Home Business & TechEconomy 1.5m Rwandans Are No Longer Poor — But the Richest Are Getting Richer Even Faster

1.5m Rwandans Are No Longer Poor — But the Richest Are Getting Richer Even Faster

by Fred Mwasa
12:07 am

In Nyange cell, Mugesera Sector (Rwamagana district), Mukazigama Ernestine’s HomeBiogas digester provides clean cooking energy and filters the rest of the waste into fertile fertilizer, boosting the growth of her beans, corn, and banana plants. Through the digestion of livestock manure, it provides a sustainable cooking solution, significantly reducing the need for firewood, thus conserving forests and reducing greenhouse gas emissions. (Photo by UNDP Rwanda)

Rwanda is winning the fight against poverty, new numbers clearly highlight that — but the wealth gap between rich and poor remains stubbornly wide, and in some places, it’s even growing.

The latest national survey shows that while more Rwandans are rising out of poverty, the richest are advancing at a much faster pace, raising fresh concerns about inequality and inclusive growth.

The new data comes from the Seventh Integrated Household Living Conditions Survey (EICV7), conducted by the National Institute of Statistics of Rwanda (NISR). The survey, which ran from October 2023 to October 2024, is the most comprehensive snapshot of how Rwandans live — from what they eat, to how they earn, to what they own.

The headline finding is striking: only 27.4% of Rwandans lived in poverty in 2024, down from 39.8% in 2017. That means over 1 in 10 Rwandans moved above the poverty line in just seven years. It’s a major achievement, especially considering the economic shocks of COVID-19, climate-related disasters, and global inflation.

But that’s only part of the story

As more Rwandans leave poverty behind, the wealthiest are moving ahead even faster — and by a much wider margin. This trend is clearly reflected in consumption patterns, which economists use as a proxy for income and well-being.

In 2024, households in the richest 20% (the top quintile) consumed an average of RWF 1,704,000 per adult per year. Meanwhile, households in the poorest 20% consumed just RWF 414,000.

Compare that to 2017, when the richest consumed RWF 1,389,000 and the poorest consumed RWF 345,000.

In short, the poorest saw their consumption rise by about 20%. The rich saw theirs rise by about 23%.

This means the gap between rich and poor hasn’t shrunk — it has slightly widened.

In 2017, the richest consumed 4 times more than the poorest. In 2024, they now consume over 4.1 times more.

The gap is even more visible in key urban areas, particularly Kigali, where inequality is the highest in the country. According to the report, Kigali’s Gini coefficient — a standard measure of inequality — is 44.5. For context, a Gini score above 40 is considered high by global standards. In rural areas, the Gini is much lower, at 26.3.

What’s more, the well-to-do households are not just consuming more — they are also obviously enjoying modern housing, electricity, education, and access to digital tools.

For example, in 2024:

  • 91.7% of households in Kigali had access to electricity, compared to just 65.3% in rural areas.
  • 79.6% of the richest households lived in homes with concrete or tiled floors, compared to only 12.8% among the poorest.
  • 78% of the wealthiest households had at least one member with a smartphone, while only 12% of the poorest did.
  • TV ownership was 39% in Kigali, but just 2% among the bottom quintile.

The same pattern appears in education. Secondary school enrollment rose overall — from 23.8% in 2017 to 33.7% in 2024 — but it was only 20% among the poorest, compared to 55% among the richest.

Even health care access, though improved, shows disparities. Nationally, 71% of people who fell ill received care in 2024, up from 57% in 2017. But wealthier households were more likely to seek treatment, and more likely to have health insurance.

So what does this all the above mean?

The progress against poverty is real with 1.5 million graduating from poverty in the last 7 years. Rwanda’s investment in social protection, rural electrification, education, and infrastructure is lifting lives and reducing hardship. The share of households living on the edge of survival has dropped significantly.

Even with the poorest, the data from the report shows that their level of need has drastically dropped. They may be poorest, but living far much better than how the poorest live in other countries, particularly in this region.

But inequality is proving harder to fix.

In simple terms, the poor are doing better, but the rich are doing much better. And unless the growth is more evenly shared, inequality could slow down Rwanda’s development goals — or worse, lead to social frustration.

Latest reviews from Rwanda’s international partners, the government’s own admission, is that addressing the inequality gap requires targeted investments in rural areas, improved access to quality education and health care, and continued efforts to reach vulnerable groups, especially in the lowest income brackets.

As Rwanda works toward its ambitious Vision 2050 — aiming to become an upper-middle-income country in the next decade — the challenge is no longer just about reducing poverty. It’s about ensuring that no one is left behind in the race for progress.

The EICV7 data shows that Rwanda is moving forward — but now, it must move together.

 

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