Rwanda profile

Demography and Health

Rwanda presents a youthful, growing population anchored by a total of about 14.26 million people in 2024. The country’s population density and relative size support a dynamic domestic market, yet the demographic profile also imposes demands on health, education, and employment systems. Life expectancy at birth stands at 67.8 years (2023), a level that reflects improvements in health services but remains below global leaders, signaling ongoing challenges in aging care, chronic disease management, and preventive health. The crude birth rate is 28.3 per 1,000 people (2023), indicating a continued high fertility regime that sustains population growth and places pressure on maternal health and children’s services. The crude death rate is 5.93 per 1,000 people (2023), implying ongoing epidemiological transitions where infectious disease control, maternal and child health, and non-communicable diseases require balanced attention. Under-5 mortality is 40 per 1,000 live births (2023), underscoring persistent child health and nutrition concerns that align with the notable prevalence of undernourishment at 31.4% of the population (2022). These health indicators highlight both progress and vulnerability: Rwanda has expanded health access and outcomes in several domains, but high early childhood undernourishment and a notable birth rate demand sustained investments in nutrition, maternal care, vaccination, and basic health infrastructure. The country allocates around 7.88% of GDP to current health expenditure (2022), with domestic general government health expenditure per capita on a PPP basis at about $79.2 (2022). Together, these figures suggest a health system in expansion, striving for broader coverage and quality, yet still facing resource constraints that affect service delivery, outreach, and resilience against shocks. On the labor front, unemployment is 12.4% (2023), indicating a considerable portion of the labor force not earning formal employment, which can have implications for productivity, income distribution, and social stability. Net migration in 2024 is negative by 15,582 people, signaling outflows that could reflect pursuit of opportunities abroad and potential skill leakage, even as remittance flows can cushion some macroeconomic effects. In security terms, political stability and absence of violence remain a critical context for health investments and service delivery, as the region’s stability directly affects health program continuity, supply chains, and workforce retention.

Economy

Rwanda’s economy features a modest income level with GDP per capita at around $1,000 (current US$, 2024) and a GDP per capita at purchasing power parity (PPP) of about $3,711 (2024). This places the country among lower-income economies, where growth dividends must be pursued through productivity gains, diversification, and targeted investment. The inflation rate stands at 1.77% (2024), signaling price stability favorable for households and business planning, though it must be viewed in the context of currency dynamics and external price pressures. The export side accounts for roughly 30.8% of GDP (2024), while imports consume about 39.1% of GDP (2024), painting a picture of an open but import-reliant economy that relies on external inputs for development and consumer goods. The current account balance is negative at 11.5% of GDP (2023), reflecting a financing gap that requires continued attention to export competitiveness, capital inflows, and prudent fiscal management. The country’s openness to investment is evidenced by net foreign direct investment inflows at 3.2% of GDP (2023), a level that supports capacity building and technology transfer but also signals room for broader investment mobilization. Research and development expenditure amounts to 0.794% of GDP (2023), placing Rwanda among relatively stronger performers in Africa for innovation intensity, and aligned with testimonies of a policy emphasis on knowledge-based growth. On governance dimensions, regulatory quality is measured at 0.125 and the rule of law at 0.205, with political stability at 0.108; these values suggest some institutional fragility or transitional dynamics that can influence business confidence and long-term investment planning. Control of corruption is comparatively higher at 0.672, and government effectiveness is 0.388, indicating a mixed governance environment with pockets of effectiveness and areas needing reform to improve predictability, contract enforcement, and public service delivery. The country also hosts high-technology exports valued at about $6.8 million (2022), and the number of patent applications by residents stands at 14 (2021), signaling emerging capabilities in science and technology that can underpin future growth, particularly if supported by stronger R&D ecosystems and favorable policy incentives. The high share of renewable energy consumption at 79.9% of total final energy consumption (2022) points to a low-carbon energy trajectory that can lower vulnerability to fossil fuel price swings and bolster sustainable growth. Overall, Rwanda’s economy shows a trajectory of openness and strategic investments in knowledge, infrastructure, and governance reforms, but remains challenged by a relatively low income level, a negative current account, and the need to translate health and education improvements into broad-based productivity gains.

Trade and Investment

Trade and investment dynamics in Rwanda reveal an economy that is increasingly integrated with global markets, yet still balancing domestic capacity with external linkages. Exports of goods and services account for 30.8% of GDP (2024), while imports constitute 39.1% of GDP (2024), underscoring a trade regime that relies on external inputs and intermediate goods, which can influence competitiveness and vulnerability to external shocks. The current account deficit of 11.5% of GDP (2023) indicates ongoing financing needs, but the presence of net foreign direct investment inflows at 3.2% of GDP (2023) suggests continued investor interest, potentially in sectors such as energy, infrastructure, agribusiness, and services. The economy also benefits from a modest inflation environment at 1.77% (2024), which supports price stability in trade and investment planning. High-technology exports are relatively modest in value (about $6.8 million in 2022), while resident patent activity is limited (14 filings in 2021), signaling early-stage technology commercialization that could be amplified through improved intellectual property frameworks, research ecosystems, and private-sector linkages. The combination of a relatively open trade stance, a growing innovation spine (R&D expenditure at 0.794% of GDP in 2023), and improving governance indicators offers a pathway to deeper integration and higher-value exports, provided policy environments can sustain investment, logistics efficiency, and access to finance for firms engaged in export-oriented activities. The tax, tariff, and regulatory environment—alongside infrastructure and energy reliability—will continue to shape Rwanda’s ability to scale export sectors, attract more FDI, and diversify away from traditional sectors toward higher productivity industries.

