National Service and Self-Reliance
Senior 6 · General and Religious Studies
National Service and Self-Reliance
Lesson 4 of 4
25 min
In December 2011, at the ninth Umushyikirano (the National Dialogue Council), Rwandans proposed a fund that would let the country save for itself and stand firmer when foreign aid was cut or delayed. On 23 August 2012, President Paul Kagame launched the Agaciro Development Fund. Unlike most national savings funds, which are filled with oil money or budget surpluses, it began with voluntary contributions from Rwandans at home and abroad; some institutions gave a month's salary. The Minister of Finance said the aim was to make the country "increasingly independent of foreign aid".
Agaciro means dignity or self-worth. The choice of name says what self-reliance is about: not only money, but a people's confidence that it can shape its own future.
Definition
Self-reliance (kwigira): the ability of a person, a community or a country to meet its own needs mainly through its own work, savings and resources, while still cooperating with others.
Dependency: relying on others, such as donors or relatives, for basic needs, so that one's choices depend on their decisions.
Domestic revenue: money a government raises inside the country, mainly taxes, plus fees, fines and income from state property.
Grant: money given by another government or organisation that does not have to be repaid. Loan: borrowed money that must be repaid with interest.
Sovereign wealth fund: a fund owned by the State that saves and invests public money for the future, such as the Agaciro Development Fund.
| Source of money (Frw billion) | 2025–26 | 2026–27 |
|---|---|---|
| Domestic revenue | 4,105.2 | 5,273.8 |
| External grants | 585.2 | 548.3 |
| External loans | 2,151.9 | 1,974.1 |
| Total budget | 7,032.5 | 7,796.3 |
Between the two budgets, domestic revenue rose from Frw 4,105.2 billion to Frw 5,273.8 billion, an increase of about 28.5%: . Its share of the budget rose from 58.4% to 67.6%, while grants fell from 8.3% to 7.0%. That is a move towards self-reliance.
But read the chart critically. The second-largest source in both years is external loans, about a quarter to a third of the budget. Loans are not aid: they must be repaid with interest, and they finance large investments such as the new Kigali international airport. So "less dependent on grants" does not mean "independent of the outside world". A self-reliant country borrows for projects that will earn back more than they cost, and raises enough of its own revenue to repay.
| Level | What self-reliance means | Measures in Rwanda |
|---|---|---|
| Individual and household | Earning a living, saving and planning for old age | Technical and vocational training (TVET); the Ejo Heza long-term savings scheme for workers, including those in the informal sector; financial literacy |
| Community | Solving local problems together, without waiting for outside help | Umuganda; cooperatives; Umurenge SACCOs (savings and credit cooperatives in every sector); Ubudehe, collective action against poverty; Girinka, "may you have a cow", which passes a calf on to a neighbour |
| National | Financing the State's needs and producing more of what the country uses | Collecting more tax through the Rwanda Revenue Authority; the Agaciro Development Fund; the Made in Rwanda policy, which promotes local products and reduces imports; investment in energy, transport and skills under the National Strategy for Transformation (NST2, 2024–2029) |
Warning
Self-reliance is not isolation. A common mistake is to write that a self-reliant country "does not need other countries". Rwanda trades, borrows and cooperates through the East African Community, the African Union and the United Nations. Self-reliance means that the country decides its own priorities and can pay for most of them, not that it closes its borders.
Tip
Measure it. When asked to "assess Rwanda's progress towards self-reliance", give a number with a year and a source, such as the share of the budget financed by domestic revenue, then weigh it against a limit, such as the level of borrowing. One fact well used is worth more than many slogans.
Important
Discuss. Girinka and Ubudehe give help to poor households. Do they build self-reliance or dependency? Consider what a family is expected to do once it has received a cow, and why the first calf is passed on to a neighbour.
Practice
Further reading
Sources and credits
Written by Ganzaa: Figure 4, the tables, the calculations, the analysis and the exercises.
