Prime Minister Edouard Ngirente has underscored Rwanda's strategic priorities as the nation begins implementing the second National Strategy for Transformation (NST2), its ambitious five-year roadmap for inclusive and sustainable development. Ngirente emphasised that Rwanda's ultimate goal is to uplift the lives of all its citizens while laying a robust economic foundation. He delivered these remarks during a press briefing held in Kigali on Friday, December 6, 2024. “We successfully concluded the first phase of the National Strategy for Transformation (NST1) and have now embarked on NST2. Despite significant challenges, including the economic impact of the COVID-19 pandemic, we achieved remarkable progress,” he told the press. The Prime Minister indicated that during NST1, school facilities were expanded and renovated, new hospitals were built, roads were constructed, and more employment opportunities were created. “We aim to establish a solid foundation for our economy. Over the past 15 years, Rwanda’s economy has grown at an average rate of 7% per year, a success driven not only by government initiatives but by the collective effort of all Rwandans. Looking ahead, our goal is to achieve an annual growth rate of at least 9% over the next five years,” Ngirente said. He stated that the overarching goal is to improve the quality of life for every Rwandan while establishing a robust economic foundation. This foundation is key to achieving upper-middle-income status by 2035 and high-income status by 2050. Also read: Rwanda created 1.3m jobs, exports doubled over seven years Under the Vision 2050, Rwanda needed to register at least a 12 per cent annual growth rate between 2018 and 2035, and grow at 10 per cent per annum from 2036 to 2050 to hit the upper middle-income and high-income status. This means realising gross domestic product (GDP) per capita of $4,035 by 2036 and $12,476 by 2050. As at the end of last year, GDP per capita stood at $1,040 from $774 from 2017. “This is an ambitious plan and we hope to achieve it by creating more jobs especially for young people, strengthening social protection, and increasing productivity,” the premier noted. Ngirente suggested that the government has a plan to expand road construction activities, build new schools, renovate and equip existing hospitals, as well as boost exports by promoting manufacturing, mining, and agriculture. Under NST2, Rwanda hopes the private sector will play a key role in helping the country achieve its targets. As a result, private investment is expected to increase from $2.2 billion in 2024 to $4.6 billion by 2029, while national savings are projected to rise from 12.4% of GDP to over 25%. Export revenues are expected to double to $7.3 billion by 2029, and tourism revenues are anticipated to increase from $620 million in 2024 to $1.1 billion by 2029. Also read: Unpacking Rwanda’s five-year development strategy Pension reforms The Prime Minister addressed concerns expressed by different people regarding the recently introduced pension reforms, saying the review was taken in the interest to strengthen the pension system. He emphasised the importance of planning and saving for the future to ensure a decent quality of life during retirement, especially in light of increased life expectancy. “Based on the increased life expectancy, [a person] will live as many years in retirement as they did work. So, what will they live on during that time? That’s when we realised that a Rwandan should not live a long life in poverty. That’s why we said they must make some sacrifices,” he observed. The pension reforms, announced recently by the Rwanda Social Security Board (RSSB), mean that Rwandans employed in the formal sector will, starting in January 2025, pay 12 per cent of their monthly gross salaries, from the current 6 per cent. The contribution rate is expected to increase further to 20 per cent of the employee’s salary by 2030, split equally between the employee and the employer, RSSB said. To facilitate the smooth transition, RSSB said the increase will be implemented gradually in four years, with a 2 per cent annual increase from 2027 to the 20 per cent target by 2030. Ngirente clarified that raising pension contributions is not a decision made by RSSB alone. “It is a decision of the Government of Rwanda, which looks after its citizens from birth to old age. The Government of Rwanda would never make a decision that is not in the best interest of Rwandans. We ask for patience from Rwandans,” he said.
