The government is currently facing a shortfall of nearly 400,000 jobs to meet the targets outlined in the National Strategy for Transformation (NST1), a seven-year plan aiming to establish 1.5 million decent jobs by mid-2024.
Speaking at a Private Sector Federation (PSF) retreat on Thursday, December 21, Richard Niwenshuti, the Permanent Secretary at the Ministry of Trade and Industry (MINICOM) said some 1,138,871 jobs have been created in the past six years, with 94 per cent originating from the private sector.
According to Niyonshuti, this is a major feat given the economic challenges faced during the last five years, including the COVID-19 pandemic that paralysed the economy for two years and other external shocks like the war between Russia and Ukraine, among others.
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While recognising the government’s efforts to create jobs, he emphasised the pivotal role of the private sector in achieving set targets. He urged players in the private sector to continue contributing towards this.
"There is no sustainable development without the private sector, and we cannot reach the targets we set as the government without their involvement,” he noted.
Faustin Mwambali, Director of Labour Research and Employment Promotion at the Ministry of Public Service and Labour (MIFOTRA), also stressed the importance of private sector investment in various areas to foster job creation.
He appealed to the private sector to not only contribute to job creation but also invest in building the capacity of workers. This, he argued, would elevate production levels, benefiting both workers and the nation.
A labour force survey conducted by the National Institute of Statistics of Rwanda (NISR) in the third quarter of 2023 revealed that the working-age population (16 years and above) stood at approximately 8.1 million. Of this, 3,972,193 were employed, while 874,876 were unemployed.
The survey noted that the proportion of the working-age population engaged in employment or subsistence agriculture was 68.2 per cent in August 2023, a slight decrease from the previous year (68.6 per cent in August 2022).
Key sectors experiencing significant growth in the number of workers included wholesale, retail, and repair of motor vehicles and motorcycles, witnessing 180,637 new workers. Construction and transportation and storage also reported increases of 89,465 and 64,846 new workers, respectively.
Françoise Mubiligi, Acting PSF Chairperson, commended the private sector for its progress in recent years. She highlighted transformations in public transport, with the number of companies increasing substantially. For instance, in 2000, there was one public transport company – ONATRACOM – with a few large buses and around 18 minibuses. By 2021, numerous new companies had emerged, resulting in more than 2,400 coasters, 6,000 minibuses, and over 430 large buses.
Mubiligi also cited advancements in other sectors, such as cross-border transport, which saw an increase from 3,450 trucks in 2012 to 11,397 in recent times. In the health sector, private investors contributed to the construction of eight hospitals in 2019, along with 23 dispensaries and up to 149 polyclinics. She expressed optimism that further progress is on the horizon.