KIGALI

Germany gave Rwanda a 38.5 million euro grant on Tuesday including macroeconomic support, technical assistance and funds for a range of development programmes.

The economy of the central African nation has been rebuilt after the 1994 genocide, largely on the back of aid flows.

The finance ministry says donor support amounts to about 22% of its $1.46b budget for the 2009/10 fiscal year.

Donor governments credit the Rwandan administration with transparency and relatively low levels of corruption, making the country a poster-child for targeted development assistance.

Rwanda’s economy grew by 3.5-5% in 2009, down from a forecast 7-8%, but is seen faring better this year, the central bank governor said last Friday.

Governor Francois Kanimba told reporters in an interview he saw better output in 2010, driven by rising global demand for Rwanda’s main exports - coffee, tea and minerals - and improved liquidity in the banking sector.
Reuters