Rwanda’s Nst1 Initiative: 1.3 Million Jobs Created and Exports Doubled in Seven Years

Rwanda’s economy has seen a remarkable transformation in recent years, with exports more than doubling and the creation of over 1.37 million jobs under the National Strategy for Transformation (NST1). Prime Minister Edouard Ngirente shared these impressive statistics during a briefing to Parliament on the achievements of the seven-year government program.

The increase in exports from just over $1 billion in 2017 to more than $2.4 billion in 2023 is attributed to government strategies aimed at recovering from the impact of the Covid-19 pandemic, particularly the Made in Rwanda program. Ngirente highlighted the importance of facilitating both foreign and Rwandan investors engaged in exports to drive this growth.

In the trade and industry sector, targets set under the NST1 included boosting domestic industries, promoting trade with neighboring countries, and enhancing mineral trade. The establishment of various factories, such as those for pharmaceuticals, construction materials, and packaging, contributed to the sector’s success. The manufacturing sector now accounts for 22% of Rwanda’s GDP, exceeding the initial target of 21.7%.

Additionally, Rwanda’s GDP surged from over Rwf7 trillion in 2017 to more than Rwf16 trillion in 2023, with an average annual economic growth of 7%. Despite a 3.4% dip in 2020 due to the Covid-19 pandemic, the industry sector played a significant role in job creation, particularly for youth and women.

Mineral export revenues also saw a substantial increase from about $373 million in 2017 to over $1.1 billion in 2023. By investing in value addition for minerals before export, Rwanda aims to maximize revenues. Four mineral processing factories have been established to add value to these resources, with ongoing efforts to further develop the sector.

Overall, the creation of more than 1.37 million jobs, although slightly below the target of 1.5 million, demonstrates significant progress. The impact of the Covid-19 pandemic slowed down job creation efforts, but Ngirente remains committed to providing employment opportunities for the country’s youth. Rwanda’s economic success story is a testament to the government’s strategic initiatives and commitment to sustainable growth.