Market System Analysis - Rwanda

Laying a foundation for better working conditions

Revealing the construction value chain to enhance working conditions and fight informality in Rwanda

Short description

Not many market systems development projects are specifically tasked with trying to improve job quality for informal workers, but that’s just what the Sida funded, Promoting Decent Work in Rwanda’s Informal Economy project is trying to do. And Rwanda’s building construction sector presents an interesting opportunity to do it. Here, the sector is rapidly growing into an economic force, while at the same time, is being built off the backs of a workforce where 98% are informally employed. Most of these informal workers have low skills, are poorly paid and have limited contract security. A typical low-skilled worker rotates from construction site to construction site, constantly in search of the next temporary contract to support their families. Along the way, they are exposed to considerable safety risks, have limited social protection and lack opportunities to upskill into higher demand, more secure and better paid positions.

So where should a market systems project best focus its resources to improve job quality and the livelihoods of these informal workers? This market systems analysis in Rwanda’s building construction sector provides a starting point – it takes a deep-dive into understanding the key market constraints to better job quality and root causes of these constraints. The analysis also sets-out potential intervention areas which can address these root causes and in the process, strengthen the building construction market system and improve the job quality for the informally employed.