Housing Finance in Rwanda

Overview

This profile is also available in French here.

To download a pdf version of the full 2021 Rwanda country profile, click here.

Rwanda is one of the most densely populated but least urbanised countries in Africa. According to the 2016/17 Integrated Household Living Conditions Survey (EICV 5), 38.2% of Rwandans were living below the national poverty line. Approximately 18.4% of Rwanda’s population lives in urban areas. This is projected to rise to 35% by 2024, in line with the National Strategy for Transformation1(NST-1). Approximately 61.3% of Rwanda’s urban population live in informal settlements. Rwanda has approximately 79 informal settlements, most of which are located in the city of Kigali and Rubavu district.

As a result of COVID-19, Rwanda’s economy declined by an average of 4.1% in the first three quarters of 2020 but steadily recovered in the second half of 2020. The country’s housing and construction sectors had continuous growth until 2020. However, the decline in economic performance due to the pandemic and the loss of income affected the real estate sector negatively. It is estimated that the housing sector contributes 10% to Rwanda’s GDP. The first quarter of2021 had a 3% increase in the contribution of real estate activities to GDP. Inflation in the housing sector dropped to 1.9% in the first quarter of 2021 from 4.8% in the second half of 2020.

The government’s expenditure policies for the fiscal year 2021/22 align with the NST-1 priorities and objectives. Consequently, the economic transformation pillar has been apportioned the largest share of the budgeter sources, accounting for 58.7% of the total budget, while social transformation and transformational governance will account for 27.2% and 14.01% respectively. Pursuant to the NST-1 strategic objectives, promoting urbanisation is one of the priority areas identified for resource allocation in the 2021/22 fiscal year. This will involve implementing urban development projects in secondary cities and supporting affordable housing projects with basic infrastructure.

Find out more information on Rwanda’s housing finance sector, including key stakeholders, important policies and housing affordability:


Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2021 edition, which has up-to-date profiles for 55 African countries.

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