Rising global energy and transport costs are expected to push up prices in Rwanda, Prime Minister Dr. Justin Nsengiyumva said Friday. While the country’s economy remains strong, officials are urging citizens to prepare for higher costs.
Rwanda’s economy projected to grow 9.4% in 2025 despite global challenges, government says.
Rwanda may see rising prices in its markets due to the ongoing war in the Middle East, which involves Iran, the United States, and Israel. Speaking at a press briefing, Dr. Nsengiyumva assured citizens that the government is taking steps to protect the economy.
“Our economy is performing well. We see the challenges, but we are prepared,” he said. “Citizens should not lose heart.”
Rwanda’s economy is projected to grow 9.4% in 2025, up from 8.9% in 2024. This outpaces the Sub-Saharan African average of 4.4% and the global average of 3.3%.
Growth is being driven by services (9%), agriculture (7%), and industry (11%), the Prime Minister said.
Dr. Nsengiyumva said the conflict has pushed global energy and transport prices higher, with oil rising from $70 to $100 per barrel.
The government has subsidized fuel for a month and maintains petroleum stocks sufficient for six months. Rwanda is also promoting alternative energy, including domestic gas and methane gas from Lake Kivu. A methane project is expected to supply 185 megawatts of energy starting in 2029.
“These measures aim to reduce the impact of price fluctuations and ensure stability,” he said.
The Prime Minister called on Rwandans to use petroleum products efficiently, reduce unnecessary travel, and rely more on public transport, including electric buses.
He also encouraged support for locally made products, noting disruptions in trade routes through the United Arab Emirates.
“Support and buy locally made products under the ‘Made in Rwanda’ initiative. Increase production in agriculture and livestock,” he said.
Dr. Nsengiyumva warned traders against arbitrary price hikes and said the government will closely monitor the market to prevent excessive inflation and protect citizens.
The briefing highlighted Rwanda’s strong economic position and the government’s proactive steps to navigate global challenges. While the Middle East conflict poses risks, officials said they are prepared to protect citizens and sustain growth.
