Rwanda is set to receive US$ 95.9 million under the Resilience Sustainability Facility (RSF) and US$ 89.0 million under the Standby Credit Facility (SCF) following the completion of an IMF review by mid-December. These funds will bolster the country’s ongoing economic reforms and efforts to build resilience amid external challenges.
Despite shocks in recent years, Rwanda’s economic growth remains on track, with the International Monetary Fund (IMF) projecting an 8.3% increase in real GDP for 2024. This growth is driven by the services and construction sectors, alongside a recovery in food crop production. Inflation has also remained stable due to tight monetary policies and favorable food prices, while international reserves stood at 4.5 months of prospective imports by mid-2024.
The IMF team, led by Mr. Reuben Atoyan, highlighted that Rwanda’s macroeconomic performance through June 2024 aligned with the objectives of the country’s Policy Coordination Instrument (PCI) and SCF arrangement. All quantitative targets were met, and reforms to enhance transparency in public investments and improve the functioning of the foreign exchange market are progressing well.
The government is also advancing climate-related reforms under the RSF, with measures such as climate budget tagging, improving the resilience of public investments, and developing sustainability disclosure standards on track. The IMF praised these efforts, noting the government’s commitment to developing a green taxonomy to further strengthen climate action.
However, the IMF acknowledged that recent global shocks have complicated Rwanda’s efforts to rebuild fiscal buffers, with fiscal consolidation progressing slower than expected. As a result, the public debt-to-GDP ratio has continued to rise. The government has reaffirmed its commitment to prudent financing, focusing on concessional loans and advancing a medium-term revenue strategy while strengthening oversight of state-owned enterprises and improving corporate governance.
Rwanda’s resilience and reform agenda remain central to its growth strategy, and the upcoming IMF funds will support these efforts amid ongoing global uncertainties.