◄Unit 4: Forms of EnterprisesUnit 6: Customs Procedures►

Unit 5: Sectors of Production

  • Unit 5: Sectors of Production

    TOPIC AREA: ENTREPRENEURIAL CULTURE

    SUB-TOPIC AREA: CONCEPT OF BUSINESS ACTIVITIES

    Key unit competence:

    To be able to analyse the importance of various sectors of production in Rwanda’s economy.

    Knowledge to be acquired

    Importance of different sectors of production in Rwanda’s economy.

     Characteristics of each sector of production in Rwanda.

     Components of the Rwandan primary, secondary and tertiary sectors.

     Relationship between the sectors of production.

    Application to daily life

    Classify different business activities in terms of the sector of production.

     Examine the importance of primary,secondary and tertiary sectors to an economy.

     Examine the relationship between the sectors of production.

     Choose a suitable sector to engage in.

     Recognise that there are various sectors one can get employed.


    Introductory Activity




    5.1: The Primary Sector of Production


    ACTIVITY 5.1



    In Senior one and two, you looked at work in the society, types of work and role of work in socio-economic development. Using your knowledge of work,answer the following questions:

    1. Analyse and explain the activities taking place in pictures A, B, C and D.

    2. Would you say that activities in pictures A to D belong to the primary sector? Why?

    3. What do you think are the characteristics of the primary sector?4. Asses the importance of the primary sector?

    The primary sector of production involves the direct use of natural resources. It basically involves extraction of raw-materials from nature. In less developed economies, the primary sector comprises the biggest part of the economy.

    The industries engaged in the extraction of natural resources include: agriculture, forestry, fishing, mining and quarrying and so on. The primary sector is usually most important in less-developed countries, and typically less important in industrialised countries.

    Forms of Primary Sector of Production
    The primary sector of production comprises the following forms of production: agricultural farming, fishing and fish breeding, livestock farming, mining and quarrying and lumbering.

    5.1.1: Agricultural Farming

    Agricultural farming refers to the practice of rearing animals and growing crops. It can be categorised with the following types of farming:

    a. Subsistence farming

    Subsistence farming refers to the growing of crops mainly for home consumption. Its production is neither intended for industries nor exported but largely consumed by the farmers themselves and the local population. This is the most common type of farming practiced by developing countries and Rwanda in particular. It remains the most popular type of agriculture today in Rwanda.


    b. Cash crop farming (Commercial farming)

    Cash crop farming refers to the growing of crops mainly for sale. The crops can be sold either locally within the country or exported (outside the country). For example, Rwanda exports coffee, tea, rice, potatoes and bananas to other countries.

    Cash crop farming is usually done in either one of the following ways;
    • Intensive farming: This is an agricultural production system characterised by a significant use of inputs. It aims at maximising production through the use of the factors of production such as land and agricultural materials.
    • Extensive farming: This is an agricultural production system that does not maximise on the productivity of the factors of production like land. It is generally practised on large scale and is characterised by relatively weak per hectare productivity.

    c. Plantation farming

    Plantation farming is the growing of one type of crop using scientific methods (mechanisation and application of fertilisers, pesticides and herbicides) on a large scale. It can also be referred to as the growing of one crop on a large piece of land for sale.

    The crops grown under plantation farming include: cotton, coffee, tea, cocoa, sugar canes, sisal, oil seeds, oil palms, rubber trees, and fruits.Plantation farming is aimed at increasing production for domestic use and export. This type of farming is commonly practiced in tropical areas.


    Common characteristics of plantation farming

    • Plantation estates are very large, covering thousands of hectares and are normally run by huge foreign or local private companies.
    • Most plantations in Africa were established by colonialists.
    • Plantations are labour intensive in that they employ a large number of workers. In the case of labour strategies, workers are recruited from neighbouring countries, leading to the development of plural societies, that is, societies made up of different ethnic groups.
    • Plantations are also capital intensive. Many plantations use a lot of money in their investments. They have their own factories for processing crops. They also have their own infrastructure. For example, light railway lines and roads for the transportation of harvested crops to the factory and the market.
    • Plantations usually specialise in the production of a single crop. In other words, they practice what is known as monoculture. In a few cases, two or more different crops are grown.
    • Crops on plantations are normally intended or grown for export. Only few countries have agro-based industries which process plantation products.
    • Many plantations increase their output by buying local produce or by buying the same product from small scale farmers.
    • Plantation management provides housing, food and medical facilities and at times elementary education to their employees within the plantation.
    Advantages of plantation farming

    • Increased production (output): Plantation farming utilises more acreage under cultivation, mechanises operations, controls pests and diseases and this leads to higher produce than any other farming system. As a result, plantation farmers increase production. Where they are engaged in food production, they help to increase the national stock of food products.
    • Provides raw materials to the manufacturing industry: Plantation farming provides raw materials to feed local and international manufacturing industries. The cultivation of pineapples, oranges and mangoes in plantation farming serves as raw materials for the juice manufacturing industries. The production of cocoa and coffee also serve the confectionery industries.

