Rwanda’s strong economic growth has long been a source of national pride. But now, for many households and young job seekers, rising living costs and persistent unemployment are casting a shadow over that progress.
Inflation puts pressure on households
Inflation in Rwanda has climbed in recent months, raising the cost of basic goods and services. According to the National Institute of Statistics of Rwanda (NISR), the Consumer Price Index rose by 7.1% year-on-year in August 2025. Food and non-alcoholic beverages increased by 5.4%, while imported goods rose by 8.3%. In June 2025, inflation stood at 7.0%, with food prices up 8.7% year-on-year.
Many households are feeling the strain. Aline, a mother of three in Kigali, noted that her weekly grocery bill has increased from 10,000 RWF to 15,000 RWF in just months. “Prices keep increasing, but my salary stays the same. I don’t know how much longer we can manage,” she said.
Beyond food, costs are rising for housing, clothing, and transport. Supply-chain issues and import pressures are also contributing to higher prices. As a result, families are cutting back on non-essential spending and making tough decisions about what to prioritise.
Youth unemployment remains alarmingly high
While inflation grips households, the job market is failing to keep pace, especially for young people. The NISR reports that the youth unemployment rate (ages 15–24) stood at around 21% in 2023. Other recent data show youth unemployment decreasing to 15.5% in Q3 2025, though it remains significantly higher than the adult unemployment rate.
For young graduates, the challenge is acute. “I’ve been job searching for two years,” says Eric, a business administration graduate. “There are jobs, but the salaries are low, or my qualifications don’t match what employers here want.” Many young people instead turn to informal work, such as market vending, casual driving, or subsistence agriculture, which offer little security or mobility.
Government actions and economic outlook
Recognising the scale of the challenge, the government of Rwanda has launched several initiatives aimed at boosting employment and stabilising living costs. Efforts include investing in manufacturing, technology, and tourism sectors expected to create more stable jobs. Trade and Industry Minister Richard Sezibera said, “We understand the challenges facing our citizens, especially youth. We are investing in sectors that can create long-term employment, such as local manufacturing, technology, and services.”
Rwanda’s economy itself continues to grow by 8.9% in 2024, and is projected to expand around 7.1% in 2025. But inflation and unemployment risks mean that growth alone may not translate into improved living standards for all.
For many Rwandans, today’s economic gains feel distant. Rising costs and weak job opportunities are undermining hope for the future. The economy is growing, but unless inflation comes under control and youth employment improves significantly, the promise of progress may remain out of reach for large portions of the population.
Efforts to link growth with inclusive opportunity ensuring that both living standards improve and young people gain meaningful employment, will determine whether Rwanda’s development trajectory remains on solid ground.
