Rwanda recorded a robust economic growth rate of 8.9 per cent in 2024 yet still faces an annual financing gap of $2.9 billion to implement its national development goals, according to a new African Development Bank (AfDB) report. Launched on Tuesday, June 24, the 2025 Country Focus Report (CFR), titled “Making Rwanda’s capital work better for its development,” shows that inflation dropped sharply to 1.8 per cent, poverty declined to 27.4 per cent, average life expectancy rose to 70 years, and access to clean water and electricity increased to 90 per cent and 72 per cent, respectively. ALSO READ: Rwanda’s inflation decreased three-fold in 2024 - Central Bank Governor Stella Nteziryayo, Chief Economist at the Ministry of Finance and Economic Planning, said, “As we move forward with the National Strategy for Transformation (NST2), this report shows how we need to be innovative in addressing development challenges and make the best use of our resources.” She added, “We have passed new tax measures to tap into domestic resources, but as we continue to pursue the Sustainable Development Goals, we must deliver faster, more creatively, and in a coordinated manner.” ALSO READ: What you need to know about Rwanda’s new tax reforms While Rwanda has shown resilience in key sectors such as construction, tourism, agriculture, and mining, the AfDB report also highlighted ongoing challenges including youth unemployment, malnutrition, and the large informal sector. To bridge the financing gap, the report recommends deepening tax reforms, expanding financial markets, investing in green and digital economies, and strengthening institutional capacity. It also emphasises Rwanda’s potential to leverage its natural capital, such as forests, minerals, and carbon markets for climate-aligned financing. Aissa Toure-Sarr, the AfDB’s Country Manager, said the report provides “concrete, country-specific recommendations to unlock domestic resources and sustain structural transformation.” She described it as “a vital tool to inform evidence-based policy dialogue in Rwanda and attract long-term investment.”