    • Lower cost of production: The operations carried out on plantations are cheaper in the long run. This is because the farmer employs more efficient methods of production such as ploughers, harrowers, planters, and harvesters. The farmer is able to control other variables like water supply through irrigation and is able to farm throughout the year, in some cases. This lowers the costs of production.
    • Leads to development of infrastructures: Plantation farms that depend on electricity extend electricity to the community and also construct roads to aid the movement of goods and equipment. Schools and hospitals are also constructed to cater for the education and medical needs of the plantation employees and their children. This leads to the development of infrastructures in areas where plantations exist. In the end, the surrounding areas benefit from such infrastructure.
    • Stimulates urbanisation: Where plantation farms exist, public facilities such as roads, railways, ports, towns, schools, hospitals and the supply of electricity and water also exit leading to urbanisation of such areas.
    • Eradication of pests and diseases: Plantations are also able to undertake greater scientific research and this greatly leads to eradication of pests and diseases. For example, one large sugar company was able to employ a large research staff to produce a strain of sugar cane resistant to leaf-scald disease.
    • Lower prices of products: Due to mass production under plantation farming, prices of such products are lowered in response to the forces of demand and supply.
    • Creates employment as it requires many workers: In plantation farming, there is increased need for personnel to manage crop growing and researching. Some crop processing and manufacturing industries are set up to satisfy the demand for crops. Encourages local industries like agro-based processing industries.

    • Source of foreign income: Plantation farming is a very high foreign income earner for many countries in the world. In Rwanda, the production of coffee, tea and other non-traditional agricultural export commodities earn Rwanda foreign income.

    Disadvantages of plantation farming

    • Destruction of natural rain forest: For plantation farming to be carried out, there must be large acreage of land. This leads to the destruction of natural rain forest of a country. Forests have to be cleared and turned into farmlands to cultivate cash crops. Once this happens and no conscious effort is made toward reforestation, the negative effects of deforestation set in.
    • Covers extensive piece of land: To set up a plantation farm, you need a large piece of land which might not be readily available in some areas. Also existing plantation farms desire to increase their acreage under cultivation. This forces some plantation farmers to take up land which would have been used for other purposes such as animal rearing and settlement.
    • Difficult for new entrants to join: The increased demand for more land for cultivation coupled with the size of land available for farming has resulted in the hiking of the price of the land. This makes it difficult for other people, especially young farmers to acquire cheap farm lands to enter plantation farming.
    • Some plantation crops are perishable: Some crops cultivated under plantation farming like fruits and vegetables are perishable. So farmers need to acquire improved technology to preserve them if they are not sold in time.
    • Threat to the environment: Plantation farmers use a lot of chemicals to control pests and diseases on their farms. Some of these chemicals have certain components that are harmful to the environment, animals and hwnan survival. The operations of commercial farmers therefore poses a huge threat to the environment and subsequently to the human race.
    Test skills acquired 5.1

    1. Read and analyse the statements in the table below,thereafter state TRUE or FALSE.

    2. Ndoli wants to engage in the primary sector,he specifically wants to practice agriculture. Tell him the different categories of agricultural farming.

    d. Forestry plantation


    Forestry plantation is the science of planting and caring for forests and the growing and management of timber. It can also be defined as the cultivation and long-term management of trees on marginal agricultural land. Plantations are generally even aged, planted and managed in rows, consist of a single species (sometimes two or three) and cover a large enough area to provide a suitable return on investment.


    Forestry plantation needs to be relatively low-maintenance, provide a productive land-use and have the potential to supplement farm income, benefit the overall environmental stability of the property and fit in with the primary production enterprise or with the lifestyle objectives of the farm.

    Did you know?A forest is not simply an accumulation of trees, but is itself a society, a community of trees that mutually influence each other, thus giving rise to a whole series of new phenomena that are not the properties of trees alone.

