The Socio-economic Impact of Covid-19 in Rwanda

Abstract

The main objective of this socio-economic impact assessment report is to assist the UN and other development partners in Rwanda to target their efforts more effectively in response to the COVID-19 pandemic. It brings together the main findings of various UN agency socio-economic impact assessments and suggests policy recommendations. It is an effort to streamline and consolidate ongoing work by various UN Agencies operating in Rwanda, as well as provide perspectives at the regional and global levels as they affect the country. The UN joint inter-disciplinary quick analysis of the likely impact of COVID-19 sheds light on macroeconomic fundamentals, trade and economic resilience, private sector, health outcomes, food security, social service delivery, household livelihoods, poverty, and vulnerabilities and gender. Rwanda has very strong basis to manage the crisis: a clear vision with the National strategy for transformation grounded on Agenda 2030 and Agenda 2063, a good leadership, well-functioning institutions including the health system, good social protection mechanisms, good infrastructure and a focus on innovations, a sound macro-economic situation with a good debt management and a track-record of high level growth rate and a solid data system allowing a good analysis. Of course, the dependency on the services notably hospitality, hotels and tourism could negatively impact that capacity of resilience. This could be compounded by the negative consequences on the negative consequences on the transportation sector and the importance of the informal sector. Following Rwanda’s first recorded case of COVID-19 on March 14, 2020, Rwanda swiftly put into play decisive measures to contain the spread of the disease. By March 21, a full lockdown had been implemented. This report notes that the efforts made to minimize the spread of the virus, such as containment measures, including social distancing and lockdown, the closing of schools, the prohibition of public gatherings, and closure of non-essential business and economic activities, have had and will continue having far-reaching social and economic consequences; even though the measures have positively impacted the management of the health crisis.