The World Bank has said that Rwanda’s labor force is growing at a faster rate compared to the rest of the world, an aspect that will propel the country’s growth in the next decade.
This according to the World Bank, is set to enable the country grow faster following a sharp drop in fertility rate. Rwanda’s fertility rate dropped from six children per woman in 1990 to four in 2005, one of the highest drops in the world.
A report presented during the fifth edition of World Bank’s Rwanda Economic Update suggests that the country’s labor force currently accounts for 53 % of the total population (estimated at 12million) and is positively associated with increasing income levels. It is expected to increase to 67% by 2050.
Carolyn Turk, World Bank country manager says that this presents a great opportunity for the country’s growth as government puts in place supportive policies, and this is a hint at substantial increases in income levels.
However, Kampeta Sayinzoga, the Permanent Secretary in Rwanda’s Ministry of Finance says that the increasing population still poses a challenge to the country’s development and so far the government has embarked on promoting skilled labor and productive employment opportunities, nationwide urbanization programs as a way to ease up land and reduce rural-urban migration.