The Contribution of Agriculture to Rwanda's Economy – Agriculture in Rwanda (Senior 4 Geography) | Ganzaa

Agriculture in Rwanda

Lessons

Senior 4 · Geography

Agriculture in Rwanda

5 lessons

Lesson 5 of 5

The Contribution of Agriculture to Rwanda's Economy

25 min

A fifth of the economy, two-fifths of the workers

In 2025 Rwanda's GDP was Frw 23,387 billion and grew by 9.4%. Services contributed 52%, industry 22% and agriculture 20% (NISR). Figure 5 shows how agriculture's share has changed, and Figure 6 what it is made of.

Figure 5. Agriculture's share of GDP, 2015–2025, calculated by Ganzaa from NISR's GDP tables.

Figure 6. Value added by agriculture, forestry and fishing in 2025. Drawn by Ganzaa from NISR.

Agriculture's value keeps rising (it grew 7% in 2025), but its share of GDP drifts down. How can both be true?

Definition

Gross domestic product (GDP): the total value of goods and services produced in a country in a year. Value added: the value of a sector's output minus the inputs it buys from others.

Structural change: the shift of output and workers from agriculture to industry and services as an economy develops. Food self-sufficiency: the share of a country's food needs met by its own production.

How agriculture contributes

Contribution	Evidence
Output (GDP)	Frw 4,748 billion in 2025, 20.3% of GDP; food crops are more than half of it (NISR)
Employment	39.1% of employed people worked mainly in agriculture, forestry and fishing in 2025 (NISR, LFS)
Food security and nutrition	Rwanda produces nearly 83% of its food needs (MINAGRI, 2026); milk about 1.1 million tonnes a year
Export earnings	Agricultural exports earned US$893.2 million in 2024–25 (MINAGRI); tea alone US$114.8 million in 2023–24 (NAEB); in 2025 export-crop output rose 32%, with coffee up 60% and tea 8% (NISR)
Raw materials for industry	Tea factories, coffee washing stations, sugar, milk and food processing; food processing grew 9% in 2025 (NISR)
Land use	About 1.37 million ha, 58% of the country's land (NISR, SAS 2024)
Rural incomes and markets	Sales of food, milk and cash crops; a market for fertiliser, seed, tools and transport
Government revenue and savings	Taxes on exports and processing; savings from cooperatives

Worked example 1: how productive is a farm worker?

Data. Agriculture produced 20.3% of GDP (2025) with 39.1% of employed workers (LFS 2025).

\text{relative productivity} = \frac{\text{share of GDP}}{\text{share of employment}} = \frac{20.3}{39.1} = 0.52

Interpretation. On average a worker in agriculture produces only about half as much value as the average worker in the whole economy. This gap explains why farm incomes are low, and why raising yields (lesson 3) and moving some workers into processing and services are both needed. It also explains Figure 5: as other sectors grow faster, agriculture's share falls even while its output rises.

Worked example 2: can export earnings grow fast enough?

Data (MINAGRI, 2026). Agricultural export revenue: US$893.2 million in 2024–25; target US$1.54 billion by 2028–29, four years later.

r = \left(\frac{1\,540}{893.2}\right)^{\frac{1}{4}} - 1 = 0.146 = 14.6\%\ \text{a year}

Evaluation. Earnings must grow by almost 15% a year. 2025 shows it is possible in a good year (export-crop output +32%), but tea output grew 8%. Reaching the target depends on prices, weather, coffee yields and on selling more processed products rather than raw tea and coffee.

Limits and challenges

Low productivity: half the economy-wide average per worker; many farmers are in subsistence agriculture.
Dependence on rain and exposure to droughts, floods and pests.
Price risk for export crops sold at auctions.
Limited land: farmland already covers about 58% of the country.
Raw exports: most tea leaves the country in bulk, so value is added elsewhere.

Policy response: the Strategic Plan for Agriculture Transformation (PSTA4, MINAGRI) and NST2 (2024–2029) aim for agricultural growth above 6% a year, more irrigation, higher milk output, and larger and more valuable exports (MINAGRI, 2026).

Warning

A falling share is not a falling sector. Agriculture's value added rose from Frw 1,405 billion (2015) to 4,748 billion (2025) at current prices, more than tripling, while its share of GDP fell from 23.1% to 20.3%. Always say whether you mean the amount or the share.

Rwanda Agri: "20 Years of Rwanda's Agricultural Transformation". The changes in farming, exports and livelihoods over two decades. Note two contributions of agriculture that this lesson's data confirm.

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Practice

Give five contributions of agriculture to Rwanda's economy, with evidence.
Use Figure 6 to calculate the share of agricultural value added that came from export crops in 2025.
Explain why agriculture's share of GDP can fall while its output rises.
Agriculture's value added rose from Frw 1,405 billion (2015) to 4,748 billion (2025). By what factor did it grow?
Why is the productivity of agricultural workers lower than the average?
Suggest three ways to increase agriculture's contribution to export earnings.
"Agriculture will remain the backbone of Rwanda's economy." Evaluate.

Show answersHide answers

Any five: GDP (20.3%, 2025); employment (39.1% of workers); food security (about 83% self-sufficiency); exports (US$893.2 million, 2024–25); raw materials for industry; land use; rural incomes and markets; tax revenue.
$\frac{567}{4\,748} \times 100 = 11.9\%$ .
Industry and services grow faster (GDP grew 9.4% in 2025, agriculture 7%), so agriculture's slice of a larger total shrinks even though its own output increases: structural change.
$\frac{4\,748}{1\,405} = 3.4$ times (at current prices, so partly due to inflation).
Small plots, hand tools, rain dependence, limited inputs and irrigation, and much subsistence production with little sold.
Process more tea and coffee before export; raise coffee and tea yields and quality; expand horticulture exports (fruit, vegetables, flowers) using cold chains and air freight; meet quality standards.
For: it still employs 39.1% of workers, feeds the country (83% self-sufficiency) and earns growing exports. Against: its GDP share is falling (20.3%) and services already contribute 52%. Conclusion: agriculture will remain the main employer and the base for food and agro-industry, but services and industry are becoming the main sources of output.

Quick check

Key points

2025: agriculture Frw 4,748 billion, 20.3% of GDP (food crops 52.9%, forestry 17.8%, livestock 15.9%, export crops 11.9%, fishing 1.4%); growth 7%.
39.1% of employed people work mainly in agriculture; output per worker is about half the average.
Food self-sufficiency about 83%; agricultural exports US$893.2 million (2024–25), target US$1.54 billion by 2028–29.
Its share falls as industry and services grow faster: structural change, not decline.

1A fifth of the economy, two-fifths of the workers

2How agriculture contributes

3Limits and challenges

A fifth of the economy, two-fifths of the workers

How agriculture contributes

Limits and challenges