Rwanda’s economy experienced an 8.1% growth in the third quarter of 2024, with its market value reaching Rwf4,806 billion, up from Rwf4,246 billion in the same period of 2023. This information was released on December 17 by the National Institute of Statistics Rwanda (NISR) in collaboration with the Ministry of Finance and Economic Planning.
The economic growth follows impressive performances of 9.7% in the first quarter and 9.8% in the second quarter of 2024. Despite these figures, Finance Minister Yusuf Murangwa stated that the overall annual growth rate is projected at a cautious 6.6%. Rwanda’s economy recorded an 8.2% growth rate in 2023.
According to the International Monetary Fund (IMF), Rwanda’s economy is expected to grow by 7% in 2024, making it the fastest-growing economy in the region. Minister Murangwa explained that the growth seen in the third quarter aligns with expectations due to positive momentum from late 2023. He noted that projections are conservative and consider possible challenges, such as the impact of climate change on agriculture.
Murangwa mentioned that more concrete projections for 2025 will be available once the fourth-quarter figures are released in early 2025. However, he indicated no major changes are expected, suggesting a positive outlook for the economy.
Sector Performance
The growth in Q3 2024 was primarily driven by three key sectors:
- Services: This sector recorded a 10% increase, contributing 49% to the GDP. Wholesale and retail trade led the way with a 19% rise, followed by hotels and restaurants (17%), financial services (15%), and transport (8%).
- Industry: Industry grew by 8%, contributing 20% to the GDP. Mining and quarrying activities saw a significant increase of 26%, driven by higher exports of cassiterite (up 27%), coltan (up 42%), and wolfram (up 15%). Manufacturing and construction activities both recorded a 5% rise. The production of chemicals, rubber, and plastic products rose by 20%, while metal products, machinery, and equipment grew by 14%, and textiles, clothing, and leather goods increased by 11%. However, food processing declined by 1%, contrasting with a 16% increase in Q3 2023.
- Agriculture: This sector grew by 4% and contributed 24% to the GDP. Food crop production rose by 2%, despite mild harvests in seasons B and C of 2024. Export crops increased by 16%, driven by a 22% increase in coffee production. However, tea production declined by 10% due to heavy rains.
With services, industry, and agriculture all making positive contributions, Rwanda’s economic performance in Q3 2024 demonstrates steady progress despite global challenges.