Governance and Institutions

Rwanda’s governance indicators reflect a nuanced landscape of strengths and challenges. Control of corruption stands out with a relatively robust score of 0.672, suggesting credible anti-corruption measures and a degree of trust in public institutions. Government effectiveness sits at 0.388, signaling functional public administration with room to improve efficiency, service delivery, and policy implementation. Regulatory quality is 0.125 and the rule of law 0.205, indicating that while institutions exist and operate, there is meaningful scope for strengthening legal frameworks, contract enforcement, and predictability in the business environment. Political stability and absence of violence/terrorism register at 0.108, a value that hints at fragility or vulnerability to political shocks, though this must be interpreted within regional contexts and recent policy developments. Taken together, these indicators suggest a governance configuration with notable anti-corruption gains and some administrative capability, yet structural reforms in regulatory coherence, legal certainty, and political stability are essential to support sustained private sector growth, long-term investment planning, and social trust. The governance landscape also interacts with innovation and development priorities: Rwanda’s relatively strong emphasis on research and development (0.794% of GDP in 2023, rank 6 globally) and a pattern of improving governance outcomes can create conditions for reforms that strengthen property rights, improve public finance management, and foster a more predictable investment climate. The balance of these indicators indicates progress and resilience, but the path toward higher productivity and inclusive growth will depend on continued improvements in rule of law, regulatory clarity, and the protection of civil and political rights alongside ongoing anti-corruption efforts.

Infrastructure and Technology

Infrastructure and technology indicators paint a picture of a country investing in connectivity and knowledge-based growth, while still navigating gaps in digital access and industrial capacity. The Logistics Performance Index, measuring quality of trade and transport-related infrastructure, stands at 2.9 (2022) with a high rank positioning of 17, suggesting that Rwanda has relatively strong logistical capabilities for its income level, including customs, logistics efficiency, and transportation networks that support export and import flows. Internet penetration is 34.2% of the population (2023), signaling substantial digital reach but also a significant portion of the population still offline, which constrains e-commerce, online services, and digital education without targeted inclusion efforts. High-technology exports amount to about $6.8 million (2022), and resident patent applications sit at 14 (2021), pointing to nascent but growing innovative capacity that could be scaled through stronger incentives, incubators, and collaboration between universities, research institutes, and the private sector. Research and development expenditure is 0.794% of GDP (2023), a noteworthy level for a lower-income economy and among the higher shares in Africa, indicating a policy commitment to knowledge-driven development. Renewable energy consumption comprises 79.9% of total final energy consumption (2022), placing Rwanda among leaders in decarbonizing its energy mix and supporting sustainable growth, particularly with hydropower, solar, and lake-based resources. Environmental resilience is further reflected in a relatively low per-capita greenhouse gas emission of 0.537 t CO2e (2023), reinforcing a growth model that prioritizes low-carbon options. Yet, water stress remains a consideration, with freshwater withdrawal representing 20.2% of available resources (2021), a metric that underscores the need for efficient water management, irrigation, and climate-resilient planning as population and agricultural demand increase. In sum, infrastructure and technology trends suggest a country actively building digital and energy infrastructures, coupling openness to global markets with a strategic emphasis on renewable energy, innovation, and improved logistics—all essential for higher productivity and competitiveness.

Environment and Sustainability

Rwanda’s environmental and sustainability profile reflects a concerted move toward low-carbon development, with renewable energy playing a central role: 79.9% of total final energy consumption comes from renewable sources (2022), highlighting the country’s commitment to reducing fossil fuel dependence and climate vulnerability. Per-capita emissions of greenhouse gases excluding LULUCF stand at 0.537 t CO2e (2023), indicating a relatively low carbon footprint per person, common among developing economies with lower consumption levels and a growing services/agribusiness mix. Despite these positives, the country faces social and nutritional challenges, with the prevalence of undernourishment at 31.4% (2022) signaling significant food security concerns that bear on health, education, and long-term resilience. The mortality rate for children under five remains high at 40 per 1,000 live births (2023), underscoring the need for continual improvement in maternal and child health, nutrition, sanitation, and disease prevention to fully realize sustainable development gains. Water stress indicators show pressure on freshwater resources, with withdrawal at 20.2% of available resources (2021), reinforcing the importance of integrated water resource management, climate adaptation, and agricultural efficiency to safeguard livelihoods. The mix of substantial renewable energy usage, low per-capita emissions, and material nutrition and health challenges paints a nuanced sustainability picture: Rwanda has made meaningful strides toward a greener, more resilient economy, but continued investments in health, nutrition, water, and climate adaptation will be essential to translate environmental gains into broad-based human development outcomes.