How much Economic Inequality is there in Rwanda?
Rwanda has higher levels of inequality than many of its neighbours, but these disparities are decreasing.
The Rwandan Gini coefficient – the most prominent indicator of economic inequality – is 43.70 (as of 2016). This is significantly below the global average, which is somewhere between 60 and 65. However, Rwanda’s inequality rate is high for the region, and is more economically unequal than its regional partners Kenya, Uganda, Tanzania and Burundi.
There is a consensus that the rate of inequality is gradually being reduced. While some uncertainties remain, given the lack of extensive economic data, there is a broad consensus that Rwandan inequality rates are falling. Indeed, its current Gini coefficient is a significant reduction from its peak of 52 in 2005.
World-leading developmental economist Paul Collier has said that such a reduction is ‘deeply impressive’, given that it has taken place alongside rapid GDP growth and poverty decreases.