    Advantages of Forestry Plantation

    • Forestry contributes to food security, nutrition and livelihoods in several ways, including as a direct source of food, fuel, employment and cash income.
    • Forests are fundamental to the survival of forest-dwellers. They are also important providers of ecosystem services including;
    1. ƒMaintaining or restoring soil fertility.ƒ
    2. Protecting watersheds and water courses.
    • For most of the year, herders in arid and semi-arid lands depend on trees as a source of fodder for their livestock.
    • Controls soil erosion and its processes.
    • Act as shade and shelter for livestock and man.
    • Act as windbreaks.
    • Timber production.
    • Increased capital value of lands.
    • Soil protection and production.
    • Aesthetic improvements − the appearance of trees in the landscape, landscaping, screening.
    • Water table and salinity reduction.
    • A long-term, low management-input land use.
    • Conservation outcomes such as native biodiversity and wildlife corridors
    • Long-term economic and environmental security.

    5.1.2: Fishing and Fish Breeding (Pisciculture)


    ACTIVITY 5.2

    Use the library or internet to research on the following and thereafter present your answers to the class for a discussion.

    1. Fishing
    2. Fish breeding
    3. Artisan breeding and industrial fishing
    4. Livestock farming.
    5. Traditional rearing and modern rearing
    6. Bee keeping

    From activity 5.2, Fishing is the catching of aquatic animals from water bodies such as oceans, ponds, lakes, and seas. It is practiced by fishermen for leisure or as a profession.

    There are various fishing techniques and machinery used depending on the species being caught, the environment and the technology used in fishing.Fishing is also an occupation of catching fish for a living.

    Types of fishing

    There are different types of professional fishing which include:

    1. Pisciculture: This refers to the rearing of fish in controlled conditions. This type of fish husbandry is practiced in areas that are partially or entirely enclosed in concrete or plastic pools, lobster pots or giant cages. This is an intensive method of fish production. The youngfish (fingerlings) are obtained from other pools where fish eggs are hatched. They are then fed with granules and harvested once they have attained the desired size.

    2. The artisan or inshore (small scale): This is the most common type of fishing and it is practiced by many people. It uses small sized ships equivalent to 6 to 25 metres, usually with 2 to 5 crew members per ship. The crew members take several hours over a number of days to carry out the fishing exercise.

     

    3. The industrial or deep sea (large scale) fishing: Under this type of fishing, fish and other aquatic animals are caught on a largescale. It is mainly carried out using trawlers of30-50 metres for a period of10-15days(mainly on continental plateauand coastal areas) in seas like Mediterranean Sea.Fish is mainly processed at the coast.

    5.1.3: Livestock Farming


    ACTIVITY 5.3

    Use the library or internet to research on the following and thereafter present your answers to the class for a discussion.
    1. What are the various forms of livestock farming?
    2. Discuss the importance of livestock farming carried out in your community.

    From activity 5.5, livestock farming is the rearing of animals for food and for other human uses. Livestock farming animals are reared for sale to earn profits. The word‘Livestock’ applies primarily to cattle or dairy cows, chickens, goats, pigs, horses and sheep. Today, even animals like donkeys, mules, rabbits and insects such as bees are being raised as part of livestock farming. Livestock farming (animal husbandry) entails activities that aim at multiplying the domestic animals which are reared.

    Livestock farming is classified in the following ways:-

    1. Modern rearing: This is a practice wherethefarmer aims at increasing the productivity of animals. This is done by shortening the gestation period of the animal and by reducing the influence of the surrounding environment that may negatively affect production. In addition, the farmer keeps the animals in enclosed structures where they are provided with food and water. This type of animal husbandry is also characterised by significant use of mechanisation (technology).

    2. Traditional/intensive rearing: This refers to the rearing of cattle or other animals like goats, sheep, and poultry with little or no use of practices that improve breeds or increase productivity. Traditional cattle keeping on a large scale is largely practiced in the Eastern part of Rwanda in the districts of Karangazi and Nyagatare.



    3.Apiculture (Bee keeping): This is the rearing of bees aimed at producing beehive products such as honey and wax. The bee keepers have to provide bees with shelter and take care of their environment then harvest the beehive products.

    4. Piggery: This refers to the rearing of pigs for commercial purposes. Pig farming has grown in Rwanda and people have realised that it has the highest returns.


    5.1.4: Mining and Quarrying


    ACTIVITY 5.4

    Use the library or internet to research on the following and thereafter present your answers to the class for discussion.
    1. Mining
    2. Quarrying
    3. The importance of the primary sector.

