The Executive Board of the International Monetary Fund has approved a 38-month arrangement under the Extended Credit Facility for Rwanda, with access of SDR 185.031 million equivalent to 115.5 percent of the country’s quota alongside an immediate disbursement of SDR 26.433 million, approximately US$35.7 million.
The facility is designed to help Rwanda adapt to tighter global financing conditions while sustaining growth, protecting priority social and development spending, and rebuilding policy buffers.
Rwanda’s economy has maintained a strong performance, with growth reaching 9.4 percent in 2025 well above initial projections. However, inflation has emerged as a growing concern, surpassing the central bank’s target range and climbing to 13.2 percent year-on-year in April 2026.
On the external front, the country’s position improved last year, supported by strong exports of coffee and minerals, though imports remained elevated driven largely by equipment and materials needed for local businesses. Foreign exchange reserves held steady, covering just over four months of imports.
Despite the strong outturn, Rwanda’s near-term economic outlook is clouded by the ongoing conflict in the Middle East. Growth is expected to moderate to below 6.8 percent in 2026, with higher international oil and fertilizer prices driven by the war hence adding to fiscal, inflationary, and current account pressures.
The ECF-supported program by the IMF will be anchored around three key pillars which is strengthening a coherent macroeconomic policy mix, managing fiscal and debt risks to sustain growth, and promoting private-sector-led growth with transparent fiscal oversight of state-owned enterprises.
Speaking after the Executive Board’s discussion, IMF Deputy Managing Director and Acting Chair, Mr. Bo Li, stressed the need for a credible medium-term consolidation path, anchored around stronger revenue mobilization, improved public investment management, and enhanced monitoring of capital spending.
“A credible medium-term fiscal consolidation path will be pivotal to reducing external imbalances and safeguarding Rwanda’s moderate risk of debt distress, while safeguarding social objectives,” he said.
He also called for tighter monetary policy to rein in inflation, noting that rapid credit growth and concentrated exposures warranted close monitoring, even as the financial sector remained stable.
“An appropriately tight and forward-looking monetary policy will help address elevated inflationary pressures. Strengthening policy communication and reinforcing the credibility of the inflation target will be essential to better anchor inflation expectations,” Mr. Li added.
On structural reforms, he urged Rwanda to push ahead with improving public investment efficiency, strengthening institutional frameworks, and accelerating state-owned enterprise reforms to contain fiscal risks and foster a more dynamic economic environment.
“The ECF-supported program, underpinned by the authorities’ strong policy commitment and continued engagement with development partners, provides an appropriate policy anchor to support orderly adjustment, sustain reform momentum, and catalyze more financing,” he concluded.
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