VZCZCXYZ0002
RR RUEHWEB

DE RUEHLGB #0934 2880807
ZNR UUUUU ZZH
R 150807Z OCT 07
FM AMEMBASSY KIGALI
TO RUEHC/SECSTATE WASHDC 4789
INFO RUEHNR/AMEMBASSY NAIROBI 1026
RUEHDR/AMEMBASSY DAR ES SALAAM 0968
RUEHJB/AMEMBASSY BUJUMBURA 0159
RUEHKM/AMEMBASSY KAMPALA 1728
RUEHFR/AMEMBASSY PARIS 0341
RUEHKI/AMEMBASSY KINSHASA 0301
RUEHDS/AMEMBASSY ADDIS ABABA 0138

UNCLAS KIGALI 000934 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR AF/C 
DEPARTMENT PASS USTDA: EEBONG 
DEPARTMENT PASS USTR: WJACKSON 
DEPARTMENT PASS COMMERCE: RTELCHIN 
DEPARTMENT PASS OPIC: BCAMERON 
ADDIS FOR LISA BRODEY 
 
E.O. 12958:  N/A 
TAGS: EFIN ECON PGOV EINV ENRG ETRD EPET BTIO RW
SUBJECT: RWANDA MONTHLY ECONOMIC REVIEW 
 
DEVELOPMENT PROJECTS / ISSUES 
 
¶1.   The Dutch government, through the Netherlands Organization for 
International Cooperation in Higher Education (NUFFIC), is 
supporting the Rwanda Flower Farmers Association.  In an attempt to 
increase flower exports to the Netherlands, the Dutch project will 
train six cooperatives in better farming and production strategies. 
The training will cover crop management, pest and disease control, 
fertilization, post harvest and package handling, electronic 
irrigation, and fertilizer production. 
 
COMMERCIAL OPPORTUNITIES / SUCCESSES 
****************************************** 
¶2.  Rwanda's tea production rose by 21 percent in the first seven 
months of 2007 due to good rains and increased use of fertilizers. 
The average price of the tea crop, however, dropped to USD 1.69 per 
kilogram (kg) in the first seven months of 2007 from USD 2.04/kg in 
¶2006.  The American-owned Sorwathe tea plantation continued to have 
the highest production of Rwanda's ten major tea factories, 
producing 2.4 million kg during the period.  The increased 
production, however, did not off-set the drop in tea price. 
Rwanda's tea traditionally has been sold to the United Kingdom, 
Pakistan and Egypt.  This year, Rwanda's markets have expanded to 
include Russia, Iran and Yemen. 
¶3.  Rwanda hosted a Golden Cup Competition to garner international 
recognition for its burgeoning specialty coffee industry.  Sixteen 
professional cuppers from Europe, Japan, and the United States 
visited and evaluated coffee from 20 different washing stations. 
The organizers of the competition held an auction at the conclusion 
of the contest, fetching prices as high as USD 55.10 per kg, which 
is 25 times the typical price paid for specialty coffee. 
 
MACROECONOMIC INDICATORS 
******************************* 
¶4.  The Cabinet adopted the Economic Development and Poverty 
Reduction Strategy 2008-2012 (EDPRS).  This roadmap for poverty 
reduction aims to make Rwanda a middle income country by the year 
¶2020.  EDPRS prioritizes government actions to enhance job growth, 
exports, governance, and rural development. 
 
¶5.  Torrential rainfall earlier this month in northwestern Rwanda 
destroyed homes, ruined crops, killed 15 people and left thousands 
more homeless.  The flash floods hit the Nyabihu and Rubavu 
districts the hardest. While there have been fears that the effects 
have the potential to create long-term health and food security 
crises across the country, most assessments view the situation as a 
localized issue.  The government, along with several international 
organizations, has provided emergency food aid and non-food items 
such as plastic sheetings. 
 
 
ARIETTI