Rwanda's economy grew by 9.7% in Q1’24

Rwanda's economy witnessed a substantial growth of 9.7 per cent in the first quarter of 2024, according to data released by the National Institute of Statistics of Rwanda. This impressive growth was attributed to the remarkable performance of the services and industry sectors within the country. In an exclusive interview with CNBC Africa, Ivan Murenzi, the Director General of the National Institute of Statistics of Rwanda, shed light on the key factors driving this economic upswing. Murenzi highlighted that the growth for GDP in Q1’24 stood at 9.7 per cent, marking a significant progress when compared to the same period in 2023. He emphasized that the growth was primarily fueled by the agriculture, industry, and services sectors, each of which contributed significantly to the overall economic expansion. Agriculture experienced a growth rate of 7 per cent, with notable increases in the production of key crops such as maize and beans. The director pointed out that favorable weather conditions played a pivotal role in boosting agricultural productivity. On the other hand, the industry sector recorded a growth rate of 10 per cent, driven by advancements in mining and quarrying, construction activities, and manufacturing. Murenzi underscored that these sub-sectors significantly contributed to the overall industrial growth. Furthermore, the services sector witnessed an impressive growth rate of 11 per cent, with key areas like wholesale and retail trade and transport activities demonstrating substantial progress. However, Murenzi highlighted a stagnation in exports, primarily due to a decrease in coffee production during the first quarter. While there was a growth of 21 per cent in tea exports, the lower coffee output impacted the overall export performance. Despite this, the robust performance of non-traditional exports partially offset the decline in coffee exports. When questioned about the impact of this economic growth on the general populace, Murenzi explained that growth brings both short-term and long-term benefits to the people. In the short term, increased agricultural productivity leads to a higher food supply, thereby stabilizing prices and improving consumer purchasing power. Additionally, growth in sectors such as transport and hospitality generates employment opportunities, further benefiting the population. He emphasized that sustained economic growth contributes to enhanced well-being through job security and improved living standards. Looking ahead, Murenzi acknowledged the risks that could potentially hamper Rwanda's economic growth trajectory. He highlighted climate-related uncertainties as a significant challenge, emphasizing the need for effective risk management strategies to mitigate the impact of adverse weather conditions on agricultural productivity. Moreover, he mentioned global events such as disruptions in supply chains and fluctuations in energy prices as additional risks that could affect Rwanda's economic stability. In conclusion, Rwanda's impressive economic growth in the first quarter of 2024 underscores the positive trajectory of the country's economy. With a focus on sustainable growth strategies and effective risk management, Rwanda aims to navigate potential challenges and further enhance the well-being of its citizens.