This was presented on May 8, 2025, by the Minister of Finance and Economic Planning, Yusuf Murangwa, during the unveiling of the Budget Framework Paper (BFP) for the period 2025/26 to 2027/28.
The framework is aligned with the National Strategy for Transformation (NST2) and Vision 2050, focusing on sustainable, inclusive development.
The proposed Frw7 trillion budget will support strategic national projects, including the ongoing construction of the New Kigali International Airport in Bugesera, the expansion of RwandAir, and post-crisis recovery initiatives related to COVID-19, May 2023 floods and Marburg disease outbreak.
To fund the budget, the government projects Frw 4,105.2 billion in domestic revenue, comprising Frw 3,628.0 billion in tax revenues and Frw 477.2 billion from other sources. It also expects Frw 585.2 billion in external grants and Frw 2,151.9 billion in loans.
Spending will be split between Frw 4,395.1 billion for recurrent expenses—including salaries and operational costs—and Frw 2,637.4 billion for capital investments that support long-term development.
The full budget for 2025/26 is expected to be formally presented to Parliament in June 2025.
Minister Murangwa highlighted the country’s resilience and growth in the face of global challenges, noting that Rwanda’s economy grew by 8.9% in 2024, surpassing earlier projections of 8.3%.
“Rwanda’s growth momentum remains strong, despite a challenging environment caused by climate change effects, global inflation, geopolitical tensions, trade wars, among other factors. Our economic recovery has been resilient.
“The Government remains committed to maintaining macroeconomic stability and fostering inclusive growth by investing in key areas such as agriculture, manufacturing, healthcare, social protection, and education,” he stated.
This growth builds on an annual average increase of 9.4%, reflecting the country’s continued efforts to strengthen and diversify its industrial base.
Among the sectors driving this expansion, electricity production stood out with a remarkable 23.2% year-on-year increase.
This substantial growth highlights the ongoing improvements in energy infrastructure and a rising demand for power, both from industrial users and households.
Electricity alone contributed 4.4 percentage points to the overall annual change—making it the most influential factor behind March’s performance.
Manufacturing, Rwanda’s largest industrial subsector by weight, recorded a 1.7% increase.
Within this category, food processing performed particularly well, growing by 7.8% compared to March last year.
The furniture and other manufacturing segment also saw a strong 19.3% rise, suggesting growing activity in small-scale production and consumer goods.
However, not all segments fared equally—textiles, clothing, and leather goods fell sharply by 11.2%, and the wood, paper, and printing industries declined by 8.2%, signaling possible structural or demand-related challenges in those areas.
Mining and quarrying, another key industrial activity, experienced a 4.1% increase compared to March 2024, while water and waste management rose modestly by 1.4%.
These sectors contributed marginally to the overall index but remained part of the broader industrial expansion.
On a month-to-month basis, March 2025 also showed signs of healthy momentum, with output rising by 3.9% compared to February.
Mining activity was especially dynamic during this period, jumping by 17.2%, while the manufacturing of beverages and tobacco products increased by 11.4%.
This upward trend illustrates Rwanda’s broader push toward industrialization, supported by strategic investments, policy reforms, and a commitment to reducing reliance on imports.
Speaking on the Long Form podcast hosted by Sanny Ntayombya, Murenzi defended the recent findings from the 7th Integrated Household and Living Conditions Survey (EICV7), highlighting a remarkable 12.4% reduction in poverty, while also rubbishing past accusations of data manipulation against Rwanda.
The EICV7 survey, released on Wednesday, April 16, revealed that Rwanda’s poverty rate dropped from 39.8% in 2017 to 27.4% in 2024, lifting approximately 1.5 million people out of poverty over seven years.
“That’s equivalent to 1.5 million people coming out of poverty within a period of seven years,” Murenzi said, describing the reduction as a “surprise” given the stagnation in poverty levels between 2014 and 2017, when the rate only fell from 39.1% to 38.2%.
He attributed the progress to cumulative government efforts and methodological updates, including capturing food consumed outside homes, such as through school feeding programs, and adjusting the calorie threshold for extreme poverty from 2,500 to 2,400 calories per day.
Murenzi strongly defended NISR’s data integrity, addressing a 2019 Financial Times article that accused Rwanda of misrepresenting poverty statistics.
“We don’t give weight to such criticism because of who they are,” he stated, arguing that critics like the Financial Times lack the statistical expertise of authoritative institutions like the World Bank, Iinternatinal Monetary Fund (IMF), and United Nations (UN) Statistics Division, all of which validate NISR’s methodologies.
He stressed Rwanda’s adherence to international standards, noting, “What we do across various statistics… are things done following international standards practices.”
Murenzi also refuted claims of World Bank dissent, highlighting ongoing collaboration, with a senior World Bank economist present at the EICV7 launch to endorse the findings.