    Mining refers to the act of extracting ore or minerals from the earth’s surface. It involves the act of digging underground to extract minerals such as copper, cobalt, gold, silver, zinc, lead, diamond and other valuable minerals.The extraction of sand and gravel is also part of the mining activities.

    Quarrying refers to the extraction of stones and other materials from rocks. These can be used for construction of buildings,roads and so on.


    5.1.5 Lumbering


    Lumbering is the cutting down of trees for timber.Timber is mainly used for construction of houses, making furniture and decoration. You can plant trees in large numbers and :make lumbering a trade. In this case, lumbering becomes the trade of cutting or preparing or selling timber

    Importance of the Primary Sector to the Economy of Rwanda

    • The primary sector provides employment opportunities for many people.
    • As people carry out agricultural activities, they earn income which they use to acquire necessities.
    • It is a source of food for human consumption. The primary sector is a source of food to the people hence improves peoples’ standards of living.
    • It is a source of income for the state. Government collects taxes from the primary sector activities such as agriculture, lumbering, fishing and mining.
    • It is a source of medicine. Forestry plantations contain various trees which are used as medicine and so on.
    • It offers raw materials for other industries. Manufactured industries use inputs from the primary sector such as milk, sugarcanes, maize, beans and so on.
    • Leads to development of infrastructure such as roads, hospitals, schools, entertainment centres in the economy. The infrastructure is meant to connect the primary to the secondary sector.
    • Widens the tax base: People who are employed under the primary sector pay the government taxes such as VAT and PAYE.Also the businesses in the primary sector pay taxes to the government thereby increasing government revenue.

    5.2: The Secondary Sector of Production


    ACTIVITY 5.5

    1. What do you understand by the term secondary sector?
    2. With specific examples,mention the various types of industries in Rwanda.
    3. Discuss various raw materials used in production of various products in Rwanda
    4. Outline the different products that are produced by the different industries in Rwanda.
    5. What is the importance of the various types of industries to;
          (a) the community?
          (b) the country

    The secondary sector of production involves the transformation of raw materials (natural resources) into finished products ready for consumption. This sector adds value to the raw materials from the primary sector. This is the manufacturing and assembly process.

    The secondary sector is concerned with using raw materials from the primary sectors, for example, iron and coke to produce finished goods such as cars, sugar canes used in the production of sugar, cocoa beans and coffee beans used in the production of beverages.These manufactured goods are then sold in the tertiary sector.


    Forms of Secondary Sector

    There are four forms of the secondary sector, i.e, agro-pastoral, agro-food processing, handicraft and manufacturing industry.

    a. Agro-pastoral industry

    The agro-pastoral industry involves the transformation of animal raw materials into semi or finished food products. Examples of raw materials from animals used in the agro-pastoral industry include: milk, meat, hides and skins, horns and many others. These raw materials undergo transformation before brought to the market. Examples of agro-pastoral industries in Rwanda include: Inyange industry and Nyirangarama industry.


    b. Agro-food processing industry

    Agro-food processing industries transform agricultural products into finished food products. The raw materials used in the agro-food processing industries are plants and fruits. These raw materials undergo processing before brought to the market for consumption.


    For example, cassava is processed into cassava flour, maize is processed into maize flour, packed and distributed on the market, fruits are processed into juice ready for consumption.Agro-pastoral and agro-food processing include: the meat industry, the fish industry, the fruits and vegetables industry, the fatty crops industry (which produces oil and margarine), the dairy industry (which produces ghee, yoghurt, cheese and all other milk products), the breweries (that produce alcoholic and non-alcoholic drinks) and so on.

    c. The handicraft industry

    The handicraft industry is where production or manufacturing is done manually and there is no use of automated machines. This mainly involves making a piece of work by hand. A craftsman is a person who is involved in manual work and does not use automated machines. The craftsman uses traditional techniques to make various items. The craftsman is assisted by family members or apprentices who are on training. Examples include: the basketry, pottery and carving industry. A craftsman creates and innovates various things.


    d. Manufacturing industry

    The manufacturing industry transforms/processes raw materials from the primary sector into fmished products. Manufacturing industries include: chemical industries, metal fabrication, wood, publishing industries, rubber and plastic industries and so on.Examples of products from the manufacturing industries include: furniture, paper, leather, machines, tobacco, textiles, tiles, soda, beers, whiskeys and so on.UTEXRWA and INYANGE are examples of manufacturing industries in Rwanda.


