Category: Economy

In the survey results announced on Monday, May 20, 2024, NISR said the significant decline brought back the unemployment rate to the pre-COVID-19 estimate of 13.1 per cent.

The latest trend shows that in the first quarter of 2024, one person was unemployed for every eight people in the labour force.

The report further indicates that gender disparities persist in unemployment, with females experiencing a higher rate at 14.5 per cent compared to males at 11.5 per cent.

Furthermore, youth face a notably higher unemployment rate of 16.6 per cent compared to adults at 10.3 per cent.

NISR also highlighted that urban areas continue to bear a heavier burden with an unemployment rate of 14 per cent compared to rural areas where the unemployment rate stands at 12.3 per cent.

“Despite these challenges, there is progress in narrowing the gender gap in unemployment, which was recorded at 3 percentage points in 2024(Q1), showing improvement from 3.7 percentage points in the same quarter last year,” NISR said.

“This data underscores the need for targeted interventions to address unemployment disparities across demographics and regions, ensuring inclusive economic growth and opportunities for all Rwandans.”

The latest survey also sheds light on the composition of Rwanda’s workforce. Out of an estimated working-age population of 8.2 million (16 years and above), approximately 4.37 million are employed. Another, 648,000 individuals are currently unemployed, while 3.2 million are categorized as out of the labour force. This means Rwanda’s labour force, encompassing both employed and unemployed individuals, stands at around 5 million.

The labour force participation rate, representing the proportion of the working-age population actively engaged in the labour force, has continued to record a steady increase since 2021 Q1. By 2024 Q1, this rate reached 61.0 per cent, marking a 2.4 percentage point rise from the previous year’s estimate of 57.6 per cent.

Additionally, the gender disparity in labour force participation persists, with males consistently exhibiting higher participation rates than females. In February 2024(Q1), this gender gap stood at approximately 14.6 per cent, mirroring the situation observed in the same quarter of the previous year.

EPR

The Employment-to-Population Ratio (EPR) increased significantly from 47.7 per cent in the first quarter (Q1) of 2023 to 53.1 per cent in the first quarter of 2024.

Although the overall picture is positive, there are still disparities in who gets jobs. Men have a significantly higher EPR (60.9 per cent) compared to women (46.3 per cent) in 2024 Q1.

Similarly, younger people (16-30 years old) have a lower EPR (47.7 per cent) compared to adults (57.4 per cent), pointing at challenges for youth entering the workforce.

Makhtar Diop, the Managing Director of the International Finance Corporation (IFC), argued that companies in Silicon Valley and other Western countries mainly fund most African start-ups.

The IFC boss noted that some of the disruptive start-ups had benefited from the organization’s direct funding, but more was needed to support the companies.

“We need to support our start-ups. It’s imperative that more funding, especially from the domestic private sector, is directed towards this vibrant sector. At IFC, we are trying to do that with our direct technology fund, and we are trying to invest in start-ups in technology that will make a difference for development. But we need more billionaires and millionaires in Africa to believe in these start-ups. These start-ups are still largely funded from Silicon Valley and other parts of the world,” Diop stated.

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector in developing countries.

Diop praised ongoing, revolutionary projects undertaken by organizations like Genomics Africa, which have helped Africa claim its position in research sectors previously dominated by other regions, saying “This is the African Continental Free Trade Area (AfCFTA) in action.”

He noted that genomics research leverages the rich biodiversity and genetic resources of the continent, laying the groundwork for precision medicine and the development of treatments tailored to the specific needs of the African population and diaspora.

To keep up Africa’s growth momentum, Diop emphasized the need to exploit digitization, stating that data is the new gold.

He also called for more investments in the education system, saying “It’s time to create emphasis on science, technology, engineering and mathematics.”

“It’s heart-warming to see Rwanda hosting regional institute of mathematics and IT and forging partnerships with renowned academic institutions. This is an example that needs to be multiplied and repeated across the continent.”

He called for increased partnerships and dialogue between the private and public sectors to achieve sustained economic development across all sectors, including energy and agriculture.

“Many of our utilities are in poor condition, which limits the ability of the private sector to invest in renewable energy generation. We lack a private sector presence in transmission and distribution. All these factors are hindering investment in this sector, which is crucial for Africa’s development,” he stated.

Kigali welcomes the Africa CEO Forum for the second time since 2019 when the forum made its debut in the East Africa region. More than 2,000 business leaders and government officials are gracing the CEO forum.

President Paul Kagame his Mozambique counterpart Filipe Nyusi and two prime ministers, Patrice Emery Trovoada of Sao Tome and Robert Beugre Mambe of Côte d’Ivoire attended the opening ceremony on Thursday morning. Presidents William Ruto of Kenya, Mokgweetsi Masisi of Botswana, and Ismail Omar Guelleh of Djibouti are also expected at the two-day event.

