One year and seven months after the government launched the second National Strategy for Transformation (NST2), the Prime Minister has noted encouraging progress in key areas, including economic growth, job creation, infrastructure development, and social welfare.

The five-year strategy, which builds on the achievements of NST1, is designed to accelerate Rwanda’s journey towards Vision 2050, a long-term blueprint aimed at achieving sustainable economic growth, prosperity, and improved living standards for all citizens.

Presenting progress of NST2 during the National Umushyikirano Council on Thursday, February 5, at Prime Minister Justin Nsengiyumva highlighted notable milestones achieved since the strategy’s implementation began in the 2024/2025 fiscal year.

He noted that NST2 development programme, a sequel to the seven-year NST1, is anchored on raising Rwanda’s per capita income from $1,040 in 2024 to $1,370 by 2029.

"For over a year now, we have invested significant effort in implementing this programme, and the progress made so far gives us confidence that we are moving in the right direction,” Nsengiyumva told the council chaired by President Paul Kagame at Kigali Convention Centre.

Strong economic growth

According to Nsengiyumva, Rwanda’s economy has demonstrated strong resilience and expansion. Economic growth rose from 8.2 percent in 2023 to 8.9 percent, exceeding the projected 8.3 percent. The growth momentum continued in 2025, with the economy expanding by an average of 8.7 percent across the first three quarters.

Sector performance showed balanced contributions. Agriculture grew by an average of 7 percent, up from 5 percent in 2024. The industrial sector recorded 10 percent growth, while services expanded by an average of 9 percent.

The Prime Minister attributed this progress to increased access to finance, which also contributed to a reduction in unemployment from 16.8 percent in 2024 to 11.7 percent by the end of 2025. He noted that unemployment stood at 24.3 percent in 2022 following the Covid-19 pandemic.

NST2 aims to create 250,000 off-farm jobs annually. Since early 2024, Rwanda has created more than 800,000 jobs, with about 93 percent generated outside agriculture.

Trade, investment, and savings on the rise

Rwanda’s export performance has also improved significantly. Export revenues increased from $3.5 billion in the 2023/2024 fiscal year to $5.7 billion in 2024/2025, a 62.8 percent increase. The country targets $7.3 billion in exports by the end of NST2.

The Prime Minister noted that increased exports have helped narrow the trade deficit and strengthen Rwanda’s economic self-reliance. Domestic tax revenue also grew from Rwf2.7 trillion to Rwf3.2 trillion over the same period.

Savings levels improved from 12 percent to 15.6 percent of GDP, supported by initiatives such as the EjoHeza long-term savings scheme, which accumulated Rwf52.8 billion in 2024/2025. Meanwhile, investment inflows rose from $2.2 billion to $2.7 billion, with the government targeting $4.6 billion annually by 2029.

Boosting agriculture and industrial production

Agriculture, which remains a backbone of Rwanda’s economy, recorded gains driven by increased fertiliser subsidies and climate-resilient farming strategies. Fertiliser usage rose to 72 kilogrammes per hectare annually, up from 32 kilogrammes in 2017 and above the Sub-Saharan Africa average of 25 kilogrammes per hectare. The country aims to reach 94.6 kilogrammes per hectare by 2029.

Efforts to expand arable land, terraces, and livestock development have also contributed to improved productivity. Milk production, for example, rose from 700 million litres in 2017 to over one billion litres in 2025.

"The government is also prioritising industrial growth by promoting local manufacturing and value addition, particularly in mining, agro-processing, and construction. Mining output grew by 12 percent in 2024, while industrial parks in Kigali and other regions continue to attract investment and create employment,” he said

Tourism and infrastructure expansion

According to the premier, tourism remains a key contributor to foreign exchange earnings, generating $647 million in 2024, up from $620 million the previous year. Rwanda aims to reach $1 billion in tourism revenues by 2029, supported by investments in infrastructure such as the new Kigali International Airport and the continued growth of the Meetings, Incentives, Conferences and Exhibitions (MICE) sector, which generated $108 million in 2024/2025.

"Infrastructure development has also progressed significantly. Electricity access has reached 82.9 percent of households, while clean water coverage now stands at 84 percent in all cells, up from 80 percent in 2023/2024. Key energy projects, including Nyabarongo Hydropower II, methane gas extraction in Lake Kivu, and the expansion of the Gisagara peat power plant, are expected to further boost electricity generation,” he said.

Road development continues to improve connectivity, with over 4,200 kilometres of tarmac constructed or rehabilitated, facilitating trade and access to markets. Public transport has also improved with new reforms, including the introduction of the state-owned company EcoFleet Solutions.

Environmental protection and social welfare

Environmental conservation remains another key priority under NST2. Rwanda reduced air pollution by 28 percent in 2024/2025, while national reforestation efforts saw over 26 million trees planted towards a target of 72 million.

Progress has also been made in healthcare. Maternal mortality declined from 105 to 97 deaths per 100,000 live births, while under-five mortality dropped from 45 to 39.4 deaths per 1,000 live births, surpassing the annual target. The government continues to expand healthcare infrastructure and train additional health professionals.

In education, reforms are focusing on aligning training with labour market demands. Technical and vocational education enrolment is targeted to increase from 38 percent to 60 percent, supported by the establishment of vocational training centres across all districts and curriculum reforms at Rwanda Polytechnic. School dropout rates have also declined from 7.5 percent to 5.2 percent.

Strengthening governance and service delivery

Governance reforms are equally central to NST2. Citizen satisfaction with public services currently stands at 71.7 percent, with the government targeting 90 percent. Digital service delivery platforms such as IremboGov and the improved One-Stop Centre are expected to enhance efficiency and transparency.

In the justice sector, efforts to reduce case backlogs have yielded results, with clearance rates reaching 53 percent during the 2024/2025 judicial year, although this remains above the NST2 target of 30 percent.

As Rwanda moves further into NST2 implementation, Prime Minister Nsengiyumva emphasised the importance of sustained productivity and collective effort.

"In some areas, we have exceeded our targets, which strengthens our confidence that through continued collaboration and innovation, Rwanda will achieve the transformation it seeks,” he said.