    Importance of the Secondary Sector to the Economy of Rwanda

    • Many people are employed in the secondary sector.
    • Acts as source of income to the state. The secondary sector provides the highest source of revenue to the government through direct and indirect taxes.
    • Offers market for agricultural products. The secondary sector buys inputs from agricultural products which are used in the production of finished products.
    • It provides consumer and capital goods. The secondary sector provides both consumer goods (finished products ready for consumption) and capital goods (which are used in the production of other goods).
    • Participate in community development programs.
    • The secondary sector produces goods that are consumed by the society. This improves on the quality of life of the population.
    • Increases a country’s foreign income. Some manufacturing enterprises produce for both local and international market This greatly contributes towards the foreign income the country earns thereby improving balance of payments of a country.

    5.3: The Tertiary Sector


    ACTIVITY 5.6

    1. Identify the various types of enterprises in the tertiary sector that you know in your Country.
    2. Outline the importance of the tertiary sector in your country.

    The tertiary sector involves the provision of services to consumers and businesses. Services provided by the tertiary sector include: education, medicare, communication, transportation, entertainment, banking and insurance, financial and ware housing services.

    Employees in the tertiary sector include: pilots,lawyers, chefs, doctors, teachers, accountants, judges. and so on. The tertiary sector makes up 80% of the labour force today.The tertiary sector is one of the three types of industries in a developed economy. the other two being the primary and the secondary sector. As an economy becomes more developed, it shifts its focus from primary to secondary and tertiary sectors.

    Note: The tertiary sector is split into two main categories. The first is made up of companies in the business of making profits, such as those in the financial industry. The second comprises the nonprofit segment, which includes services such as state education.

    Examples of tertiary industries include: telecommunication companies, hospitality/tourism industry, transportation, education, warehousing, mass media, healthcare/hospitals, information technology, waste disposal, consultancy, gambling, trade, real estate, and so on.

    Below is the detailed explanation of the forms of the tertiary sector.

    a. Communication

    Communication is composed of telecom and postal services which are considered as important components of the service sector.Telecommunication is the fastest mode of communication developed in the country. Telecommunication services include the telephone services, telexservices, telegrams, fax services,internet and broad band services. and radio and television services.

    Rwanda telecom service has proved to be an international success story as the sector has been witnessing commendable growth over the past few years. Examples of enterprises in the communication services in Rwanda include: Mtn,Tigo. Airtel and Safaricom.


    b. Transportation

    Transportation refers to the carrying of commodities or people for a fee from one place to another. A person may transport goods for him/herself or for someone else at a fee. Transportation in Rwanda is carried out under four modes, i.e, road, railway, air and water.

    Road transport is the most important mode of transport in Rwanda as it covers every corner of the country. Examples of transport companies in Rwanda include; Volcano, Horizon agencies, Fidelity, RwandaAir, Ritco, Jaguar, Trinity, and so on.


    c. Banking and insurance

    A bank is a financial company that collects individuals’ and organisations’ savings, keeps them as deposits and gives loans and other services to its customers.Insurance is a service that involves giving a defined compensation to a person, an association or an enterprise in case an unexpected risk takes place.


    d. Warehousing

    A warehouse is a store for goods and merchandise.

    The act of depositing goods and merchandise in a warehouse is called warehousing. Warehousing is a service provided by a warehouse owner to help traders keep their goods safe until they reach their final destinations.

    Warehousing services are considered as an integral part of both inbound and outbound logistics, as goods produced have to be stored in different geographical locations of the country before shipping and dispatch as per demand and order flows received from different destinations. In Rwanda, the most important component of warehousing is agricultural storage for agri-produce, food-grains, fertilisers, manures and so on.

    Other components of warehousing include: industrial warehousing for industrial goods, import cargo and excisable cargo;inland container depots (ICDs) or container freight stations (CFSs) for facilitating import and export trade; and also special warehouses for cold and temperature-controlled storage. Warehousing services in Rwanda are in Magerwa−Gikondo.


    Importance of the Tertiary Sector

    The tertiary sector is important in the following ways:

    • Supports the manufacturing sector: In addition to the continuing growth of the service sector, the role of services in the manufacturing sector has been increasing. With increasing automation and the use of computers in the design of a product and its manufacturing process, technical and professional staffs have a greater role in the actual production of the product than unskilled workers. Thus, in the factory of the future, the production process may be guided by design engineers, computer operators, and production planners.
    • Improves labour productivity: The tertiary sector greatly contributes towards improved labour productivity. Better technology has enhanced improved labour productivity leading to a higher output of agricultural and manufactured goods with less labour. This has increased incomes of workers which they spend on services and also spare labour to be able to work in the more labour intensive tertiary sector.
    • Provision of employment: The service sector employs more than two thirds of the working population and contributes more than 60 per cent to the gross national product. For the first time in history, investment per office worker now exceeds investment per factory worker. With the continuing trend towards a service economy, a greater proportion of future operations managers will be employed by the tertiary sector.

