Rwanda's economy saw significant growth in 2024, with a real GDP increase of 8.9%, surpassing the prior year's 8.2%. The World Bank's Rwanda Economic Update (REU), released today, noted the country's resilience amid global challenges, steered by strong private consumption, substantial investment, and notable performances in various sectors. This growth spurred the creation of over half a million new jobs year-on-year, marking a recovery in structural transformation, particularly in the services sector.
Agriculture remains a pivotal part of Rwanda’s economy, employing 40% of the workforce and contributing 27% to GDP. "Over the last decade, agricultural income has significantly increased, reaching $419 million. Production has diversified beyond traditional cash crops, like coffee and tea, to include high-value commodities such as vegetables and fruits," stated Peace Aimee Niyibizi, World Bank Senior Country Economist for Rwanda. She added that the sector has potential for greater growth.
The 24th edition of the REU, themed Modernizing Agriculture to Accelerate Structural Transformation in Rwanda, calls for increased investment in agricultural infrastructure to boost productivity and market access. It advocates for market-driven production systems to encourage investments and generate employment opportunities along agricultural value chains. Although agricultural exports constitute 48% of Rwanda's total goods export revenues, trade remains susceptible to price changes and limited regional market integration.
"Rwanda’s agricultural sector is fundamental to achieving the country’s economic and developmental goals,” said Sahr Kpundeh, World Bank Country Manager for Rwanda. “By investing in value addition and modernizing production systems, Rwanda continues its agricultural transformation journey."
The REU suggests strengthening seed systems and regulatory reforms to draw private investment, along with aligning policies with regional opportunities in the East African Community (EAC) and the African Continental Free Trade Area (AfCFTA), to build a lasting, competitive, and sustainable agri-food sector.