A new study by the Institute of Policy Analysis and Research (IPAR-Rwanda) has revealed that workers employed in small and medium enterprises (SMEs) across the country continue to face limited workplace rights, including a lack of written employment contracts, inadequate social protection, and unsafe working environments.
The study, released on Tuesday, November 4, 2025, assessed the labor market within SMEs as well as the effectiveness of labor inspection in construction and mining. Researchers collected data from 857 SMEs located in the City of Kigali and in the districts of Muhanga, Musanze, Nyagatare, Rubavu, and Rusizi. According to the findings, 90 percent of Rwanda’s businesses fall under the SME category, and many of these are micro-enterprises employing between one and three people.
Despite their role in driving economic growth and job creation, the report indicates that the majority of SME employees continue to earn wages below 200,000 RWF per month and lack job security.
The report further highlights that 26 percent of SMEs still do not provide written employment contracts. Access to health insurance and social security remains low among workers, and 43 percent lack formal training in the fields in which they work. Only 12 percent of employees are trained for the roles they perform, showing a wide gap between qualifications and job requirements.
IPAR-Rwanda’s Executive Director, Eugenia Kayitesi, said the findings show the need for increased efforts to improve labor conditions and protect workers. She emphasized that SMEs remain essential to improving household livelihoods and national development, but noted that employers often set rules and standards that disadvantage employees due to limited supervision and weak enforcement of labor laws.
She added that enhancing labor inspection, supporting businesses to grow sustainably, and strengthening employment formalization will be key to ensuring fair working conditions and aligning Rwanda’s labor market with global standards.
