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Rwanda posts 10% first-quarter growth as Cabinet unveils reforms

by John Mugisha
1 July 2026
in Economy
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Rwanda posts 10% first-quarter growth as Cabinet unveils reforms
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Rwanda’s economy expanded 10% in the first quarter of 2026, the government said Tuesday, as the Cabinet approved a series of governance, tax and development measures aimed at supporting growth and strengthening public administration.

The growth, which outpaced many regional peers, highlights continued resilience in Rwanda’s economy despite global economic uncertainty and tightening financial conditions.

A Cabinet meeting chaired by President Paul Kagame at Urugwiro Village was told that gross domestic product (GDP) rose to 6.346 trillion Rwandan francs, up from 5.276 trillion francs in the same period in 2025.

Growth was broad-based across key sectors, with services accounting for 52% of output, industry 24% and agriculture 19%, while other activities made up 5%.

Industrial output increased 13%, agriculture grew 8%, and services rose 7%, driven by manufacturing, mining, construction, information and communications technology, and export-oriented agriculture.

The government said it would continue monitoring global trade developments and take “timely and effective measures” to safeguard macroeconomic stability.

Alongside the economic update, the Cabinet approved several legal and policy measures, including draft laws ratifying international financing agreements.

These include a loan from Agence Française de Développement (AFD) to support Rwanda’s health sector, and a World Bank-administered grant under the Global Financing Facility and Health Emergency Preparedness and Response trust funds to strengthen disease outbreak preparedness and response.

Two additional International Development Association loans were approved to support commercial agriculture development and improve livelihoods.

The Cabinet also approved a package of tax administration reforms, including the establishment of a Tax Policy Committee, new rules on electronic invoicing, tax deductions, and incentives for reporting tax evasion.

Other measures included conditions for tax relief for deposit-taking microfinance institutions and updated requirements on accounting records and turnover thresholds for tax compliance.

Officials said the reforms are aimed at broadening participation in tax policy formulation, improving compliance and enhancing efficiency in tax administration.

The Cabinet further approved a presidential order governing elections in decentralized government institutions and a prime ministerial order regulating elections of executive committees in national councils for women, youth and persons with disabilities.

The revised framework is intended to strengthen citizen participation and improve representation of women, youth and persons with disabilities in governance structures.

In diplomatic appointments, the Cabinet approved the accreditation of Mohamed Basheer Abdalla Mennawi as Sudan’s ambassador to Rwanda and Huh Jungae as South Korea’s ambassador to Rwanda, both resident in Kigali.

Sakamoto Atsuki was approved as the Japan International Cooperation Agency (JICA) representative in Rwanda, while Jim Hegarty was endorsed to represent Rwanda’s interests in Ireland.

Separately, the Minister of National Unity and Civic Engagement said the 16th edition of Itorero Indangamirwa will run from July 1 to August 10 at the Gabiro Military Training School.

The Minister of Defence briefed the Cabinet on the conclusion of the 2026 joint community outreach programme involving the Rwanda Defence Force, Rwanda National Police and local communities, with project handover scheduled for July 4 during Liberation Day celebrations.

The Minister of Agriculture and Animal Resources also announced the National Agriculture and Livestock Exhibition will take place in Kigali from July 22 to 31 at the Mulindi Expo Grounds.

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John Mugisha

John Mugisha

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