    • Leads to improved standards of living: A growing service sector is a sign of increased standards of living in that it enables consumers to enjoy more leisure based service activities, such as tourism, sport and entertainment.
    • Improvement in quality of life: The tertiary sector has contributed a lot towards human development in our country. The tertiary sector has rendered valuable services such as, health, education, information technology and information technology enabled services, skill development, tourism, sports, cultural services which are largely responsible for human empowerment.
    • Development of infrastructure: The tertiary sector plays an important role in developing, expanding and management of infrastructure with a special emphasis on development of transportation and communication services. In a developing country like Rwanda. the importance of development of infrastructural facilities is quite high.
    • Development of social services: The tertiary sector also plays an important role in the development and expansion of social services such as sports, cultural services and so on. Sports promotes physical fitness and develops human personality which also played an important role in national identity, community and international bonding.
    • Preserves and promotes culture: Cultural activities or services include recreation, entertainment, radio and TV broadcasting besides other related cultural services. To meet the objective of preserving and promoting all forms of art and culture, a variety of activities are being undertaken by the government of Rwanda.
    • Facilitates trade: The tertiary sector plays an important role in raising the volume of exports in the country. With services like advertising, warehousing, transportation and banking which act as aids to trade facilitate the exchange and delivery of goods from the place of manufacture to the customers’ premises. This is mainly through transport.

    Test skills acquired 5.2

    1. Read the paragraph extract below and answer the questions that follow:

    Mr. Kamuhanda is a qualified senior doctor at King Faysal Hospital and an entrepreneur who involves himself in a wide variety of activities that generate income for him.

    He grows a variety of crops such as maize, bananas, cassava,onions; rears fish, chicken, cattle and pigs. He processes the maize that he grows into maize flour (posho), packs it in sacks, brands it and transports it to the market for sale using his delivery van that he rents out to a firm which pays him a monthly rental incomes of 300,000 Frw.

    Using the case study above,classify the identified activities into their respective sectors of production, that is;


    2. Referring to (1) above,give other examples of activities that fall under the mentioned sectors of production by filling in the table below.



    Unit Summary


    Sectors of production are: primary,secondary and tertiary sector.

    Primary sector is that sector of an economy which makes direct use of natural resources.

    Importance of the primary sector to the economy of Rwanda

    • Provides employment opportunities to the people of Rwanda.
    • Source of food for human consumption. Source of income for the state.
    • It is a source of medicine.
    • It offers raw materials for other industries.
    • Leads to development of infrastructure in the economy
    • Widens the tax base.
    Secondary Sector is that sector of the economy which transforms resources from their natural form into finished products.

    Forms of secondary sector

    • The handicraft industry.
    • Agro-pastoral industry
    • Agro-food processing
    • Manufacturing industry.

    Importance of the secondary sector to the economy of Rwanda

    • Offers employment opportunities.
    • Acts as a source of income to the state.
    • Offers market for agricultural products.
    • It provides consumer and capital goods.
    • Participates in community development programs.
    • Produces goods that are consumed by the society.
    • Increases a country’s foreign exchange.

    The tertiary sector involves the provision of services to consumers and businesses.
    Examples of services

    • Transportation
    • Banking and insurance
    • Warehousing
    • Communication Services
    Importance of the Tertiary Sector

    • Provides employment to the population of Rwanda. Leads to improved standards of living.
    • Supports the manufacturing sector.
    • Improves labour productivity.
    • Improves quality of life.
    • Development of infrastructure.
    • Development of social services.
    • Facilitates trade.

    Unit 5 Assessment


    1. (a) What do you understand by the term primary sector.
        (b) Explain the various examples of activities in the primary sector.
        (c) What is the importance of the primary sector?

    2. (a) What do you understand by the term secondary sector?
        (b) Explain the various examples of activities in the secondary sector.
        (c) What is the importance of the secondary sector?

    3. (a) What do you understand by the term tertiary sector?
        (b) Explain the various examples of activities in the tertiary sector
        (c) What is the importance of the tertiary sector?

    4. Identify the different business enterprises under the different sectors of production.



    ◄Unit 4: Forms of EnterprisesUnit 6: Customs Procedures►