Growth and Development in Rwanda

In this growth and development profile video, we look at the fast-growing country of Rwanda.

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OVERVIEW

The economy is entering a crucial stage of progress as they reach the twenty-fifth anniversary of the genocide in 1994.

As a result of rapid growth over the past 25 years, per capita income in landlocked Rwanda has tripled but despite this, Rwandan living standards measured by per capita GNI (PPP adjusted) remain below the average for sub Saharan Africa. The government under President Kagame is committed to maintaining a high, inclusive and sustainable rate of growth which offers a huge number of opportunities but also raises significant policy challenges.

Faster growth not only helps to lift people more quickly out of extreme poverty but is also usually accompanied by better health and education outcomes (lifting their HDI score) as well as a wider range of – and better access to – goods and services. Higher incomes resulting from faster growth also usually reduce socio-political instability and make it easier to introduce structural supply-side reforms, creating a virtuous cycle. Rwanda’s growth rate has averaged 7.8 percent since 2000. This is the third highest in sub Saharan Africa and exceeds the average of emerging Asia. Can it be sustained in the years to come?