Kigali, 19 October 2025 — Once ravaged by conflict, the Republic of Rwanda has charted a striking turnaround. With bold state-led development, growing investment inflows, and a tourism boom, Rwanda has become one of the region’s most watched economies. Yet beneath the surface there remain governance and human-rights questions that outsiders must consider.
Governance & Politics
President Paul Kagame of the Rwandan Patriotic Front (RPF) remains the central figure in national politics. His leadership is credited with driving national reconciliation, infrastructure development and positioning Rwanda as a business destination — but critics point to limited political pluralism, constraints on opposition media and civil society, and tight state oversight.
The opposition environment is constrained. While there are parties outside the ruling coalition, there is limited scope for them to do so in democratically competitive ways, according to human-rights watchers.
Economy & Outlook
Rwanda’s economy remains one of the fastest-growing in East Africa. A World Bank update in April 2025 reported real-GDP growth at 8.9 % in 2024, driven by strong investment, services, and recovering agriculture. Looking forward, Rwanda’s Finance Minister announced an expected growth rate of 7.1 % in 2025, easing slightly from the prior year.
The government’s 2025/26 budget proposes a 21 % increase in spending, with major investment in a new Bugesera international airport, infrastructure, agriculture and public services.
While the country has markedly improved economic conditions, the Heritage Foundation’s 2025 Index of Economic Freedom categorises Rwanda’s economy as “Mostly Unfree” (score 54.8, rank 120 globally).
Key risks include external vulnerability, relatively high public debt, and the need to accelerate private-sector growth and job creation.
Tourism & Services
Tourism has become a standout success story. Rwanda’s travel & tourism sector broke all records in 2024: contributing Rwf 1.9 trillion (≈9.8 % of GDP) and supporting approximately 386,000 jobs.
The country’s focus on high-value nature-based tourism (notably gorilla-trekking in Volcanoes National Park), conferences and business Travel (MICE) is paying off.
Exports also grew strongly: in 2024, foreign-trade revenue rose 22% to USD 4.2 billion, according to Rwandan officials.
Despite this success, Rwanda remains small in scale (population ~14-15 million) and heavily reliant on public investment. The challenge: convert growth into broadly-shared prosperity, further formalise the economy and deepen private entrepreneurship.
Business Climate & “Ease of Doing Business”
Rwanda is widely regarded as a leader in business-climate reform in Africa. According to trading economics, Rwanda ranked 38th out of 190 economies in the World Bank’s Ease of Doing Business index (as of older data).
The Rwanda Development Board’s 2024 report notes USD 3.2 billion in investment commitments (up 32% year-on-year) and the country was ranked “first in Africa and among the top 10 globally” in the World Bank’s “B-READY” business-reform rating.
Human Rights, Security & Governance
On the positive side, Rwanda is regarded as one of the safer countries in the region: low levels of violent crime in major urban centres, good infrastructure and increasing international connectivity.
However, international human rights organisations point to limitations on media freedom, civil society, and political opposition. Freedoms of expression and assembly are constrained compared to multiparty democracies, and oversight mechanisms are still developing. Governance critics cite a strong-man style of leadership even as it produces development results.
In terms of regional safety/risk ratings, foreign investors and tourists often consider Rwanda a relatively stable “safe haven” in central-East Africa
The Big Picture
Rwanda offers a compelling story: rapid growth, improving business climate, major investment and tourism momentum. For investors, entrepreneurs and tourists, the country presents opportunities unmatched in many regional peers. But the governance trade-offs, limited political space and external vulnerabilities mean caution is also warranted: the model is state-led and success may depend on continued top-down coordination rather than broad-based liberalisation.
Rwanda: The Rising Star of Central East Africa
