Overview
As of May 20, 2020, Rwanda has reported 314 cases of COVID-19 infection, of which 216 recoveries (no deaths). The government has implemented a range of containment measures in response to the pandemic including border closure, suspension of domestic travel, cancellation of public gatherings, institution of teleworking, closure of schools, places of worship and non-essential businesses, and mandatory wearing of face masks.
Travel Restrictions
1. Flights to Kigali International Airport (KGL) are suspended.
2. Nationals and residents of Rwanda will be subject to a mandatory 14-day quarantine at designated locations.
Source : IATA Timatic
Economic Measures
Reopening of the economy.
A gradual easing of lockdown measures was introduced on May 4, with selected businesses allowed to resume operations while adhering to health guidelines. Domestic movement restrictions were partially relaxed but strict physical distancing measures mandated in public buses. Bars and schools remain closed. Steps to reopen the economy include the lifting of restrictions on interprovincial travel, with motorcycle taxis permitted to resume transportation of passengers except in a few areas under lockdown, the reopening of places of worship, and the resumption of selected outdoor sports activities and charter flights. Commercial flights resumed on August 1, with a requirement for all passengers to test negative for COVID-19 within 120h prior to arrival and again upon arrival. Travelers leaving Rwanda are also required to take a test. Following the recent hike in infections in Kigali, two major markets were closed for 14 days, public transportation between the capital and other districts prohibited, the nighttime curfew temporarily lengthened, and public offices mandated to work at a further reduced capacity to reinforce social distancing. A schedule of fines for COVID-19 guidelines offenders was also announced. Participants in public gatherings and tourists visiting national parks must test negative for COVID-19.
Key Policy Responses as of September 23, 2020
FISCAL
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The pandemic is expected to cause a revenue shortfall of 4 percent of GDP. The government’s Economic Recovery Plan in response to the pandemic is estimated at about 3.3 percent of GDP. Support to vulnerable households takes the form of a food distribution program (door-to-door provision of basic food stuffs every three days), cash transfers to casual workers, subsidized access to agricultural inputs, and measures to ensure poor households’ access to basic health and education. The government is also preparing to launch a fund to support affected businesses through subsidized loans from commercial banks and MFIs, and credit guarantees. It is expected to target SMEs and hard-hit sectors such as the hospitality industry. Tax deferral and relief measures include the following: (i) suspension of down payments on outstanding tax for amicable settlement, (ii)softening of enforcement for tax arrears collection, (iii) extension of the deadline for filing and paying CIT, (iv) fast-tracking of VAT refunds to SMEs, (v) CIT and PIT payments based on current year transactions, (vi) PIT exemption for private school teachers and tourism and hotel employees earning less than RWF 150,000/month, and (vi) VAT exemption for locally produced masks. The 30-day maturity period for the public health insurance scheme premium was removed to expedite access to medical services and the salaries of top civil servants for the month of April was redirected to welfare programs.
MONETARY AND MACRO-FINANCIAL
- On March 18, the central bank announced liquidity support measures: (i) an extended lending facility worth RWF 50 billion (0.5 percent of GDP) available to liquidity-constrained banks for the next six months. Under this facility, banks can borrow at the policy rate and benefit from longer maturity periods; (ii) Treasury bond purchases through the rediscount window for the next six months; and (iii) lowering of the reserve requirement ratio by 100 basis points, from 5 to 4 percent, effective from April 1. Loan repayment conditions were also eased for impacted borrowers, and charges on electronic money transactions waived for the next three months. On April 30, the central bank cut the policy rate by 50 basis points to 4.5 percent. Charges on electronic money transactions were reinstated on June 22.
EXCHANGE RATE AND BALANCE OF PAYMENTS
Source : IMF & WB
Civic Freedom Tracker
NATIONWIDE PROHIBITION ON NON-ESSENTIAL MOVEMENT
The notice institutes a complete ban on individuals' movement from their homes, except for essential services, for an initial 14-day period. (See primary source or citation here)
Type: order
Date Introduced: 21 Mar 2020
Issue(s): Movement
Source : ICNL
