Rwanda’s economy grew by 7.9% in the first quarter of 2022 continuing the recovery that started last year.

According to figures released by the Institute of Statistics of Rwanda (NISR) earlier today, GDP at current market prices was estimated to be Frw 3,025 billion, up from Frw 2,588 billion in the first quarter of 2022.  Services contributed 47%, agriculture 23%, industry contributed 22% while net direct taxes accounted for 8% to GDP.

In terms of growth, agriculture grew by 1% while industry and services registered 10% and 11% growth respectively. The dismal agriculture sector growth is attributed to poor performance of season A, caused by adverse weather. Food crops production decreased by 1% while export crops decreased by 14%. Growth in the industry sector was boosted by 16% increase in mining and quarrying, 11% in manufacturing and 6% in construction activities.  Overall performance of the service sector is attributed to various sub-sectors growths such as wholesale and retail trade which increased by 7% and transport activities by 19%.

Despite significant growth of the service and industry sector, agriculture remains an important component of Rwanda’s economic structure. “Agriculture is very important part of our economy.  Is industry overtaking agriculture in terms of GDP contribution? Not yet. However, it is encouraging to see services and industry positively continue to grow. Over long term the objective is to see our economic structure transform from agrarian to industry and services driven,” Dr. Uzziel Ndagijimana, the Minister of Finance and Economic Planning pointed out.

Unpredictability of the agriculture sector caused by its dependency to climatic conditions continues to apply constant inflationary pressures. However, Ivan Murenzi, NISR deputy Director General believes these can be counteracted by policies instituted by Government such as, land consolidation, use of fertilizers as well as heavy investments in irrigation.

Government has invested heavily in transforming the agriculture sector to contribute to the overall economic development. For instance, over the past five years, it has contributed at least 10% of total budget into agriculture annually, which is in line with the Malabo Declaration on committing to The Comprehensive African Agriculture Development Program (CAADP)