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SNV Rwanda 2011
7
Despite the progress made to date, an
estimated 56% of Rwandans still live
below the poverty line. The economy
is very dependent on subsistence
agriculture, which contributes about
34% of GDP, 80% of employment and
50% of exports. Some segments of the
rural poor still experience water and
food uncertainty, with food insecurity
affecting 21% of Rwandans.
Rwanda has a high population density
(384 inhabitants/km2) and a low
urbanisation rate. Measures have been
put in place to stimulate agricultural
intensification and to address
environmental challenges related to the
high pressure on resources such as land
and water. High levels of investment
are still required in order to achieve the
agricultural transformation.
Key labour market skills are also
lacking—almost 75% of Rwanda’s labour
force is unskilled, and less than 10% of its
working population is educated beyond
primary level.
Expensive energy
and high transport
costs, relative to
its neighbours,
raise the
costs of doing
business in
Rwanda.
Despite
t h i s ,
Rwanda
continues to climb up the ‘doing
business’ list and is now ranked 50 (was
58 in 2010).
The country scores particularly high
with respect to starting a business,
fiscal procedures, property registration,
access to credit, and
international commerce.
The third phase of
the decentralisation
process is
underway,
and seeks to
strengthen district
level service
delivery and
local economic
development. Local actors
are encouraged to participate actively
in identifying and removing barriers to
development.