The International Monetary Fund (IMF) has approved additional funding for Rwanda, with $95.9 million under the Resilience and Sustainability Facility (RSF) and $89 million via the Standby Credit Facility (SCF).
This funding comes after a review of Rwanda’s performance and implementation of these programmes, aimed at addressing climate challenges and short-term balance of payment needs. The IMF team also assessed progress on Rwanda’s Policy Coordination Instrument (PCI), commending the country’s resilience despite external economic pressures.
Rwanda’s economic outlook remains positive, with the IMF projecting an 8.3% GDP growth in 2024. This growth is driven by robust performances in services and construction, alongside a recovery in food crop production. In the first half of the year, Rwanda recorded economic growth of 9.7% and 9.8% in the first and second quarters, respectively. Inflation has also been maintained within the central bank’s target range of 2% to 8%, owing to tight monetary policy and favourable food prices.
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However, fiscal consolidation has lagged behind expectations, leading to an increased public debt-to-GDP ratio. To manage this, Rwanda is focusing on mobilising concessional loans and borrowing strategically to maintain sustainable debt levels. The country’s international reserves, covering 4.5 months of imports as of mid-2024, provide a buffer against potential external shocks, highlighting the country’s sound economic management.
The IMF commended Rwanda’s progress under the RSF arrangement, particularly in implementing climate-related reforms such as climate budget tagging and developing sustainability disclosure standards. The completion of a green taxonomy is expected soon, further strengthening Rwanda’s climate resilience initiatives.
