OCT 2026
Business//Wednesday, September 16, 2026

Rwanda’s Economy Expands 9.4% as Industry and Services Drive Q2 Growth

J
BY Jolie Teta
4 min read• 603 READS
Rwanda’s Economy Expands 9.4% as Industry and Services Drive Q2 Growth

KIGALI, Rwanda — Rwanda’s economy expanded by 9.4 percent in the second quarter of 2026 compared with the same period a year earlier, extending a period of strong economic activity as industry, construction, mining and services contributed to growth, according to official national accounts released on September 15 by the National Institute of Statistics of Rwanda (NISR). The second-quarter rate was higher than the 7.8 percent recorded in the corresponding quarter of 2025.

At current market prices, Rwanda’s gross domestic product reached Frw 7.174 trillion during the quarter, compared with Frw 5.799 trillion in the second quarter of 2025. Services remained the country’s largest economic sector, representing 51 percent of GDP, while industry accounted for 23 percent and agriculture 21 percent. Net indirect taxes represented the remaining 5 percent. 

Industry recorded the fastest expansion among the three major sectors, growing by 18 percent and contributing 3.9 percentage points to overall GDP growth. Mining and quarrying increased by 26 percent, construction expanded by 24 percent and manufacturing grew by 10 percent. Within manufacturing, production of metal products, machinery and equipment increased by 51 percent, while non-metallic mineral products rose by 22 percent and textiles and leather products increased by 13 percent. 

The construction figures are particularly significant as Rwanda continues major infrastructure and urban-development investments. Increased construction activity can generate demand across interconnected parts of the domestic economy, including manufactured building materials, transportation, engineering and other services. The official figures show that gross capital formation increased by 32 percent during the quarter. 

Services expanded by 7 percent and contributed 3.7 percentage points to overall economic growth. Wholesale and retail trade rose by 18 percent, transportation by 7 percent and information and communication services by 29 percent. Financial services increased by 4 percent, administrative and support services by 9 percent, and hotels and restaurants by 5 percent. At the same time, the figures showed uneven performance within the sector, with public administration declining by 3 percent and health services falling by 39 percent. 

Agriculture grew by 4 percent and contributed one percentage point to overall GDP growth. Food-crop production increased by 5 percent, livestock and forestry each rose by 6 percent, while fishing registered a 66 percent increase. Export-crop production, however, declined by 20 percent, illustrating that the overall expansion did not extend uniformly across all areas of the economy. 

External trade and domestic expenditure also recorded substantial movements. Exports of goods and services increased by 19 percent, while imports rose by 36 percent. Household final consumption expenditure increased by 13 percent, while government final consumption expenditure declined by 6 percent. Private final consumption represented 74 percent of GDP during the quarter. 

The latest quarterly figures follow 10 percent year-on-year GDP growth in the first quarter of 2026. At the release of those earlier results, Finance and Economic Planning Minister Yusuf Murangwa described the performance as evidence of strong economic fundamentals and said the government was encouraged by manufacturing and export-crop performance while continuing to address weaker areas of agricultural production. “The 10% growth in the first quarter underscores the strength of our economic fundamentals,” Murangwa said at the time. 

The latest quarterly performance also comes against the backdrop of Rwanda’s 10.6 percent economic growth during the 2025/26 fiscal year, according to NISR. During that period, industry expanded by 16 percent, services by 8 percent and agriculture by 7 percent. 

International assessments nevertheless point to both strengths and continuing fiscal challenges. Fitch Ratings affirmed Rwanda’s long-term foreign-currency issuer rating at “B+” in March and revised its outlook to Stable. The Ministry of Finance says the assessment recognized factors including Rwanda’s governance indicators, growth potential and concessional public-debt structure. The government has said it is pursuing revenue reforms, expenditure rationalization and debt management as part of efforts to maintain fiscal sustainability. 

The Q2 figures present an economy maintaining rapid expansion despite an uncertain international environment, while also revealing areas requiring continued attention, including export crops and several service activities. With industry recording particularly strong gains and services continuing to account for more than half of national output, the latest data indicate that investment, industrial activity and an increasingly diversified service economy remain central to Rwanda’s current growth trajectory. 

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