5.2. Private sector

Since employment facility in the agricultural sector is limited, by 2010 some 1,2 million people (200 000 households) will have to quit farming²². Since, at this time, the private sector is negligible, the only way to escape unemployment, is getting a job in the public sector. Labour absorption in this sector is limited, since government revenues are irregular and uncertain. As a consequence of these combined factors, a majority of the urban population works in the informal sector.

²²Ibid pg 5

Because of these problems, expansion of the private sector is urgently required. The development of micro-enterprises, based on the agriculture seems to attract government and aid agency interest. UNDP has already started a program to develop micro-enterprises in urban and rural areas. The industrial sector on the other hand does not present a realistic option due to lack of skilled labour, technology and the landlocked character of Rwanda.