Rwanda is currently under particular scrutiny: the East African country is prepared to co-operate with the EU on migration issues. Agreements are being discussed under which Rwanda would host refugees and organise asylum procedures. Critics argue that Rwanda is an authoritarian country with low rule of law standards.

The question behind this is: is the country a “developmental dictatorship” that first sets the course for economic growth and later matures into a democracy? Such hopes have often been dashed, most recently in Ethiopia. What is clear, however, is that economic development is promising:

With business-friendly reforms, the country, which is roughly the size of Brandenburg and still heavily characterised by agriculture, has successfully positioned itself as an entry market for foreign investors in Africa. At the same time, a modern service sector is developing in the capital Kigali in the areas of finance, trade and IT.

Economy. According to the IMF, Rwandas economy grew by 6.9 percent in 2023. For the current and the next year, economists predict growths rates at a similar level. The gross domestic product per capita rose from the equivalent of 234.8 to 966.2 dollars in the last 20 years. Inflation recently stood at 5.8 per cent. National debt has reached around 69 per cent of GDP.

Population. Rwanda has around 14 million inhabitants. Annual population growth has slightly declined from to 2.3 percent in the last years. Since 2004, the fertility rate has fallen from 5.6 to 3.8 children per woman. Life expectancy was at 67 years recently, 16 years more than 2002. Around 49 percent of the population has access to electricity (twenty years ago, it was 7.4 percent).

Governance. On Transparency International’s latest Corruption Perceptions Index, Rwanda ranks 49th out of 180 and is one of the best African countries. The score of 53 points (+ 2 since 2022) brings the country to the same level as countries like Georgia and Cyprus (and only one point behind Poland).

Sources and further information:

World Bank: https://data.worldbank.org/country/rwanda

Africa Business Guide https://www.africa-business-guide.de/de/maerkte/ruanda

Germany Trade & Invest: https://www.gtai.de/resource/blob/18336/530288eb72625adec2d02252a6e3777a/GTAI-Wirtschaftsdaten_Mai_2024_Ruanda.pdf

Transparency International: https://www.transparency.org/en/cpi/2023/index/nga