MINECOFIN predicts state of Rwandan economy by 2050

On 23 December 2019 at 08:03

The Minister of Finance and Economic Planning, Dr. Uzziel Ndagijimana has announced that for “Vision 2050’ to materialize, the economy will have to be growing at a 10% rate per year.

‘Vision 2050 is a set of long-term, income-based goals that aim for upper-middle-income status by 2035 and high-income status by 2050. With this vision, Rwanda has aligned itself with the successful East Asian economies that began their development journey with a similar vision.

Dr. Ndagijimana made the statement on December 20th, 2019 as he was addressing more than 2000 Rwandans during the annual National Dialogue

“Umushyikirano 2019”. He said that in 15 years, Rwanda has set the goal of transitioning to an upper-middle-income status and a high-income status by 2050.

“By 2035, we predicted that our GDP per capita will at least be $4000 per year. That is Rwf 4 million and in 2050, GDP per Capita is expected to rise to $12,000 per year.”

Dr. Ndagijimana said that the vision will require much more effort to be achieved. “We need to use the resources already available since the journey is far from the end. We need to at least have an increase in GDP of 10% per year to achieve that goal. We have made growth in GDP of up to 12% in the past and that is proof enough that we can do better. Industries and the agricultural sector need to Amp up their production capacity and more services need to be introduced through innovation, diversification, and technology.”

He added that for Rwanda to be able to compete on the international market, agricultural yield should be improved to allow food self-sufficiency and also produce for exports. He said that even if a lot of Made in Rwanda industries are being created, production has to increase just so they can also produce for the African or global market.

Yusuf Murangwa, the Director General of the National Institute of Statistics of Rwanda (NISR) said that in the past 18 years, the economy of Rwanda has increased on an 8% rate and says it is an impressive milestone since Rwanda is second on the list of countries with improving economy after Ethiopia.

“Basing on how fast Rwanda has been moving, we expect Rwanda to be the first on the list of fast developing countries in Africa by 2020.”

He said that when you consider the agriculture sector, the annual yield has remarkably increased and in the past 10 years, we did not have most of the industries that are functional now. We are progressing in the hospitality sector, in health, education and financial institutions in a very remarkable way.”

Murangwa said that annual growth in GDP leads to the creation of at least 160,000 jobs outside of the agricultural sector.

“If 160,000 jobs are created for 200,000 graduates every year, it means that 40,000 graduates remain unemployed. There is a large gap we still need to fill.”

“GDP growth should be at least 10% every year with agricultural yield increasing by 8%, industries by 15% and the service sector by 12%”.

Currently, Rwanda is investing more in technology where registering a new business takes only 6 hours while getting land permit has been made easier through online portals.

Dr. Ndagijimana made the statement on December 20th, 2019 as he was addressing more than 2000 Rwandans during the annual National Dialogue