Rwanda’s pension fund has become a central engine of the economy, but research says its services-led investment model is failing to generate enough formal jobs or build domestic firms.
The Rwanda Social Security Board managed $2.07 billion in 2025, up from $212 million in 2012, and has helped finance Kigali’s transformation through holdings in banks, securities, equities and real estate.
That strategy has favored tourism and services over manufacturing and agro-processing, leaving unemployment at 12.4% in 2025 versus a 7% government target and pushing combined unemployment and underemployment above 50%.
The paper argues the fund has done little to develop local private companies’ technological capacity, reinforcing reliance on state-affiliated and foreign firms as lead investors across much of the economy.
Rwanda still has time to adjust because more than 60% of its population is under 25, but sustaining growth will depend on redirecting pension capital toward employment-generating sectors and stronger domestic businesses.