The latest Index of Industrial Production (IIP) shows that the upturn was powered by mining and manufacturing, which together contributed most of the gains. Mining and quarrying output surged 27.9 percent, while manufacturing grew 11.2 percent year-on-year.
The performance lifted the sector's annual average growth rate to 6.8 percent, signalling renewed momentum in Rwanda's industrial economy.
Within manufacturing, non-metallic mineral products, which include cement and construction materials, jumped nearly 50 percent, adding 2.4 percentage points to the overall index.
Metal products, machinery and equipment climbed 18.2 percent, and furniture and other manufacturing rose 46.9 percent. However, the data showed a slowdown in some consumer goods: food processing fell by 6.2 percent, while beverages and tobacco slipped 1.6 percent.
Energy output also supported growth, with electricity generation up 7.0 percent, while water supply and waste management saw a modest 1.7 percent increase.
The IIP has recently been rebased to 2024, a technical change that updates the weights assigned to each subsector to better reflect today's economy. NISR explained that rebasing helps keep the index accurate as new industries emerge and the structure of production shifts.
"Over time, the economic structure changes (new industries emerge, some decline, relative sizes shift), keeping an old base year can make the index less relevant, less reflective of the current structure, and harder to interpret," NISR explained its decision to review the previous 2017 base year.
The industrial sector remains a key driver of Rwanda's economic transformation agenda, with the government targeting stronger local production to reduce import dependence and support exports. As of 2024, manufacturing represented 68.1 percent of the country's formal industrial base by gross value added, while mining accounted for 15.8 percent
The Index of Industrial Production is a key economic indicator used to measure short-term industrial trends in Rwanda's formal sector, excluding construction activities. It complements the country's quarterly Gross Value Added statistics and provides policymakers, investors, and analysts with timely insights into the health of Rwanda's industrial economy.
Wycliffe Nyamasege
Source : https://en.igihe.com/business-62/article/rwanda-s-industrial-output-expanded-by-8-3-in-august-2025
