Nairobi, 28 May 2019: Rapid and well-managed urbanization is essential for Rwanda to achieve its aspirations for growth. Urbanization generates enormous economic benefits by increasing density, which facilitates the transmission of knowledge and ideas, increases economies of scale and opportunities for specialization by reducing transport costs, and improving firms’ access to both critical services and a large pool of labor with a wide variety of skills. This was revealed by Rwanda’s Minister of Infrastructure, Honorable Claver GATETE during the First UN-Habitat Assembly taking place in Nairobi-Kenya.

Workers benefit through developing their human capital, for example ‘learning by doing’; through access to numerous job opportunities, which improves their bargaining power; and from close proximity to a wide range of goods and services. Importantly, these agglomeration economies mean that the more workers and firms are added to an urban location, the higher their individual productivity becomes – putting rapid growth on a sustainable path, as opposed to diminishing returns. International evidence suggests that a one percentage point increase in the urban population is associated with a 3 to 8 percent increase in a country’s per capita income.

Minister GATETE urged every country in developing economies to keenly support and work closely with UN-Habitat to adress urbanisation and housing challnges. There is a need for every country to support UN-Habitat in resource mobilization to curb down housing hurdles  as our cities continue to grow. My Government is committed to contineously forge cclose partnership with UN-Habitant in this area in order to achieve SDG goal 11“.

Urbanization is irreversible and inevitable but has to be guided in order to have an impact. ”In Rwanda, over the past two decades, the urban population has grown from a mere 4.6% to 18.4%, a very rapid rise in the spate of 25 years. Rwanda has an ambitious objective of accelerating the urbaanization to a portion of 35% urban population by 2024“.

In Rwanda, regulatory policies are in place for the rapid economic growth targeted until 2050, where urbanization will be economic engine to deliver dynamic transformation. The Government of Rwanda acknowledges the need for effective management of urban growth in a coordinated manner that will ensure socio-economic development”. This will ultimately lead to reduction in poverty and improve quality of life for all and deliver livable, safe, resilient, inclusive and sustainable cities, towns and villages. Rwanda’s strategy towards implementation of the National Urbanization Policy (NUP), embarks on reviewing of all City Master Plans to ensure that they are citizen-centered and aligned to National Development Goals. Additionally, the establishment of a spatial Development Framework (SDF) as an implementing tool to guide investments in socio-economic infrastructure”

The Government of Rwanda established Rwanda Affordable Housing Fund to promote affordable housing policy to fill the gap in the housing needs through public-private-partnership model. Rwanda should focus on delivering the fundamental drivers that link urbanization to robust economic growth – and less on setting targets for levels of urbanization itself. In essence this means reshaping public policy, prioritizing investments, and strengthening institutions along spatial, sectoral, and institutional dimensions.

“No country has grown to middle income without industrializing and urbanizing. None has grown to high income without vibrant cities. The rush to cities seems chaotic, but it is necessary. (World Development Report 2009).