Rwanda needs to promote skills development to sustain growth, says World Bank

KIGALI, Sept. 17 (Xinhua) — The World Bank report released on Tuesday in the Rwandan capital of Kigali stressed the critical need for Rwanda to address skill development challenges in order to maintain its economic growth.

The 23rd edition of the Rwanda Economic Update report, titled “Accelerating Skill Development to Drive Private Sector Growth,” underscores the importance of equipping the workforce with the necessary skills to meet market demands and drive continued progress.

According to the report, Rwanda’s gross domestic product is expected to average 7.6 percent growth between 2024 and 2026. Yet, this economic strength could be undermined by significant skills shortages in the labor market, with over 62 percent of firms reporting that they lack formal training programs for employees.

“The Rwandan government is committed to transforming the technical and vocational education and training (TVET) system, training teachers, and focusing on professional skills development,” said Claudette Irere, Rwandan minister of state for education, at the launch of the report.

She emphasized the ongoing efforts to modernize education and strengthen partnerships with the private sector.

The report said that the skills gap is linked to deficiencies in basic education, low enrolment rates, and high dropout levels. Many children are leaving school without acquiring foundational skills, posing a significant challenge to Rwanda’s long-term economic competitiveness.

The mismatch between educational outcomes and labor market needs is stifling productivity in key sectors like agriculture, manufacturing and services, said the report.

Sahr Kpundeh, World Bank country manager for Rwanda, reaffirmed the institution’s support, saying “the World Bank is ready to work with Rwanda to implement the report’s recommendations.”

The World Bank’s report offers a range of recommendations to tackle the skills deficit, including targeted support for vocational training, enhanced digital skills education, and expanding work-based learning opportunities.

With these reforms, Rwanda can enhance workforce capabilities and better position itself to achieve its Vision 2050 goals, transitioning toward a knowledge-based economy and ensuring sustainable, inclusive growth.

Despite a global economic slowdown, Rwanda’s economy has remained resilient, supported by robust consumer spending and growth in key sectors such as services, mining and construction, according to the report.

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