Rwanda’s trade deficit narrowed in the second quarter of 2025 as both exports and imports fell, signaling a slowdown in cross-border trade, according to the National Institute of Statistics of Rwanda (NISR).
Total trade during April to June reached $1.73 billion, down 13% from the first quarter. Domestic exports stood at $346 million, a 28% drop from Q1 and 36% lower than in the same quarter of 2024. Re-exports of foreign goods totaled $142 million, falling 13% year-on-year, though slightly higher than the previous quarter.
The United Arab Emirates, DR Congo, China, Belgium, and Luxembourg remained Rwanda’s top export destinations, accounting for nearly 68% of domestic exports. Re-exported goods were dominated by food and live animals, mineral fuels, and beverages and tobacco, with DR Congo alone absorbing 94.5% of all re-exports.
Imports declined to $1.25 billion, a 20.5% drop compared to the same quarter in 2024 and 9.6% lower than Q1 2025. The leading import categories included machinery and transport equipment, food and live animals, manufactured goods, fuel products, and chemicals. China, Tanzania, India, Kenya, and the UAE supplied more than half of all imports, highlighting Rwanda’s reliance on a few key trading partners.
Analysts say the decline in trade reflects both regional and global market fluctuations, as well as a cautious approach by businesses. “While the narrowing deficit shows reduced pressure on foreign currency, it also points to slower export growth, which could affect local producers,” said a trade expert.
The NISR report underscores the importance of diversifying export markets and boosting domestic production to strengthen Rwanda’s trade resilience. With key destinations concentrated in a few countries, shifts in demand or supply chains could have an outsized impact on the country’s economy.
