Rwanda has essentially a subsistence economy. The gross domestic product (GDP) in 1999 was only $2 billion, or $240 per person. The nation suffers from soil erosion and occasional droughts and consequent famines, making Rwanda heavily dependent on foreign assistance, mainly from Belgium.

The nation's economy is overwhelmingly agricultural, with coffee exports accounting for more than 70 % of its foreign exchange and tea for more than 10 %. An insufficient subsistence agriculture, is the dominant feature of the economy, with heavy infusions of foreign aid required to meet chronic food shortages. Rwanda is the largest per capita recipient of foreign aid in Africa. Mineral resources make up from 10 to 15 % of total exports. Mineral resources include, in addition to tin and tungsten (wolfram), tantalite, columbite, and beryl. Methane gas from Lake Kivu is used as a nitrogen fertilizer and is also converted into compressed fuel for trucks. What little gold Rwanda produces is smuggled out of the nation. The Mukungwa hydroelectric power installation, the nation's major source of electricity, meets only a portion of the nation's energy needs, and much of the remainder must be imported from

Rwanda is a rural nation with about 90% of the population engaged in agriculture. It is the most densely populated nation in Africa; is landlocked; and has few natural resources and minimal industry. Primary exports are coffee and tea. The 1994 genocide decimated Rwanda's fragile economic base, severely destroyed the population, particularly women,and eroded the nation's ability to attract private and external investment. Rwanda has made remarkable progress in stabilizing and rehabilitating its economy. GDP has rebounded, and inflation has been curbed. In June 1998, Rwanda signed an Enhanced Structural Adjustment Facility (ESAF) with the IMF. Rwanda has also embarked upon an ambitious privatization program with the World Bank. Continued growth in 2001 depends on the maintenance of international aid levels and the strengthening of world prices of coffee and tea.