Rwanda's ongoing growth requires increasing productivity, and big companies must lead the way. But too many are trapped by fear or hubris. The best hope for change? Middle managers. They need to take bold risks and make tough calls. Our future depends on it.
The Government and World Bank delivered a wake-up call with their recent report, Pathways to Sustainable and Inclusive Growth in Rwanda. It celebrates two decades of progress but also raises tough questions about the future.
Rising debt costs could make further government-led growth unsustainable. In most thriving economies, productivity drives long-term expansion. Yet in Rwanda, productivity has fallen over the past 15 years--an alarming trend that threatens to stall progress.
The second National Strategy for Transformation (NST2) outlines key policies to boost productivity, focusing on agriculture, infrastructure, education, and government services.
But most productivity gains come from the private sector, especially large firms, where management practices alone explain about a third of productivity differences between countries.
Rwandan managers, however, have significantly less experience than their peers elsewhere. Business dynamism is also weak--only 15% of businesses launch a new product at least every three years, one of the lowest rates globally.
NST2 is targeting the creation of 1.25 million productive new jobs, with a focus on small businesses and key industries like food processing and business services. A recent Kigali International Finance Centre (KIFC) skills survey outlines what it will take to meet this goal in finance.
The sector needs nearly 13,000 new hires by 2027, including thousands of specialists and senior managers. Yet 40% of firms say their employees lack key skills, and high turnover from talent poaching is already a serious challenge. To bridge the gap, KIFC calls for stronger mentoring, executive training, and the introduction of a skills levy.
Ultimately, the push for higher productivity will be won or lost at the company level, where individual leaders set the tone. My research on 30 Rwandan leaders highlights Rwanda's productivity challenges.
These leaders promote constructive behaviours that drive organisational performance, including self-actualization--the desire to innovate, improve, and excel--and encouragement--the tendency to support, develop, and build confidence in others by fostering a collaborative and growth-oriented environment.
They are also held back by people-pleasing tendencies like convention, the reliance on established practices and a reluctance to challenge norms or question authority, and avoidance, an aversion to conflict and unwelcome news. They hesitate to trust and focus too much on pleasing their superiors.
This restricts the space available for truly transformational work, which thrives in a culture of respectful disobedience.
The senior leaders I work with push themselves hard, logging long hours under intense pressure. Yet despite their efforts, they're often frustrated--managing passive subordinates, competing with ambitious peers, and fielding constant and distracting requests from superiors and government officials.
Many middle managers work hard and want to succeed, but they lack confidence and wait for approval instead of acting independently. Afraid of making mistakes, they stick to the status quo--delaying decisions, stifling agility, and holding back growth.
Senior leaders must create an environment where people feel supported to take risks and learn.
This means delegating effectively--setting clear expectations while providing subordinates with the insights, sponsorship, and resources they need to succeed. It also means letting go of micromanagement, focusing on celebrating the outcomes they want to see rather than criticising the ones they don't.
Crucially, leaders should be evaluated not just on short-term results but on the quality of talent they develop.
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Middle managers, in turn, must step up--asserting themselves respectfully, making decisions within their authority without seeking unnecessary approval, and taking full ownership of their areas of responsibility. By driving improvements in quality, efficiency, and value, they can create real impact.
With far more middle managers than senior leaders, the greatest returns will come from expanding discretion and accountability for as many people as possible. Senior leaders must focus on building cultures where middle managers can thrive.
If they do, Rwanda's biggest companies will become engines of growth--delivering higher-value work with the people and resources they already have. This will boost productivity and help Rwanda become a knowledge-driven, high-income economy.
The writer is the CEO of Transforming Engagements (TES) Ltd, a Kigali-based consultancy that helps organisations prosper by transforming leadership and culture.
