For companies looking to expand their operations to Africa to meet Corporate Social Responsibility (CSR) goals, Rwanda is an excellent option to build your impact sourcing operation. Often referred to as the "Land of a Thousand Hills," Rwanda has undergone a remarkable transformation over the past few decades. Emerging from the shadows of the 1994 genocide, the country has rebuilt itself into a beacon of stability, economic growth, and social progress. 

In this first article in a three-part series spotlighting Rwanda, we’ll give you an overview of the nation's current state, focusing on its business economy and the opportunities that exist in the Business Process Outsourcing (BPO) and Information Technology Outsourcing (ITO) sectors.

Snapshot: Rwanda at-a-glance

• Population: 14,442,568 (2024)

• Currency: Rwandan Franc (RF, RWF)

• Average monthly salary: 100,000 – 600,000 RWF (approximately $75-450 USD)

• Average annual salary: 8,305,400 (approximately $6200 USD)

• Languages: English, French, with some availability of German and Spanish

• Main economic sectors: Agriculture, mining, tourism and services

• Literacy rate: Around 73%

• GDP growth rate: Around 8% annually

Safe, secure and a sense of community

Rwanda is known for its safety and security, making it an attractive destination for both tourists and businesses looking to set up shop here. The country's atmosphere is laid-back and friendly, with a strong sense of community. Women, in particular, feel safe as the streets are well-lit, and there’s typically a visible police presence. Foreigners are treated with respect, and English and French are widely spoken, making communication easy for North American visitors.  While known for its connection to the French language, in 2008 there was a switch to English as an official language and as a youthful country, English is definitely becoming the dominant capability.

While the 1994 genocide which claimed over a million lives remains a shadowed part of the country’s history, Rwanda has made great progress in healing and reconciliation. The government has fostered a spirit of unity, and today, there are no visible signs of past tensions between the Hutu and Tutsi populations. The monthly community service day, Umuganda (roughly translated as “coming together”), is a testament to this unity, as citizens come together to clean their neighborhoods, lending to Rwanda’s reputation for being one of the cleanest countries in the world. (TIP: We strongly recommend that you visit to the Rwanda Genocide Memorial and take the time to see the history and the event’s impacts for yourself. Bring tissues, and don’t ask people about the terrible events, wait for them to volun-share if they want.)

A growing economy

Rwanda's economy has shown impressive growth, driven by strategic government policies and a focus on sectors like technology, tourism, and agriculture. The country's population is just over 14 million, with an average age of 19 years. This young demographic is a significant asset for businesses looking for a dynamic and adaptable workforce.

Rwanda aspires to become a Middle-Income Country by 2035 and a High-Income Country by 2050. This ambitious goal is supported by a series of seven-year National Strategies for Transformation (NST), underpinned by sectoral strategies focused on meeting the UN’s Sustainable Development Goals (SDGs). The economy has remained resilient and adaptable despite challenging external and domestic factors, achieving a 7.6% growth rate in the first three quarters of 2023. GDP growth is expected to regain momentum in 2024–26, with a projected average growth of 7.2%.

Ripe for investment

Rwanda's business environment has seen significant improvements, making it an attractive location for investment. The government has implemented various reforms to make it easier for foreign investors to do business, including streamlining regulatory processes and improving infrastructure. These efforts have paid off, with Rwanda consistently ranking among the top African countries in the World Bank's Doing Business Report.

The services sector has been a major driver of economic growth, sustaining domestic demand and contributing to the positive economic trajectory. The rebound of the industrial sector has also played a significant role in this robust growth.

Rwanda is also an emerging hub for Business Process Outsourcing (BPO) and Information Technology Outsourcing (ITO). You can read more about this in part 3 of our Spotlight on Rwanda.

Challenges and opportunities

While Rwanda has a positive economic outlook overall, it still faces a number of challenges that need to be addressed in order to sustain growth. Some of these challenges include:

• Public debt. Rwanda’s public-sector-led development model has led to substantial fiscal deficits, with the debt-to-GDP ratio rising significantly in recent years. Addressing this issue requires a shift towards greater private sector involvement in the economy.
• Poverty reduction. Rwanda has made great strides in reducing poverty, but progress has slowed down recently. Ensuring that everyone benefits from economic growth is still a big challenge, especially in rural areas where people are spending less.
• Infrastructure and services. Continued efforts are needed to improve the quality of infrastructure, essential basic services (education, health, and social safety nets), and support for entrepreneurship and private-sector job creation.

A global leader in gender equality

When it comes to gender equality, Rwanda is at the forefront with women occupying high positions across various sectors. The country boasts a majority female parliament, and women hold significant roles in government, judiciary, and corporate leadership. This progress is the result of deliberate policies and initiatives aimed at empowering women and promoting gender equality.

Several initiatives focus on empowering women economically and socially. The "Promoting Women’s Economic Empowerment" (WEE) project aims to create good jobs for women, improve working conditions, and support women-owned businesses. These initiatives go a long way in helping to address the challenges women face, such as unpaid care work, which limits their economic opportunities.

The journey ahead

Rwanda's journey from a nation with a complicated history to a thriving, forward-looking country is nothing short of remarkable. The government's focus on economic development, along with a strong commitment to gender equality, has created a vibrant business environment and numerous growth opportunities. 

Be sure to check out part two of our Spotlight on Rwanda series where we’ve put together a comprehensive checklist to help you prepare for your business trip to Rwanda.