NAIROBI,Kenya,Sep 22 – Rwanda’s economy grew by 9.7% in the first quarter of 2024, according to the 23rd edition of the Rwanda Economic Update (REU), recently released by the World Bank.
This growth outpaced the 8.2% recorded in the same period last year.
The report, titled Accelerating Skills Development to Foster Private Sector Growth, highlights Rwanda’s economic resilience despite a global slowdown.
The performance was attributed to the country’s strong consumer spending, along with growth in key sectors such as services, mining, and construction.
The report also revealed a significant recovery in the labor market, marking the most substantial reduction in unemployment since the COVID-19 pandemic.
“The labor market expansion in Rwanda was broad-based, with women benefiting slightly more than men. To leverage its youth demographic, Rwanda needs to expand labor force participation, as only 2.8 million out of 8.1 million working age individuals are employed full time,” said Calvin Djiofack Zebaze, World Bank Senior Country Economist for Rwanda.
Looking ahead, Rwanda’s GDP growth is expected to average 7.6% between 2024 and 2026, supported by private investment, a recovering tourism sector, and favorable agricultural conditions.
However, the report also pointed out that Rwanda faces considerable challenges in skills development.
While the country has made notable strides in education, more effort is needed to align workforce skills with labor market demands and national development goals.
For example, in agriculture and industry, most workers have only attained basic education.
In agriculture alone, 98% of the workforce has not completed primary school, limiting their access to decent job opportunities and constraining sectoral growth.
The report emphasizes that reforming the skills development system is essential for Rwanda’s transition to a knowledge-based economy and for addressing the needs of key sectors.
The World Bank reaffirmed its commitment to working closely with the Government of Rwanda on skills development.
Earlier this month, the bank approved $200 million for the Priority Skills for Growth and Youth Empowerment (PSGYE) Project, aimed at strengthening skills development initiatives across the country.
