Rwanda’s services sector has officially overtaken agriculture as the largest employer, accounting for 42.6% of total employment in the fourth quarter of 2024.
This marks a significant shift in the country’s economic structure, as per the latest Labour Force Survey released by the National Institute of Statistics of Rwanda (NISR).
Services Sector Surges Amid Post-Pandemic Recovery
The services sector grew from 39.4% in Q4 2023 to 42.6% in Q4 2024, reflecting a resurgence in tourism, transport, hospitality, and digital businesses. In contrast, agriculture declined from 46.2% to 41%, while industry grew from 14.3% to 16.3% over the same period.
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Economic analysts attribute this transformation to post-pandemic recovery efforts. Straton Habyarimana, an economic expert, highlighted that while agriculture remained resilient during COVID-19, services suffered due to restrictions. The reopening of tourism, hotels, and events has played a key role in this recovery.
“With tourism rebounding and digital platforms creating new jobs, the services sector has regained dominance,”said Habyarimana.
Youth Employment and Economic Diversification
Government efforts to diversify employment beyond agriculture have contributed to this shift. The transition is further supported by a 6%–10% annual growth rate in services, outpacing agriculture’s 4% growth rate.
Youth employment trends also reflect this change. Many young professionals prefer technology, tourism, and digital business opportunities over traditional farming. Rwanda’s service exports, particularly in technology and e-commerce, are also generating foreign currency and reducing the trade deficit.
“We are now exporting tech services to Western and Southern Africa, helping boost Rwanda’s economy,”Habyarimana added.
Key Sectors Driving Growth
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Sub-sectors showing notable employment increases include:
• Information & Communication: +108%
• Real Estate: +71%
• Transport: +54%
• Wholesale & Retail Trade: +35%
Additionally, transportation and storage employment rose by 53.7%, wholesale and retail trade by 31.2%, and manufacturing by 23.2%.
Tourism’s Role in Employment Growth
The tourism industry has played a pivotal role in the expansion of services, attracting more visitors and strengthening Rwanda’s foreign currency reserves.
“The more visitors we attract, the stronger our economy becomes,” noted Habyarimana.
Employment Trends and Future Outlook
The employment-to-population ratio climbed to 54.6% in Q4 2024, up from 49.9% in Q4 2023. This is supported by a 16% increase in the number of business establishments, as per the 2023 Establishment Census.
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While agriculture remains the largest employer (41.1%), its relative decline suggests that Rwanda’s economy is shifting towards a service-driven model. Analysts predict continued growth in services and industry, further diversifying employment opportunities and driving economic development.