Rwanda Development Board (RDB) is hosting the event alongside IFC.

The forum themed “At the table or on the menu?” is expected to challenge attendees to take decisive action for Africa’s future amidst global economic uncertainties.

In a statement, the company with a presence in 10 countries spanning Africa, Europe and the Middle East said the move is aimed at fulfilling its long-time running of democratizing travel and optimizing customer experience for both domestic and international travellers in the East African markets.

Wakanow Group Chief Executive Officer (CEO), Bayo Adedeji affirmed that the new market entries would redefine how business executives, tourists and fun travellers access end-to-end travel services.

“Wakanow.com brings a fresh perspective and industry expertise to delivering travel services that suit the needs of local and international travellers.

“Wakanow.com continues to push the boundaries of travel technology, and our entry into East Africa represents a milestone in our commitment to enhancing travel experiences across the continent. Our online platform will empower East African travellers with a one-stop-shop for all their travel needs”, Adebayo stated.

He further disclosed that the company has invested in technology to optimise customer experience when they book flights, hotels and other services on the website.

“At Wakanow, our unwavering focus on the customer and our relentless drive to innovate on their behalf distinguishes us from the competition. Unlike any other player in the market, we harness technology to its fullest extent, enriching the customer experience with added value”, Adebayo added.

The CEO emphasized that Wakanow’s entry into the East African market also creates a gateway to a multitude of opportunities for both the business and tourism sectors.

He also announced the appointment of Josephine Fifi Rurangwa as the Business Development Manager for the new East Africa market.

Rurangwa, the CEO said, will spearhead initiatives aimed at offering exceptional end-to-end travel deals, including flight booking, visa assistance, hotel reservation, protocol services, airport transfers (Wakanow Ride), and travel insurance.

Rurangwa welcomed the appointment and vowed to leverage her experience to deliver exceptional service to the East African market.

“I am honoured to lead Wakanow’s business development efforts in East Africa. This region holds immense potential, and I am excited to leverage my experience and expertise to ensure that Wakanow becomes the preferred travel partner for individuals and organizations in Rwanda, Tanzania, Kenya, and Uganda,” she stated.

Rurangwa affirmed Wakanow’s commitment to prioritizing customer satisfaction and democratizing travel for Africans through the Pay Small Small (PSS) offering. This program allows customers to spread the cost of their flights overtime on Wakanow.com, removing financial obstacles to booking.

“We are actively forging partnerships with local businesses, tour operators, and hospitality establishments, which will not only benefit our customers but also contribute to the local economy and tourism sector,” she added.

The company affirmed that Rurangwa, who has a decade-long career in the travel industry, brings a wealth of experience to her new role.

Prior to the appointment, Rurangwa served at Wakanow as Head of Africa Expansion.

Wakanow has been in existence for the last 16 years and is accredited by the International Air Transport Association (IATA).

As Wakanow ventures into East Africa, the company anticipates achieving new milestones under Rurangwa’s leadership, reinforcing its commitment to excellence, customer satisfaction, and innovation in the region.

Founded in 2008, Wakanow has rapidly grown to become a one-stop platform for travel enthusiasts, offering a comprehensive suite of services including flight bookings, hotel reservations, travel insurance, airport transfers, vacation packages, visa assistance, and more.

Besides Nigeria, Wakanow also operates in a number of other markets including, Ghana, Sierra Leone, Gambia, Liberia, Togo, Cote d’Ivoire, Cameroon, United Arab Emirates (UAE), and the UK.

He made this announcement on May 6, 2024, while presenting the preliminary budget framework for the fiscal year 2024/2025 to both chambers of the Parliament.

Minister Dr. Ndagijimana pointed out that domestic revenues are expected to be 3,414.4 billion Frw, accounting for 60% of the total budget.

“It is a pleasing step towards self-reliance in budgeting,” he stated.Foreign grants are expected to reach 725.3 billion Frw, or 12.7%, while foreign loans are projected at 1,318.1 billion Frw, representing 23.2% of the total budget.

In total, domestic revenues combined with foreign loans, which the country will repay, will account for 83.2% of the fiscal year 2024/2025 budget.

The ordinary budget expenditure is expected to reach 3,421.2 billion Frw, which is 60% of the total budget, while funds allocated for development and state investments will amount to 2,268.9 billion Frw, or 40% of the total budget.

Dr. Ndagijimana stated that selected activity programs are based on their alignment with the development goals we have set, which are included in the Government’s agenda to accelerate development and address the impacts of climate change on the economy and other external challenges.

