Rwanda and the World Bank have unveiled a strategic roadmap for sustaining the country’s economic growth, the Rwanda Country Economic Memorandum (CEM), which offers a comprehensive look at Rwanda’s remarkable economic progress and sets out clear pathways for continued success in line with the nation’s second National Strategy for Transformation (NST-2). Launched on Wednesday in Kigali, the report, titled “Pathways to Sustainable and Inclusive Growth in Rwanda,” is a collaborative effort between the Government of Rwanda and the World Bank, highlighting key areas for the country to address as it continues to evolve.
Rwanda has experienced impressive economic resilience over the last two decades, with a gross domestic product (GDP) growth averaging 7.4% annually from 2000 to 2023. Alongside this growth, the country has made significant strides in improving the quality of life for its citizens, including increased life expectancy, better access to healthcare, and expanded educational opportunities. The launch of the CEM coincides with the country’s push to build on these achievements and further accelerate its economic transformation.
One of the core themes of the CEM is the importance of expanding private sector engagement. Although public investment has played a crucial role in driving Rwanda’s economic success, the report stresses that there is substantial untapped potential in the private sector, especially in services and manufacturing. The CEM outlines a series of reforms aimed at enhancing competition, boosting access to finance, fostering innovation, and leveraging information and communications technology (ICT) to accelerate economic diversification. These steps are seen as vital in helping the country sustain its growth momentum in the years to come.
At the launch event, Rwandan Minister of Finance and Economic Planning, Yusuf Murangwa, emphasized the importance of building on Rwanda’s progress, particularly in enhancing productivity and deepening private sector engagement. He stressed that to meet the ambitious targets of NST-2, the country must prioritize investments in human capital, including education, skills development, and healthcare. These investments, he noted, would not only improve the lives of Rwandans but also equip the workforce to thrive in a rapidly changing global economy.
The CEM also highlights the importance of regional integration as a key strategy for expanding market access. By strengthening trade partnerships within the East African Community (EAC) and beyond, Rwanda can tap into new opportunities for economic growth while simultaneously diversifying its exports. The report underscores the need for sustainable trade partnerships, which will not only bolster Rwanda’s economic resilience but also promote inclusive growth that benefits all segments of society.
Sahr Kpundeh, World Bank country manager for Rwanda, praised the strength of the partnership between the World Bank and the Government of Rwanda. He noted that the CEM’s recommendations provide a clear framework for enhancing Rwanda’s economic resilience and promoting shared prosperity. The collaboration reflects a shared commitment to Rwanda’s vision of becoming a middle-income, knowledge-based economy.
In addition to economic diversification, the CEM highlights the importance of nature-based solutions to address climate risks. Rwanda’s vulnerability to climate change poses a significant threat to its agricultural sector, which remains a key driver of the economy. To counteract this, the report advocates for investments in conservation and environmentally-focused initiatives to both protect the natural environment and support sustainable economic growth.
Prime Minister Edouard Ngirente echoed the significance of the CEM’s recommendations, calling the report a crucial guide for implementing the necessary reforms to achieve Rwanda’s transformational goals. He stressed that the country’s commitment to investing in its people, strengthening institutions, and ensuring environmental sustainability would be key to its future success.
The Rwanda Country Economic Memorandum serves as a strategic document for policymakers, stakeholders, and development partners, offering actionable insights to address current challenges and seize emerging opportunities. With its focus on private sector engagement, human capital, regional integration, and climate resilience, the CEM provides a clear pathway for Rwanda to continue its impressive growth story while striving for a more inclusive and sustainable future. As Rwanda charts its path forward, the collaborative effort with the World Bank serves as a powerful reminder of the importance of partnerships in building a prosperous and resilient economy.
