Some progress was made in terms of rebuilding social and economic infrastructure. The African Development Fund financed 91 percent of the Rehabilitation of Health Infrastructure project. The economy grew gradually but a reliance on commodity exports was met by repressed prices in the world market. The agriculture sector continued to be the primary export earner. The government was also mulling over plans to exploit natural resources such as natural gas under Lake Kivu with estimated reserve of more than 50bn cu meters.¹

It was reported that the consolidation of government authority contributed to the economic recovery. The real GDP recovery was 13 percent, which was a rise of 76 per cent in comparison to the pre-war period.² The relatively improved security situation in the countryside allowed the government to expand its revenue bases. The rebuilding of plantations and favorable international market for tea and coffee helped to generate much needed foreign reserve. In this regard, government also planned to boost trade and commerce and for this purpose export tariffs were reduced. To protect local industry, imports of locally produced goods were heavily taxed.³

In April 1998, the Rwandan government announced a three-year growth plan that included fiscal, monetary and structural reforms to the Rwandan economy, including the overhaul of its tax system to increase revenue. The reforms was expected to overhaul Rwanda’s public services through retrenchment , and measures to encourage domestic private sector investment to help rebuild infrastructure.⁴

Rwanda remained heavily indebted with more than 1 billion in foreign debt or 91% of its GDP.⁵ Nevertheless, Rwanda made efforts to restore the situation to normal by stabilizing society, rehabilitating the judicial system and rebuilding the economy.⁶ Donor countries and international development agencies were providing rebuilding support throughout the year.

Almost all civil administration infrastructures were restored throughout Rwanda, which facilitated a gradual repatriation of refugees. In terms of recovery, the Rwandan economy bounced back to the pre-genocide level as reported by the International Monetary Fund.⁷ According to the news report, some 60 to 70 per cent of enterprises in the tertiary sector, for instance, had re-opened and were thriving as of 1996. Nevertheless, to rebuild its economy, the Rwandan Government needed more than 800 million USD in the years 1996-1998.⁸

For the settlement of the refugees, the broad based Commission for Repatriation composed of Government, UNHCR, OAU and Refugee representatives was not set up. However, the Rwandan government signed tripartite agreements with UNHCR and the Governments of Burundi and Zaire on the voluntary repatriation of refugees. These agreements define the conditions for repatriation, including returnee protection and land tenure.⁹ On 18 July 1995, an agreement was signed to establish the tripartite commission of reparation of Rwandese Refugees from Tanzania between Tanzanian government, Rwandan government and the UNHCR representative. The agreement had provisions for four delegation representing Rwanda, Tanzania, UNHCR and the Organization of the African Unity.¹⁰ The rehabilitation and social integration ministry was committed for providing security and protection to returnees.¹¹ Since the civil administration was reestablished. Nevertheless, the report highlights the challenges related to lack of resources to run an effective administration.¹²

Some progress was made to achieve economic goals as provided in the Arusha accord. In this regard, the Rwandan government had set up a commission to start reviving the People’s Bank. The bank had been initially was set up in 1975 and it had branches in 131 of Rwanda’s 154 communes by early 1994. The infrastructure was destroyed by the conflict in 1994. The revival of the bank was a key to starting recovery of farming and rural economic activities.¹³

There was sign of economic recovery in the export sector as well. It was reported that farmers in tea growing districts were reviving their plantations, traditionally a hard currency earner, and foreign aid had supported initiatives to repair war-damaged factories.¹⁴ Financial supports provided by the European Union ($24.3 Million) had been distributed to rehabilitate buildings, plantations, technical training of staffs, and improving transport.¹⁵ In a sense, the economic recovery was underway.

No developments observed this year.

The broad based Commission for the Repatriation composed of Government, UNHCR, OAU and Refugee representatives was not set up. As the result, the basic socioeconomic infrastructures such as schools, health centers, water, access roads which were said to be established by the commission did not materialized. The restoration of socio-economic services as reinstalling administration did not take place.

Parliament included dual citizenship provision in the draft constitution. “A first draft constitution was published in November 2002, followed by new versions in December 2002 and February 2003.”¹⁶.

The new constitution was approved by referendum on 26 May 2003. Article 7 of the 2003 constitution provided that:

Every person has a right to nationality. Dual nationality is permitted. No person may be deprived of Rwandan nationality of origin. No person shall be arbitrarily deprived of his or her nationality or of the right to change nationality. Rwandans or their descendants who were deprived of their nationality between 1st November 1959 and 31 December 1994 by reason of acquisition of foreign nationalities automatically reacquire Rwandan nationality if they return to settle in Rwanda. All persons originating from Rwanda and their descendants shall, upon their request, be entitled to Rwandan nationality. The conditions of acquisition, retention, enjoyment and deprivation of Rwandan nationality are determined by an organic law.

No legal changes concerning dual citizenship were made this year.

No legal changes concerning dual citizenship were made this year.