“There were discussions between the Ministry of Finance and Economic Planning and all government entities regarding planning and the next fiscal year’s budget to ensure agreement on the activities and projects that will be prioritized during that year and the medium-term before approval by the cabinet. The funds have been allocated based on the objectives of the three pillars of the government’s agenda to accelerate development,” he said.

Rwanda’s economy is expected to grow by 6.6% in 2024, and by 6.5% in 2025.The growth rate will reach 6.8% in 2026, and in 2027, it is projected to increase to 7.2%, all based on global political and economic issues.

Agricultural sector output is expected to grow by 5% in 2024, compared to a 1% increase in 2023. Meanwhile, industrial output is expected to increase by 8.9% in 2024, compared to 10.9% in 2023.

The service sector output is expected to grow by 6% compared to an 11.2% increase in 2023. Market prices are expected to rise by an average of 5% in 2024 compared to a 14% increase in 2023.

Dr. Ndagijimana affirmed that this decrease in market prices will be “due to a significant reduction in food prices this year.”

In 2024, Overall balance of payments is expected to register a surplus of USD 196.4 Million from USD 107 Million of 2023.

“It will primarily be due to an increase in exports, including goods and services, as well as an increase in foreign loans obtained by the government, remittances from Rwandans abroad, and foreign investments.”

In the medium term, economic policies will focus on increasing domestic revenue, including tax law reforms and other forthcoming adjustments.

Key activities will include increasing agricultural and livestock production and activities that help the country store produce to achieve food self-sufficiency.

The job creation program will focus on supporting local industries to adopt technology, implementing basic infrastructure in industrial zones, and providing loans.

Dr. Ndagijimana also said that efforts will be made to build power plants, alongside extending electricity to households.

In infrastructure, there will be continued efforts to repair various roads and extend road networks, including building the Rusizi port on Lake Kivu.

In the pillar of social welfare, efforts will include increasing water supply networks in urban and rural areas, expanding the Karenge water plant, and others.

In health, the focus will be on repairing and expanding major hospitals such as Kabgayi and Muhororo and enhancing the capacity of Masaka Hospital to become a university hospital, as well as strengthening the health sector to combat non-communicable diseases and epidemics.

In education, the focus will be on improving the quality of education, supporting school feeding programs, placing new teachers at all levels, and promoting vocational and technical education.

Technology initiatives will include extending it to various institutions that currently lack it, including schools

In a press statement on Monday, May 6, 2024, Jasiri Growth Accelerator (JGA) said the program targets early-stage innovative startups in Rwanda and Kenya.

The program is aimed at derisking promising startups and preparing them for funding by focusing on business concept refinement, commercialization, and growth.

To qualify for onboarding on the program, the startups must show potential for high growth and evidence of traction in serving – a large, unserved, or under-served market.

“In the third cohort of the Jasiri Growth Accelerator, we are excited to invite early-stage startups with potential for scale to apply. We are seeking ventures led by ambitious, dedicated, and impact-driven co-founding teams. Our commitment through the JGA is to work alongside the founding teams to support the achievement of their growth objectives while preparing them for further investment,” Aline Kabanda, East Africa Regional Director, Allan & Gill Gray Philanthropies Rwanda, said during the launch of the program.

Selected startups will receive $75,000 in funding to support their growth. This includes a tailored split between direct funding towards working capital and funded strategic advisory to address key development areas and growth priorities.

The program will run predominantly virtually for ten months, providing flexibility, with occasional in-person attendance required for specific sessions.

The application period is scheduled to close on May 31, 2024.

Interested startups can apply to join the program using the link: jasiri.org/jasiri-growth-accelerator

Sudanese investors led by Mohamed Ali Abuelgasim from the Silverback Investment Group praised Rwanda’s conducive environment and sound investment policies, which have enabled many businesses to thrive.

“The time for Africa has come. The time for Africa is here today. Before, people were investing in the United States, Europe, Canada, and slowly, slowly, the Gulf countries. But we all have brothers, sisters, cousins, and friends in those countries, and today they are suffering in those countries. It’s not easy. It’s really difficult.

“When I talk to somebody in the United States and I tell them about my life here, they think I am lying. I tell them we have fantastic weather, people are respectful, and things get done. Rwanda works; the system is wonderful. It is extremely safe. They think I am lying… It’s very easy to sell this country because it has value, and we immediately identified that value, and that is why we are all here today with our families and businesses,” stated Abuelgasim.

Abuelgasim was speaking in Kigali on Saturday evening during a dinner between the local and Sudanese investors hosted by Khalid Musa Dafalla Musa, the Sudan Chargé d’Affaires in Kigali.

During the event, Ambassador Dafalla also hailed the strong ties between Rwanda and Sudan, affirming that Rwanda had offered fertile ground for Sudanese investors, who have ventured into different sectors including construction, services, energy, renewable energy, education, healthcare, food, farming, export and import.

