World Bank has approved a new partnership with Rwanda that will ensure accelerating private sector-driven growth to create jobs, improving productivity and raising poor peoples’ incomes; support transparent and accountability in governance.
The new Country Partnership Strategy (CPS) for Rwanda was approved by World Bank Group’s Board of Executive Directors.
The partnership, which is in line with the country’s Second Economic Development and Poverty Reduction Strategy EDPRS2, is expected to have the greatest impact on the country’s development future.
Ronald Nkusi, director of External Finance Unit at Ministry of Finance said that the renewed partnership will consolidate what has been achieved in the country.
“The Bank’s involvement will help Rwanda create jobs for an increasingly urbanized population, as well as support greater agricultural productivity and rural development, which are all crucial for achieving the ambitious goals set by the Rwandan Government,” said Diariétou Gaye, World Bank Country Director for Rwanda.
Rwanda has registered remarkable progress in last five years with over one million citizens going over the poverty line. The country now has the potential to expand its growth by focusing on export diversification, structural transformation, regional integration and financial sector deepening.
In Vision 2020, Rwanda’s long-term socioeconomic development agenda, it is envisaged that a critical mass of viable SMEs will create 3.2 million off-farm Jobs by 2020. Incidentally, unemployment is one of the biggest challenges Rwanda is facing today.
The youth population between 14-35 years old is 4, 159,000, among them 70.2% are working and 26.3% are students. About 65% of the youth work less than 35hours per week and this is a proxy to time related to underemployment. It is also estimated that 1.4% are unemployed and the unemployment is high in Kigali city with 4.8% for men and 10% for female.