This growth is attributed to a robust recovery from the COVID-19 pandemic and a strong rebound in tourism. The services sector, encompassing a wide range of activities like transportation, communication, and hospitality, has been a key driver of Rwanda’s economic growth. This sector has seen significant investment in infrastructure, technology, and human capital, leading to increased productivity and competitiveness.
Yusuf Murangwa, the Minister of Finance, said that the relatively low economic growth projection factors in uncertainty of global shocks, and it would be revised considering performance over the next two quarters. “Given all the planning we do and the history of climate shocks, our position is conservative because of some unpredictable aspects of the economy, but from the quarterly growth rate, we are very optimistic,” he explained. ALSO READ: Economic Growth momentum expected to continue in 2024 While Rwanda’s services sector remains a key contributor to the country’s economic growth, increasing by 10 per cent, agricultural performance also saw an increase of 7 percent, mainly attributed to a strong harvest of season A of 2024 which increased food crop production by 8 percent.
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Industry also experienced growth of 15 percent, primarily driven by an increase in construction activities, and manufacturing which increased by 18 percent and 17 percent, respectively. However, mining and quarrying activities declined by 2 percent during the period under review, with notable reductions in exports of coltan and cassiterite of 8 percent and 9 percent, respectively. Manufacturing drives industry performance According to the new figures, manufacturing growth was buoyed by 18 percent increase in food processing, 28 percent in textiles, clothing, and leather. Metal products, machinery, and equipment manufacturing increased by 29 percent while production of chemicals, rubber, and plastic products rose by 20 percent.
Murangwa noted that the positive trajectory across sectors should be maintained and built on to achieve the recently approved second National Strategy of Transformation (NST2).