The NISR chief underscored the institute’s independence, denying any political pressure to manipulate data.
“There’s no pressure for me because I’m not the one implementing,” he said, explaining that NISR’s role is to measure, not implement, policies.
He pointed to NISR’s transparency in reporting unfavourable trends, such as unemployment rising to 21% during COVID, negative GDP growth, and inflation peaking at 20% in 2022.
Murenzi also cited NISR’s rigorous approach to evaluating local government performance (Imihigo), using evidence-based checks like household sampling and site visits to counter inflated claims.
Beyond poverty, the EICV7 highlighted Rwanda’s inequality challenges, with a national Gini coefficient of 0.37 indicating moderate inequality, while Kigali’s 0.44 reflects a higher wealth gap.
“In Kigali… you have a concentration of those in the country who are well off,” Murenzi explained, noting that provinces show lower inequality (0.27–0.3) due to smaller disparities.
He clarified that this does not mean provinces are uniformly poor, but rather that wealth gaps are less pronounced outside the capital.
Murenzi also addressed Rwanda’s Vision 2035 goal of achieving upper-middle-income status, requiring a GDP per capita of approximately $4,000 by 2035. Acknowledging the ambition, he noted that it demands annual growth of around 12%, far exceeding recent trends.
“There’s no ambiguity that this ambition requires another change in the way things are done,” he said, citing government-wide efforts to enhance efficiency and evidence-based policymaking.
He envisioned an expanded role for NISR, with analysts working directly with ministries like Agriculture to optimise interventions.
“We are saying our role is going to include sending our analysts to work with ministries… to say in your interventions how is evidence,” he added.
On poverty metrics, Murenzi clarified why Rwanda’s poverty line (~560,000 RWF/year, or ~$400 at 1,400 RWF/USD) differs from the World Bank’s $2.15/day global benchmark.
“Every country has its poverty line because it is reflecting the context the cost of living,” he said, noting that Rwanda’s line accounts for local costs, unlike the World Bank’s standardized measure for cross-country comparisons.
The extreme poverty threshold, set at 2,400 calories per day, aligns with World Food Programme standards, reflecting Rwanda’s evolving economic activities from subsistence farming to mixed sectors.
Murenzi emphasised data accessibility, confirming that the EICV7 report and anonymised raw data are available on NISR’s website.
“The report is already on our website. We are already tweeting it and sharing a link,” he said, adding that the data’s transparency allows independent verification.
According to a prospectus issued by the National Bank of Rwanda (BNR), the fixed coupon bond, designated FXD 9/2025/10YRS, will be issued on April 23, 2025, and will mature on April 13, 2035.
The proceeds will be directed towards development of infrastructure projects and efforts to deepen the country’s capital markets.
The interest rate will be determined at the close of a book-building process on Wednesday, April 23, 2025 at 4:00 PM Kigali time. Semi-annual interest payments will commence on October 24, 2025.
The bond is open to both resident and non-resident investors with a Central Securities Depository (CSD) account, and the minimum investment is FRW 50 million for competitive bids and FRW 100,000 for non-competitive bids.
“The allotment process will cater to both retail and institutional investors, following EAC common market protocols,” BNR stated. Bids will be accepted from April 21 to April 23, with results expected by 5:00 PM on issuance day. Settlement is scheduled for April 25.
Fitch ratings in November 2024 maintained Rwanda’s long-term foreign-currency issuer default rating at ‘B+’ with a stable outlook, citing strong governance and sound macroeconomic management.
The Rwandan government has doubled efforts to mobilize domestic resources, with treasury bonds increasingly becoming a primary tool for budget support and economic resilience. The economy expanded by 7.6% in 2024, underpinned by growth in services, agriculture, and construction.
Analysts say Rwanda’s continued success in the domestic bond market reflects investor confidence in the country’s long-term economic fundamentals and disciplined fiscal management. Previous issuances, including the FXD 6/2021/7YRS and FXD 4/2020/15YRS bonds, were oversubscribed.
“Putting together all the recent tariff increases, pauses, escalations, and exemptions, it seems clear that the U.S. effective tariff rate has jumped to levels last seen several lifetimes ago,” Georgieva said in a speech before the IMF-World Bank Spring Meetings scheduled for next week.
“The complexity of modern supply chains means imported inputs feed into a broad range of domestic products. The cost of one item can be affected by tariffs in dozens of countries. In a world of bilateral tariff rates, each of which may be moving up or down, planning becomes difficult,” Georgieva said.
“The result? Ships at sea not knowing which port to sail to; investment decisions postponed; financial markets volatile; precautionary savings up. The longer uncertainty persists, the larger the cost,” she continued.
The IMF chief noted that rising trade barriers hit growth “upfront,” and protectionism erodes productivity over the long run, especially in smaller economies.
