Without private sector membership’s devotion, a nation has no economy, much less any chance to grow economically. The economy expands as they do. Conversely, it shrinks.
Particularly, in Rwanda, that belief takes on real meaning, as the private sector is believed to stand at the forefront of building an economy defined not only by numbers, but by shared purpose, future and determination.
To have a collective understanding of this idea, Private Sector Federation (PSF) representatives at the district levels have been organizing meetings across the country, with the latest held in Gakenke district, Northern Province on 8 October 2025.
The meeting aimed at discussing further strengthening of the federation, PSF membership contributions and to explain lanes for collective responsibility for Rwanda’s economic future.
It also aimed at discussing taxes and local revenues.
The (meeting) brought together the Chairperson of PSF in Gakenke district, the district revenue inspector, a representative from Ngali Holdings, the district DASSO coordinator, sector staff, and Executive Secretaries.
As the discussion unfolded, the room filled with a shared sense of purpose.
Speakers reminded participants that PSF contributions are not mere payments, but investments in the strength and unity of Rwanda’s business community.
“When we contribute to PSF, we are not just paying dues, we are building the foundation of our own success, and the country’s development. A strong federation means a strong business community, and a strong business community means a stronger Rwanda,” Daniel Mbaga, PSF Chairperson in Gakenke district said.
“Every entrepreneur should take pride in these contributions. They show our commitment to work together, to grow together, and to ensure that our private sector remains the driving force behind Rwanda’s development,” he added.
Each franc, he emphasized, helps to build a more organized and influential private sector, one capable of shaping the country’s economic future.
With the same spirit, similar meetings took place in several parts of the country, and others will proceed where they have not.
In today’s world, the strength of a nation’s economy often depends on how well its private sector is organized, contributes to national development agenda, and connects beyond borders for markets, innovation and investments.
Borrowing A leaf Chinese Federation Success Story
In 1949, the then Chinese President, Mao Zedong sought to transform its economy by reorganizing the private sector, first.
Four years later, that’s to say in 1953, All-China Federation of Industry and Commerce (ACFIC) was established; firstly, to unify and reorganize the private sector members, bring together private entrepreneurs, industrialists, and merchants under a single national organization that could align their activities with the goals of the Communist
Party and the State’s planned economy:
Secondly, to serve as a bridge between the government and the private sector with the federation’s mandate to act as a “bridge and link” between the government and private sector.
Thirdly, to guide ideological transformation of private entrepreneurs, and promote economic reconstruction and national development, after President Mao’s party, Communist Party of China (CPC) defeated Kuomintang in a Civil War, from 1945 to 1949.
The Kuomintang, or KMT was a reportedly nationalist party organized on a basis of democratic centralism.
“In China, the private sector’s role in driving innovation has never been more crucial. Major national scientific and research infrastructure is being further opened up to these private enterprises, allowing them to lead or collaborate on more groundbreaking projects,“ Qiu Xiaoping, vice-chairman of the ACFIC told China Daily in December, least year.
Today, according to 2024 data from ACFIC, private enterprises have become a key pillar of China’s innovation ecosystem, contributing over 70% of the nation’s technological breakthroughs, making up for more than 90% of national high-tech businesses and over 80% of national “little giant” companies.
The “little giants” are Chinese small and medium-sized enterprises recognized for their specialized expertise and innovation in the Chinese economy.
Almost in the same spirit that gave birth to China’s ACFIC decades earlier, PSF emerged five years after the 1994 Genocide against the Tutsi—a time when the country’s economy lay in ruins and the business community was struggling to find its footing.
Out of the devastation grew a new resolve to unite what was left of Rwanda’s entrepreneurs, rebuild trust in commerce, and lay the foundations for a private sector strong enough to drive national recovery.
Today, Rwanda’s private sector stands as the beating heart of the nation’s economy.
It drives an impressive 94% of employment, providing livelihoods for millions of citizens, and contributes nearly 60% of the annual national budget through taxes.
Behind these numbers are countless entrepreneurs, small business owners, and industrialists whose daily efforts—from bustling marketplaces to modern factories—fuel the country’s growth and sustain public services.
The private sector, once a community in recovery, has now become a believed engine powering Rwanda’s economic goal frequently mentioned in the Second National Strategy for Transformation, or NST2.
Private Sector at the Heart of NST2 Goals:
In August 2024, Rwanda’s Cabinet meeting chaired by President Paul Kagame, approved the NST2 built on 5 priorities carried on from the previous achievements of NST1.
It (NST2) is a 5-year strategy that runs from 2025-2029.
The NST2 targets achieving specific goals in agriculture- with a 6% growth to become more market oriented and sustainable with a productivity of more than 50% driven by an 85% expansion of key Agricole development infrastructure such as irrigated land, access to fertilizers and seeds, and boosting domestic animal production- many of which Rwanda has made primary strides.
In the area of trade, Rwanda’s ambitions are nothing short of bold. The country aims to double its exports—from $3.5 billion to $7.3 billion— a target that reflects both confidence and determination. At the heart of this drive is a renewed focus on expanding local manufacturing, with an emphasis on non-traditional exports and value addition.
New factories are rising across the country—processing agricultural produce, refining minerals, and producing goods that once had to be imported.
From pharmaceuticals and construction materials to packaging products, mosquito nets, and fertilizer blends, Rwanda is steadily transforming its industrial landscape, turning vision into tangible progress and positioning itself as a competitive player in regional and global markets.
Meanwhile, the collective devotion of private sector members—through strengthening the federation, and jointly charting pathways for growth and shared responsibility—will be the driving force that accelerates Rwanda’s economic future and propels the nation toward achieving its NST2 goals.
The writer is a communications specialist at Rwanda Private Sector Federation, and a former writer for Kigali Today
