Human Capital and Labour Report Rwanda

Rwanda, officially the Republic of Rwanda, is a small land-locked country located in central-east Africa, a few degrees south of the equator, in the African Great Lakes region. It is bordered by Uganda, Tanzania, Burundi and the Democratic Republic of Congo (DRC). Rwanda has one of the highest population densities in Africa, with a young and predominantly rural population totalling over 12 million people.The country has a high economic real growth, which is higher than the Sub-Saharan Africa’s average. The annual inflation rate is still low, but under pressure on cost of living. Advances continue to make it easier of doing business and governance indicators register improvements. The country remains a very poor country, though, with a high Gini Index and ranks 167 out of 187 countries on UNDP’s Human Development Index. Rwanda has a growing talent pool as a result of its population dividend, of which 56% are of the working age. Its growing working age group is cause for optimism for the country as it can help to stimulate economic growth and development if utilized well.Improvements to vital infrastructure in the country are being made, as seen with government’s introduction of compulsory health insurance for the entire population, which has been accompanies by a policy to develop health organisations throughout the country. Rwanda’s education system is also improving with increasing enrolments rates across all levels, the provision of free primary education, and 96% of primary teachers being trained. However, around 53% of the population has no schooling at all, lowering the country’s human capital levels. Rwanda does however have a relatively high ratio of vocational students to all secondary pupils in comparison with sub-Saharan Africa’s average.

This country analysis focuses on broad human capital indicators including:

  • Country profile, including a brief overview of the country; corruption and governance indicators; and the business culture.
  • Economic indicators, including an overview of the economy; competitiveness and ease of doing business; largest companies; foreign aid and foreign investment.
  • Socio-demographic indicators, including population parameters, standard of living and poverty measures.
  • Healthcare and wellness: The focus here is on the impact of Tuberculosis (TB), HIV/AIDS and malaria on the workforce and workplace; the availability of specialist healthcare and also primary and secondary healthcare.
  • Education trends, including the education level of the population and workforce; as well as education standards and output.
  • Labour force, including the economically active population; job creation; employment sectors; skills shortages; the training and skills development framework; employment of expatriates; brain drain; industrial relations; professional human resource management and more.

Throughout the research, implications, challenges and recommendations are offered to employers, policy makers, donors, investors and the human resource management fraternity. This is all done within the context of Rwandan socio-economic realities.

Where appropriate, comparisons were made against South Africa, Nigeria, the DRC and Kenya. Nigeria was selected because it is the largest economy in Africa; South Africa for being the second largest economy and most modern economy in Africa; and the DRC and Kenya for their similar geographic and historical context. The data of these countries are used to provide context and perspective.

The country analysis refers only briefly to the Rwandan economy, political situation or general risk factors. There are dozens of platforms, reports, research and publications available in that regard for those who wish to apprise themselves of information relating to those areas.

The research is unique by its predominant focus on the Rwandan labour force.


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