The seasoned diplomat, who has only been in the country for about two months, emphasized that as the fastest-growing economy in the region, Rwanda remains a beacon of opportunity and potential.

“There are a lot of opportunities for investments in Rwanda. The economy has increased by two digits, inflation is going down and the exchange rate of foreign currency is stable. So there is a package of incentives for our private sector to invest in Rwanda,” the envoy stated, adding that Rwanda’s young, skilled and progressive population was an added advantage to investors.

At the same time, Ambassador Musa Dafalla noted that there were many areas of collaboration in Sudan where Rwandan investors can tap into.

However, he pointed out that some of these collaborations have been hampered by the ongoing war, which he expressed confidence would be over soon.

“Sudan, we are number six in the continent in terms of GDP. We are number three in terms of total area, measuring 1 million square kilometers. Before the war two years ago, our GDP was $ 52 billions. We have untapped natural resources. We have a big fertile agricultural land. We have a population of 45 million.

“We have very skilled labour. For example, we have almost 50 universities. Our graduates from the faculty of medicine produce 5000 graduates every year. So you can imagine the size of the economy and how active the private sector is. Unfortunately, the war disrupted the growth process. But very soon, it will be over,” said the ambassador.

He noted that once normalcy returns in Sudan, Rwandan investors could explore huge investments in the country.

“Sudan will come back to the right track. Right now, we are preparing the ground for the private sectors of each country to work together. When circumstances come back to normal, Sudan will have a big share of the economy and a big volume of trade exchange. I would like to emphasize that we have real potential to do business together,” added the ambassador.

“We have real incentives, we have real interest in joining hands to work together for the best interest of the private sectors as well as for both countries to work together.”

Abdoul Karim Icyihubuye, the First Secretary of the Rwandan Embassy in Sudan, also expressed his optimism that the power struggle in Sudan, pitting leaders of the Sudanese Armed Forces (SAF) and Rapid Support Forces (RSF), will be resolved to create a conducive environment for business.

“We are sure this [conflict] is going to be resolved very soon so that we can continue to do business between Rwanda and Sudan. We have a lot of products to export to Sudan and there are many products we can import from Sudan,” said Icyihubuye.

On behalf of the Rwandan investors, Shyaka Michael Nyarwaya, the Commissioner of Political Integration International Relations at Pan African Movement Rwanda, welcomed collaborations with the Sudanese business community, saying there would be mutual benefit if the two sides worked together.

“We are going to have MoUs, we are going to have shareholders in our companies, or we can do shareholding in companies. We cannot take this for granted,” said Nyarwaya, who has interests in the logistics sector.

According to the Central Bank, Rwanda’s economy is projected to remain strong and resilient with the country’s GDP expected to grow by 6.6 per cent in 2024 after recording a remarkable growth of 8.2 per cent to hit $35 billion last year.

Foreign investments registered in Rwanda last year grew by 50 per cent to hit $2.4 billion (RWF 3 trillion)

A recent report from the Rwanda Development Board (RDB) shows that the investments are expected to create more than 40,000 jobs in the next five years.

The company was established in July last year following a partnership between Kenya’s electric bus pioneer, BasiGo, and Rwanda’s AC Mobility, popular with the Tap&Go transport service.

Currently, the company’s electric bus service is in the pilot phase in Kigali, with four electric buses on the road since November 23, 2023. The company operates a charging station at Magerwa.

According to the Rwanda Development Board (RDB), BasiGo aims to deploy 100 e-Buses on Rwandan roads between 2024 and 2025, before further expanding the fleet to 200 by 2026.

RDB is a government institution, mandated to accelerate Rwanda’s economic development by enabling private sector growth.

The government aims to convert 20 per cent of the public bus fleet to electric by 2030.

Last year, RDB welcomed the BasiGo and AC Mobility partnership, terming it as a cost-effective and sustainable alternative to diesel buses.

“This partnership of public transport technology providers in the region will accelerate decarbonization of the sector in Rwanda while also alleviating the current public transport shortage. RDB is intentional in its support towards this investment and growing a thriving market for electric mobility solutions in Rwanda,” said Clare Akamanzi, who served as RDB CEO from February 2017 to September 2023.

BasiGo was founded in Kenya in 2021.

Before establishing its second market in Rwanda, the company led the introduction of electric buses in Nairobi’s public transport fleet.

The company has deployed 19 electric buses across various routes in the capital Nairobi. It aims to grow the fleet to 1,000 buses across Kenya, Rwanda, Uganda and Tanzania in the next three years.

The firm offers electric buses to private bus operators through a mileage-based leasing model dubbed Pay-As-You-Drive, which makes electric buses affordable for private bus operators to purchase and use.