The purpose of this paper is to explore the constraints and opportunities facing the
industrial sector in Rwanda by analysing patterns of productivity, exports and
investment using data from the first comprehensive industrial survey in Rwanda
(2011). The findings are then compared with the performance of manufacturing firms
in Ethiopia and Kenya.
The industrial sector in Rwanda has remained fairly stagnant in the past decade and
accounted for 14% of GDP in 2010. The main production activities are focussed on
agro-processing and construction, and exports rely on volatile commodities like tea,
coffee and minerals. Our findings show significant differences in performance across
manufacturing firms in Rwanda – firms with any foreign ownership, those located in
Kigali and exporters tend to outperform their counterparts. Our findings also show
that large firms in Rwanda have higher levels of labour productivity which could be
explained by the fact that they have on average higher capital stock per worker, more
foreign ownership and tend to export.