In 2024, Rwanda’s economy demonstrated remarkable resilience, achieving a real GDP growth rate of 8.9%, surpassing the 8.2% growth recorded in 2023. The robust economic performance reflects a combination of strong private consumption, significant investments, and growth in services and industry. The recovery of the agriculture sector, a key pillar of Rwanda’s economy, also contributed substantially to this growth. This economic expansion led to a substantial increase in employment, with over half a million new jobs created compared to the previous year. The services sector, which regained its position as the largest employer in 2024, played a critical role in the country’s employment growth, following a period when agriculture had been the largest employer.
Agriculture remains the cornerstone of Rwanda’s economy, employing around 40% of the workforce and contributing 27% to GDP. Over the past decade, the agricultural sector has seen a marked increase in income, reaching $419 million. The sector has diversified from traditional cash crops like coffee and tea to a range of high-value commodities such as vegetables and fruits. This shift in agricultural production has helped improve overall economic performance, yet there is still considerable untapped potential within the sector. The report highlights that by modernizing agricultural practices, Rwanda can unlock new avenues for higher growth, enhanced employment opportunities, and increased foreign exchange earnings.
Despite these advancements, the agriculture sector continues to face significant challenges that hinder its full potential. To accelerate its growth and contribute more effectively to the country’s economic development, the sector requires increased investment in infrastructure. Notably, the development of small-scale irrigation systems and improved agro-logistics are essential to enhance productivity, reduce post-harvest losses, and improve market access for farmers. These infrastructural improvements would directly contribute to increased efficiency in production and distribution, supporting the country’s efforts to modernize the sector.
The report also emphasizes the importance of creating market-driven production systems. By aligning agricultural production with market demands, the country can encourage more productive investments, improve yields, and create new employment opportunities along the agricultural value chains. While agricultural exports account for nearly half of Rwanda’s total goods export revenues, the sector is still vulnerable to external shocks, including price fluctuations and limited integration with regional markets. Strengthening market access and boosting trade opportunities within the East African Community (EAC) and the African Continental Free Trade Area (AfCFTA) are essential steps toward enhancing Rwanda’s agricultural competitiveness.
Another critical aspect for the agricultural sector’s future growth is the improvement of seed systems and the implementation of regulatory reforms to attract private investment. By addressing these bottlenecks, the country can further strengthen its agricultural value chains and ensure a more competitive and sustainable food sector. Investment in value addition and modernizing production systems will play a key role in Rwanda’s agricultural transformation, paving the way for a more resilient and diversified agricultural economy.
Rwanda’s agricultural sector remains fundamental to the country’s long-term economic and developmental goals. As the government continues its journey toward transforming the agricultural landscape, it is crucial to build on recent progress and implement policies that foster private sector involvement, improve infrastructure, and open new trade avenues. By doing so, Rwanda can unlock the full potential of its agriculture sector, which will be essential for sustaining growth, reducing poverty, and ensuring food security for the nation.
