Global economic growth is expected to continue declining in 2024, impacted by strict monetary policies, financial instability, and sluggish global trade. Against this backdrop, Rwanda has shown economic resilience thanks to strong consumer spending and growth in key sectors like services, mining, and construction. The labor market saw a robust recovery, with the most substantial reduction in unemployment since the pandemic. At the same time, inflation and widening trade deficits remain key challenges. To maintain its momentum, Rwanda’s GDP growth is projected to average 7.6 percent in 2024-2026, supported by private investment, tourism, and favorable agricultural conditions. Despite this strong performance, Rwanda faces significant challenges in skill development. Low educational attainment and a mismatch between market needs and educational outputs undermine economic competitiveness. Reforming the skills system is crucial for transitioning to a knowledge-based economy and meeting the needs of key sectors. Investing in technical and vocational education, targeted support for disadvantaged students, and mentorship programs can better align training with market demands. Strengthening partnerships between academia and employers, emphasizing digital skills, modernizing agriculture, and improving infrastructure are also vital. Sector audits across agriculture, manufacturing, and other industries highlight the need for tailored interventions to meet Rwanda’s labor market requirements. Expanding work-based learning opportunities, strengthening Sector Skills Councils, and increasing support for the Skills Development Fund will contribute to strategic economic growth. Developing a comprehensive skills development system can help bring Rwanda closer to achieving its Vision 2050 goals and preparing the workforce with the necessary competencies for socio-economic transformation.