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Economics: Rwanda Has No Minimum Wage. Here Is Why Its Introduction Is Still Far From Being Achievable

June 8, 2026
professormaurice
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Mwalimu :HAKIZIMANA Maurice

When asked why Rwanda does not have a legal minimum wage, the Prime Minister and Head of Government, Dr. Justin Nsengiyumva, replied:

“When we increase production, salaries will increase by themselves.”

By themselves? Really?

No. Things do not happen by themselves. They are planned. It is the responsibility of the government to develop roadmaps that define the actions to be taken, the methods of implementation, the timelines, and the expected results.

Rwanda’s Prime Minister and Head of Government, Dr. Justin Nsengiyumva : “salaries will increase by themselves.”

Yet in 2026, it is unacceptable for workers to receive a monthly salary that does not even cover one week of living expenses. The rising cost of living must be accompanied by an increase in workers’ incomes.

A salary should enable a person to meet essential expenses such as food, housing, clothing, healthcare, and school fees. Otherwise, the worker is being exploited. They work under poor conditions, and an employer who hires an underpaid, hungry worker who cannot even afford basic medical treatment ultimately gains little compared to the productivity that could be provided by a motivated and satisfied employee.

The Prime Minister’s response—that things will sort themselves out—is not convincing to workers, employers, economists, or students of economics.

In this article, I would like to revisit the measures that should have been included in public policies long ago in order to allow the economy to develop in a healthy manner and enable citizens to cope with rising prices.

The points I will discuss should have been implemented about twenty years ago so that the issue of a minimum wage would already be resolved today. However, it is not too late. If these reforms are launched now, the problem can be solved sustainably over the next twenty years.

This is not the first time I have written about monetary and economic issues. In 2024, I published an article entitled: “The Rwandan Franc Has Lost Significant Value This Year: What Are the Causes of This Depreciation?” (Ifaranga ry’u Rwanda ryataye agaciro cyane muri uyu mwaka: Guta agaciro k’ifaranga biterwa n’iki?)

In that article, I focused mainly on ways to strengthen the value of the national currency.

More recently, I also published an article entitled: The National Bank of Rwanda Significantly Raises the Key Interest Rate from 6.75% to 7.25%: What Does It Mean? What Will Be the Impact on Daily Life?

In that article, I explained how this measure allows banks to raise interest rates on loans, making borrowing more expensive, while also influencing the returns on savings.

Let us now turn to the issue of the minimum wage.

The Importance of a Minimum Wage (or Basic Wage)

A minimum wage offers several advantages for both workers and the state.

For Workers

  • It protects against extreme poverty by preventing wages that are insufficient to live with dignity.
  • It values work by establishing a minimum threshold that employers must respect.
  • It improves living conditions by enabling access to food, healthcare, education, and other essential needs.
  • It reduces abuse and inequalities in the labor market by limiting situations of exploitation.

However, under Rwanda’s current conditions, the introduction of a legal minimum wage remains difficult to achieve.

Here is what should first be put in place.

A. How to Sustainably Increase National Production

1. Revive Family Farming and Commercial Agriculture

A productive agricultural sector ensures food security, boosts exports, and creates jobs for a large share of the population.

2. Develop Numerous Small Industries Across the Country

The creation of factories, infrastructure development, and investment in economic activities promote employment and increase national production.

3. Restore Vocational and Technical Education Throughout the Country

Students completing primary school should have access to practical training in fields such as:

  • Carpentry
  • Pottery
  • Tailoring
  • Construction
  • Plumbing
  • Electrical work

These and many other vocational skills should be taught in Kinyarwanda so that they are accessible to everyone.

A skilled population is more productive, more capable of creating its own jobs, and more likely to generate innovations that stimulate economic growth.

4. Promote Modern Technologies and Innovation

The use of new technologies helps reduce production costs and time while increasing the profitability of economic activities.

B. The Main Challenge Remains Political: Good Governance and Security of People and Property

When a country is governed according to the rule of law, respects its citizens, guarantees freedom of enterprise, and ensures the security of economic activities without corruption or illegal levies, both investors and citizens work with confidence.

This confidence encourages the circulation of money within the country. Domestic and international trade increase incomes and production.

When citizens and the state save effectively—particularly through banks and investment funds—they have greater resources available to finance wealth-creating projects.

In Summary

A country’s economic growth and the improvement of its citizens’ standard of living depend mainly on:

  • Strong national production;
  • Investment;
  • Education focused on practical skills;
  • Technological innovation;
  • Good governance that does not disrupt economic activity, agriculture, or citizens’ savings.

All these factors contribute to creating jobs, increasing household incomes, and sustainably improving living conditions.

The rest is more a matter of politics than economics.

Have you understood the lesson? Until next time.

Take care of yourselves.

This world,

Author: HAKIZIMANA Maurice
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MwalimuHakizimana Maurice is a professional teacher holding a Master Meef in Education from Université Catholique de Paris and a degree in Humanities from Sorbonne Université. He also holds a professional certification in tourism and management awarded by the French Ministry of Labour and Solidarity (Paris Region). He is a teacher and staff member at the Cité internationale universitaire de Paris.

Professor Hakizimana Maurice is the author of the book “UTABA AMATEKA NTABONA ITAKA” (Editions Scribes).

To obtain a copy: https://sellercentral.amazon.com/nms/redirect/98e82759-1a8e-30da-b03d-97ecd6fa2281?nt=PRINT_LISTING&sk=BHA8IdY56n9BoLFaPNd1bWm5-xgcP2zJgEk5Dnxeqdwdhyo_EcOiXVfOw2gMApbV9-HvwpATOID5XhQ8TNzZwg&n=1&u=aHR0cHM6Ly93d3cuYW1hem9uLmNvbS9kcC8yOTMxMjY2MjIx 

Or https://www.amazon.it/Utaba-Amateka-Ntabona-Itaka-Afrikaans-ebook/dp/B0GTQZ4CBC?fbclid=IwVERDUARzok1leHRuA2FlbQIxMABzcnRjBmFwcF9pZAwzNTA2ODU1MzE3MjgAAR5RVB5nCFs18vEiS7yPXUyXUEqPXtBoQn2F2QK1WCT05f6qgP34szW8H_9TiQ_aem_FwzrWfruPAHM6PI_BPDZFA

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