The IMF will quantify these costs in its new World Economic Outlook, to be released early next week.
“In it, our new growth projections will include notable markdowns, but not recession. We will also see markups to the inflation forecasts for some countries,” Georgieva said.
The IMF chief urged policymakers to redouble efforts to “put their own houses in order,” noting that most countries must “take resolute fiscal action to rebuild policy space,” setting out gradual adjustment paths that respect fiscal frameworks.
She also called for “agile and credible” monetary policy, along with strong financial regulation and supervision.
Highlighting the importance of “cooperation in a multi-polar world,” the IMF chief emphasized that trade policy must aim for a settlement among the largest players that preserves openness and delivers a more-level playing field – “to restart a global trend toward lower tariff rates while also reducing nontariff barriers and distortions.”
The 7th Integrated Household Living Conditions Survey (EICV7), conducted between October 2023 and October 2024, covered 15,066 households across the country. The report was officially launched by Prime Minister Édouard Ngirente at the Kigali Convention Centre on Wednesday.
The survey shows that the national poverty rate dropped from 39.8% in 2017 to 27.4% in 2024, with approximately 1.5 million Rwandans lifted out of poverty since the last survey.
“These achievements were realized over the seven years of implementing the first National Strategy for Transformation (NST1),” said Prime Minister Ngirente during the launch. “They were driven mainly by strategic investments made by the Government of Rwanda and its partners over the last seven years.”
He added: “The long-standing social protection schemes played an important role in improving the well-being of our citizens. These efforts have also effectively contributed to the creation of income-generating activities and job opportunities in Rwanda, and it is a clear demonstration of the impact that can be achieved through good planning and effective implementation.”
The rural poverty rate now stands at 31.6%, while urban areas report a significantly lower rate of 16.7%. The Western Province remains the most affected, while the City of Kigali reports the lowest poverty levels.
Among the districts, Musanze recorded the most dramatic improvement, with poverty levels falling from 42.3% to 21.0%—a 21.3 percentage-point drop.
Only 14 districts had more than 40% of their population living in poverty in 2024, down from 22 districts in 2017. Meanwhile, 16 districts now report poverty rates below the national average.
Extreme poverty also declined sharply, dropping by 5.9 percentage points compared to 2017. The national extreme poverty rate now stands at 3.1%.
According to NISR Director General Ivan Murenzi, a Rwandan needs at least 560,027 Rwandan Francs annually to meet the basic cost of food and non-food necessities.
The report also highlighted improvements in other socio-economic indicators, particularly in rural areas, where access to electricity, mobile phones, internet, and improved drinking water sources has significantly increased. Household access to electricity rose from 34.4% to 72%; mobile phone ownership increased from 66.9% to 84.6%; and internet access grew from 17% to 30%.
Speaking at the event, Minister of Finance and Economic Planning Yusuf Murangwa described the release of the report as timely, noting that it will support evidence-based policymaking to achieve the goals of the Second National Strategy for Transformation (NST2).
“These results will define where and how the government and partners should invest to get maximum results for NST2 objectives by 2029,” he stated.
The new tariffs are set to take effect from Thursday.
Beijing has called on the international community to unite against Trump’s tariffs, as Chinese exporters face significant challenges from the new levies.
In 2024, the US imported approximately $440 billion worth of goods and services from China, while China imported around $145 billion in goods and services from the US.
The Travel Expenditure Survey (TES), conducted by the National Institute of Statistics of Rwanda (NISR) in collaboration with key partners, provides detailed insights into travel-related spending, offering a comprehensive breakdown of both inbound and outbound travel expenditures.
For non-resident visitors in Rwanda, the survey categorises their spending on goods and services as credits or exports. Conversely, payments made by Rwandan residents while travelling abroad are classified as debits or imports.
The data collection process for the survey involved gathering expenditure details from a diverse sample of travelers. Spending was analysed across key categories, including accommodation, food and beverages, transportation, shopping, entertainment, sightseeing, education-related expenses, and health-related costs. Notably, international transportation expenses were excluded from the findings.
The latest report presents findings from the survey conducted between November 1, 2024 and January 30, 2025. These insights were used to estimate travel service earnings for the fourth quarter of 2024 and the entire year’s figures.
According to the report, Rwanda’s travel sector performed strongly in 2024, with travel service earnings in the fourth quarter alone amounting to $126.1 million. Holiday tourism was identified as the primary driver, generating $56.2 million.
The analysis of visitor spending patterns showed that tourists arriving by air accounted for 81.1% of total visitor expenditures, while those entering via land borders contributed the remaining amount.
Foreign visitors’ spending varied based on origin and mode of travel. Air travelers from Asia had the highest average daily expenditure at $197 per person, followed by those from North America and other African countries at $151 per day.
