Kigali, Rwanda - November 13, 2024 - Today, the Government of Rwanda and the World Bank launched the Rwanda Country Economic Memorandum (CEM), titled "Pathways to Sustainable and Inclusive Growth in Rwanda." This comprehensive report, a collaborative effort between the Government of Rwanda and the World Bank, highlights the country's significant economic achievements and presents recommendations to sustain growth in alignment with the second National Strategy for Transformation (NST-2).
Rwanda has shown impressive economic resilience, with GDP growth averaging 7.4% annually between 2000 and 2023. This growth has been accompanied by improvements in social indicators, including life expectancy nearing 70 years, enhanced healthcare access, and expanded educational attainment.
The CEM highlights opportunities for Rwanda to build on these achievements by expanding private sector engagement, strengthening human capital, and enhancing agricultural resilience-critical drivers to sustain and accelerate Rwanda's path toward high, sustainable growth.
The report serves as a roadmap to address current economic challenges and seize emerging opportunities across key sectors, including private investment, education, agriculture, and climate resilience. It provides policymakers, stakeholders, and development partners with actionable insights to support the country's ambitious growth and inclusivity goals.
The Minister of Finance and Economic Planning, Yusuf Murangwa, highlighted Rwanda's recent achievements and future objectives, stating, "Rwanda's impressive progress over the past years has laid a solid foundation for economic growth and social well-being. To achieve the ambitious targets set in NST-2, we must now prioritize enhancing productivity, fostering private sector engagement, and investing in our people. The CEM provides a strategic framework to address these priorities, guiding us toward a more inclusive and resilient economy."
Key findings from the CEM underscore Rwanda's effective growth strategy, driven by public investment, alongside a promising opportunity to further boost growth through increased private sector involvement. With the private sector currently taking a non-negligable share of GDP, the report highlights substantial potential for expansion, particularly in the services and manufacturing sectors.
The CEM recommends a series of reforms aimed at enhancing competition, increasing access to finance, bolstering domestic savings, and fostering innovation and ICT development. Additionally, it underscores the importance of regional integration to expand market access and promote sustainable trade partnerships.
World Bank Country Manager, Sahr Kpundeh, emphasized the strength of the partnership between the Government of Rwanda and the World Bank. "Our collaboration underscores a shared commitment to Rwanda's vision for sustainable growth. The CEM's recommendations provide clear pathways to greater economic resilience and shared prosperity. With strategic policy adjustments, we are confident Rwanda can foster a diversified economy that brings widespread benefits to all Rwandans."
The report further highlights Rwanda's human capital as a cornerstone for achieving long-term growth. It recommends sustained investment in education, skills development, and healthcare. By nurturing a skilled and healthy workforce, Rwanda can unlock new growth potential across generations.
The CEM also emphasizes opportunities in nature-based solutions to address climate risks. By prioritizing conservation and nature-based initiatives, Rwanda can tackle climate challenges while advancing its development goals.
The launch of the CEM underscores the Government of Rwanda's commitment to a sustainable future and the ongoing partnership with the World Bank to achieve this vision. The CEM will serve as a guiding document for policymakers and stakeholders collaborating to build a brighter, more resilient, and inclusive future for Rwanda.
Ministry of Finance and Economic Planning
Sam Ruburika
World Bank Rwanda Office
Keziah Muthembwa
