Rwanda’s economy grew by 8.9 per cent in 2024 compared to the previous year, driven largely by strong performances in the services, agriculture, and industry sectors.

The growth is contained in the latest data released on Wednesday, March 19, by the National Institute of Statistics of Rwanda (NISR).

Yusuf Murangwa, the Minister of Finance and Economic Planning, maintained that the growth reflects robust quarterly gross domestic product (GDP) expansions of 9.7 per cent in the first quarter, 9.8 percent in the second quarter, 8.1 per cent in the third quarter, and 8 per cent in the fourth quarter.

“Our economy has been performing well since the first quarter of 2024, allowing for an 8.9 per cent growth on an annual basis,” Murangwa told the press shortly after announcing the numbers.

At current market prices, Rwanda’s GDP was estimated at Rwf18.785 billion, up from Rwf16.626 billion in 2023.

Murangwa noted that the services sector remained the dominant contributor to the economy, accounting for 48 per cent, followed by agriculture at 25 per cent and industry at 21 per cent.

In terms of sectoral growth, agriculture expanded by 5 per cent, while industry and services grew by 10 per cent each.

“Our agriculture sector continues to recover from previous modest performances, and we are seeing the sector grow at a much higher rate,” he added.

The strong performance in domestic agriculture played a crucial role in stabilising inflation, which is currently around 6 per cent, compared to a double-digit level in the same period in 2023.
“Within agriculture, food crop production increased by 5 per cent due to the good harvests from both agricultural seasons. Season A harvest increased by 8 per cent, while Season B's harvest grew by 2 percent. However, export crop production decreased by 1 per cent,” the statistics body reported.

According to NISR data, private final consumption expenditure accounted for 70 per cent, government final consumption expenditure for 17 per cent, and gross capital formation for 21 per cent.

Optimism ahead

According to Minister Murangwa, the government remains “very confident” in the 2025 growth projection of 7 percent, despite ongoing regional and geopolitical tensions.
He stated that while the current landscape presents challenges, they remain manageable, and the government stands ready to intervene when necessary to maintain economic stability.

“We are very optimistic and extremely confident in maintaining economic stability. We see no major dramatic changes happening due to the current situation in the region and beyond. These challenges are confined in the sense that we do not see widespread effects on the larger economy,” Murangwa said.

He added, “Even if we encounter bumpy seasons in sectors like agriculture, it is still very possible to achieve the projected growth despite the setbacks.”

Murangwa also emphasised that despite reductions in development aid from certain partners, the impact on Rwanda’s economic trajectory “remains confined.”

This, he asserted, is primarily due to the National Strategy for Transformation (NST2) agenda, which reflects the country’s diverse economic structure and commitment to self-reliance.