Introducing Rwanda

Rwanda is a small landlocked country with a population of over 12 million people. Over the last decade, the country has experienced high economic growth with gross domestic product (GDP) growth averaging about 8%, one of the highest in Africa. Per capita GDP has increased more than threefold, from less than US$ 200 in 1994 to US$ 787 in 2018. The agricultural sector, which accounts for about 28% of the GDP and employs 70% of the population, remains one of the driving forces of the economy, while industry and services generate around 16% and 48% of GDP, respectively.

The Government has implemented various economic and structural reforms over the years, including in the areas of trade, and financial and exchange systems. In 2018, Rwanda ranked second easiest country to do business in Sub-Saharan Africa (World Bank Doing Business Report) and second most competitive country in Africa (Global Competitiveness Report 2017-2018).

The Government’s medium- and long-term development agendas are outlined in several strategic documents, including the National Strategy for Transformation (NST1 2017-2024) and the Rwanda Vision 2050 and its mid-term targets for 2035.

PCP RWANDA

UNIDO has implemented over 130 programmes and projects in Rwanda over the years, in areas of industrial policy, industrial competitiveness and trade capacity-building, poverty reduction, environmental protection, agro-industrial development, energy and resource efficiency, and cleaner production.

In October 2018, the Executive Board of UNIDO approved the development of the Programme for Country Partnership (PCP) for Rwanda. The PCP will support the implementation of the National Strategy for Transformation (2017-2024) and the Government’s “Vision 2050”, with a focus on selected priority areas/sectors. It will also align with and support the United Nations Development Assistance Plan for Rwanda covering 2018-2023.

The tentative priority areas of the PCP are: (i) Integrated agro-industrial parks, particularly for fruits and vegetables; (ii) Livestock value chain development; (iii) Garments; and iv) Industry 4.0. The Government conducted  feasibility studies with UNIDO’s support for potential priority sectors, such as livestock/leather, and textiles and garments, which will also  inform the formulation of the programme. Cross-cutting areas will include technological upgrading to leapfrog in the areas of industrialization, circular economy, and quality control and enhancement.

UNIDO conducted a country diagnostic to help to finalize the PCP priority areas and support the formulation of the PCP for Rwanda. The diagnostic was validated by the Government of Rwanda in 2021, see the press release here.

NATIONAL DEVELOPMENT GOALS

Rwanda’s Vision 2050 aims to ensure high living standards for Rwandan people, reaching upper-middle-income status by 2035 and high-income status by 2050. The PCP will support the achievement of this overarching vision and the implementation of the National Strategy for Transformation (NST1: 2017-2024), in particular its Economic Transformation Pillar which seeks to:

• Create 1.5 million decent and productive jobs over the next 7 years (214,000 annually)
• Promote industrialization and high-value exports (17% annual export growth)
• Modernize and increase the productivity of the agriculture and livestock sectors
• Promote sustainable resource management towards a green economy
• Accelerate sustainable urbanization from 18.4% (2016/17) to 35% by 2024
• Establish Rwanda as a globally competitive knowledge-based economy
• Increase domestic savings and position Rwanda as a financial/investment hub

POTENTIAL PARTNERS

A number of partners have already expressed their interest to support the PCP Rwanda, including the African Development Bank (AfDB), the Government of China, the Government of the United Kingdom of Great Britain and Northern Ireland, the European Union, the Republic of Korea, and the United Nations Development Programme (UNDP).