Dubbed the ‘Digital Heart of Africa’, Kigali Innovation City (KIC) is an urban master plan for a mixed-use smart innovation hub in Rwanda.
In a major sign of Rwanda’s shifting economic foundations, the Information and Communication Technology (ICT) sector has emerged as the second biggest contributor to the country’s GDP growth in the first quarter of 2025, affirming the country’s digital ambitions.
According to data released Friday by the Minister of Finance and Economic Planning Yusuf Murangwa and the National Institute of Statistics of Rwanda (NISR), the ICT sector grew by a staggering 19%, contributing 0.7% to growth in the past quarter.
It makes the sector the fastest-growing sub-sector within services, and one of the top drivers of the national economy in Q1 2025.
Overall, Rwanda’s GDP grew by 7.8% during the quarter.
Information and communication services are outpacing traditional contributors such as trade, construction, and even public administration.
Digital Sector Surpasses Expectations
This performance underscores the fruits of Rwanda’s long-term investments in digital infrastructure, smart governance, and education. ICT now plays a central role in the country’s “new economy” model—moving from support function to economic driver.
Breakdown of Top Contributors to GDP Growth – Q1 2025
| Sector | Growth Rate | Contribution to GDP Growth (pp) |
|---|---|---|
| Wholesale & Retail Trade | 14% | 0.9 pp |
| Information & Communication | 19% | 0.7 pp |
| Construction | 13% | 0.7 pp |
| Public Administration | 14% | 0.5 pp |
| Education | 5% | 0.3 pp |
| Manufacturing (selected areas) | 10–22% | Varies by sub-sector |
The sector has shown consistent and growing impact since 2022, especially in early quarters, for example Q1 2023 at 1.1 pp.
It peaked in Q4 2023 with a contribution of 1.2 percentage points. Although its Q1 2025 contribution (0.7 pp) is lower than peak, it is still among the top contributors and more stable than sectors like hotels or real estate
“Our goal is to position Rwanda as a continental leader in innovation-driven technology,” said ICT Minister Paula Ingabire, at the World Economic Forum, Davos, in January 2025. “AI is the key to tomorrow’s economy. We have the will, the vision, and the partners.”
The ICT sector’s growth surpassed notable performers like wholesale and retail trade (14%), public administration (14%), and construction (13%), signaling a significant structural shift toward a more digitally powered economy.
AI’s Rising Role in the Economy
The government’s embrace of Artificial Intelligence (AI) is central to this transformation. At the World Economic Forum, Minister Ingabire announced that Rwanda expects AI to contribute up to 6% of GDP in the near future.
Rwanda is actively working with global tech leaders such as Google DeepMind, IBM, NVIDIA, and Carnegie Mellon Africa to build an AI-powered economy that improves services in:
| Sector | AI Transformation | Expected Economic Impact |
|---|---|---|
| Agriculture | Crop disease detection, drone planting | Increases yield, climate resilience |
| Healthcare | Diagnostic support, equipment management | Reduces avoidable deaths, boosts quality of care |
| Education | Adaptive learning, digital curricula | Personalized learning, broader access |
| Public Services | Data-driven policy, corruption tracking | Improved governance, service delivery |
| Business | Market intelligence, supply chain optimization | Faster decisions, increased efficiency |
Building the Foundations
The NISR dsta also shows that the growth in ICT is consistent with the government’s strategic focus on data, digital communication, and service modernization.
This follows a series of national initiatives, including:
- AI in Schools (2024): integrating data literacy into Rwanda’s education system
- Public-private tech partnerships to boost digital service rollout
- Investments in cloud infrastructure and local data centers
Despite the strong performance, officials caution that further investment in human capital, AI governance, and research & development is crucial if Rwanda is to sustain this trajectory and meet the 6% AI-GDP target.
Rwanda’s Economic Future Is Digital
The official recognition of ICT’s outsized role in the economy marks a tipping point.
Rwanda is no longer just experimenting with digital solutions; it is embedding technology at the core of its development model.
“AI is not just a technology—it’s a new way of thinking about the economy. With strategic data use and global capabilities, Rwanda can transition from a resource-based economy to a knowledge-based one,” said Dr. Nadine Uwase, an AI policy advisor, at WEF in January.
With a tech-savvy population, ambitious leadership, and mounting global partnerships, Rwanda is not just following global trends—it is racing ahead of them.
