Rwanda Registers 8.1% Economic Growth in Third Quarter of 2024

December 17, 2024: Rwanda's economy grew by 8.1% in the third quarter of 2024, following increases of 9.8% in the second quarter and 9.7% in the first quarter. This brings the average growth rate for the first three quarters of 2024 to 9.2%. The growth was primarily driven by strong performances in the services and industrial sectors, while agriculture showed moderate growth.

According to data released by the Institute of Statistics of Rwanda, the GDP at current market prices was estimated at Frw 4,806 billion, up from Frw 4,246 billion in the third quarter if 2023. Contributions to GDP were as follows: services sector (49%), agriculture sector (24%), industry sector (20%), and net direct taxes (7%).

The Minister of Finance and Economic Planning, Yusuf Murangwa, stated that the growth aligns with government expectations. “Our economy has remained stable and resilient in the face of global shocks and has maintained strong momentum since the end of last year. While we await the fourth-quarter results, an average growth of 9.2% over the past three quarters suggests a positive outlook ahead.

The agriculture sector saw an overall growth rate of 4%, driven by a 2% increase in food crop production, supported by the mild harvests of Seasons B and C of 2024. Export crops performed particularly well, increasing by 16%, largely due to a 22% rise in coffee production. However, tea production declined by 10% compared to Q3 2023.

The industrial sector experienced an 8% growth rate, primarily fueled by a 26% increase in mining and quarrying activities. Exports in this subsector saw significant increases, with Cassiterite rising by 27%, Coltan by 42%, and Wolfram by 15%. Manufacturing activities grew by 5%, with notable increases in specific areas: chemicals, rubber, and plastic products (up 20%); metal products, machinery, and equipment (up 14%); and textiles, clothing, and leather goods (up 11%). However, food processing saw a decline of 1%, contrasting with the 16% growth recorded in the third quarter of 2023. Construction activities also recorded a growth of 5%.

The services sector achieved an impressive growth rate of 10%. Within this sector, wholesale and retail trade grew by 19%, transport activities increased by 8%, and hotel and restaurant services expanded by 17%. Financial services saw a growth of 15%, while information and communication services rose by 19%. Public administration activities increased by 10%, health and social work services grew by 8%, and education activities rose by 2%.