The UN Special Rapporteur on extreme poverty and human rights, Olivier De Schutter, has issued a cautionary statement to Rwanda regarding its fiscal strategies, particularly concerning the cuts in social protection funding. Speaking on Rwanda’s budgetary approach, De Schutter highlighted the necessity for wealth distribution to safeguard populations living below the poverty line, especially those in rural areas.
While acknowledging Rwanda’s substantial advancements in reducing poverty, De Schutter expressed concern that the nation’s gains could be severely compromised if it goes through with planned reductions in social protection funding. Rwanda’s budget for 2024-2025 indicates a 22 percent reduction in social protection reserves, with further cuts anticipated next year. He emphasized that support for social services is heavily reliant on foreign donors, whose contributions are becoming increasingly erratic.
The urgency of the situation is further underscored in De Schutter’s previous reports, which noted how Rwanda has lifted approximately 1.5 million people out of poverty between 2017 and 2024. However, the challenge remains significant, with about 3.6 million people still living below the poverty line amidst a climate of shrinking international aid and national budget constraints.
In this context, recent statistics place the current unemployment rate at 11.1 percent, predominantly affecting rural residents. The World Bank Group has pointed to low productivity levels in Rwanda, which are partly due to infrastructure deficits, slow innovation, and inefficiencies in resource allocation. Although Rwanda’s GDP is projected to grow through contributions from tourism, construction, and manufacturing, the fruits of such economic changes predominantly benefit more educated workers, thereby exacerbating inequality.
Rwanda is at a crossroads, and the international community, alongside local policymakers, must ensure that economic progress does not adversely affect the most vulnerable sectors of its population.
For more on De Schutter’s analysis and recommendations, read the full report on JURIST.