European visitors spent an average of $129 daily, while East African visitors had the lowest daily expenditure at $82. For land travelers, North Americans on holiday spent an average of $146 per day, while visitors from Asia and Europe spent $109 and $100 per day, respectively.
For the full year, travel exports amounted to $579.5 million, while travel imports stood at $363.8 million. This resulted in Rwanda recording a net surplus of $215.6 million in travel services.
In 2024, 44.6% of foreign visitors traveled to Rwanda for holidays, 28.1% visited friends and relatives, while 14.1% came for business purposes.
Rwanda aims to double its tourism revenue in the coming years, targeting an increase from $620 million in 2024 to $1.1 billion by 2029.
The latest findings are essential for, among other purposes, guiding policymakers, businesses, and other stakeholders in making informed, data-driven decisions to further enhance Rwanda’s tourism and travel sector.
This means that in 2024, roughly for every seven people in the labour force, there was one person unemployed. This represents a decrease of 2.3 percentage points compared to 2023.
The report indicates that Rwanda’s working-age population stands at approximately 8.3 million individuals. Of this, around 4.4 million are employed, while 780,000 remain unemployed.
Additionally, 3.1 million people are not part of the labour force. The labour force participation rate has also seen positive growth, rising to 62.9% in 2024, an increase of 3.6 percentage points from 2023, reflecting a larger share of the population engaging in the labour market.
However, the survey also highlights persistent disparities in the labour market. The gender gap in labour force participation remains significant, with males consistently outperforming females. In 2024, the gender gap stood at 15.5 percentage points, a figure consistent with 2023 levels.
The employment-to-population ratio has also improved, climbing to 53.5% in 2024, up from 49% the previous year. However, this ratio was notably higher among males (62.2%) compared to females (45.9%). It was also higher for adults (31 years and above) than for the youth (16-30 years).
Sectoral employment trends show that the services sector has become the primary driver of employment, accounting for 42.9% of total employment in 2024, up from 39.8% in 2023. On the other hand, employment in the agriculture sector has declined to 39.9%, down from 43.4% in 2023.
Despite the decrease in overall unemployment, it remains higher among females, who face an unemployment rate of 17.6%, compared to 12.6% for males. Additionally, the youth (16-30 years) continue to face higher unemployment rates at 18.5%, compared to 12.3% for adults.
Labour underutilization, which includes unemployment and other factors such as time-related underemployment, stood at 54.2% in 2024. This rate was higher among females (61.2%) and the youth (56.2%), compared to males (47%) and adults (52.8%).
The report also sheds light on the prevalence of informal employment, with 82.3% of the employed population working in the informal sector in 2024. This highlights the continued challenges of securing formal employment opportunities.
The enhanced sampling methodology used in the 2024 RLFS, which incorporated data from the 2022 National Population and Housing Census, offers a comprehensive overview of the nation’s labour market.
The insights provided in the report are crucial for policymakers and stakeholders as they seek to address challenges such as unemployment, labour underutilization, and gender disparities, while working towards ensuring decent work for all.
This remarkable growth was driven by strong performances across various sectors of the economy, signaling resilience and growth amidst global challenges.
The figures released by NISR on Wednesday also show that the services sector was the largest contributor to the GDP, accounting for 48% of the total. Agriculture followed with 25%, while industry contributed 21% while net direct taxes accounted for 7%.
The growth was seen throughout the year, with the first quarter growing by 9.7%, the second by 9.8%, the third by 8.1%, and the final quarter showing a growth of 8%.
Looking at the individual sectors, agriculture experienced a 5% increase. This was largely attributed to a good harvest in both agricultural seasons, with food crop production rising by 5%. Season A saw an 8% increase, while Season B recorded a 2% increase.
However, the production of export crops decreased by 1%, with modest increases in coffee and tea offset by declines in other cash crops such as pyrethrum and sugarcane.
The industry sector experienced a notable boost, growing by 10%. Mining and quarrying activities increased by 12%, construction activities also saw a 12% increase, and manufacturing activities grew by 7%.
The growth in manufacturing was particularly driven by significant increases in the production of metal products, machinery and equipment (up 20%), non-metallic mineral products (up 15%), and chemicals, rubber, and plastic products (up 15%). Other areas like textiles, clothing, and leather also saw a 10% increase in manufacturing, while food processing grew by 2%.
The services sector also showed remarkable growth, with a 10% increase overall. Wholesale and retail trade surged by 18%, while transport activities rose by 9%, including an 18% growth in air transport and a 10% increase in land transport.
Other service areas performed well, with hotels and restaurants seeing an 11% growth, information and communication services up by 25%, and financial services growing by 7%. Public administration services increased by 10%, while health services grew by 15%, and education services saw a 5% rise.
