Rwanda Secures $250 Million Credit Facility from IMF
The International Monetary Fund (IMF) has reached a staff-level agreement with Rwanda on a 38-month Extended Credit Facility (ECF) arrangement worth SDR 185.031 million (approximately US$250 million), aimed at supporting the country’s economic reforms and stability.
The agreement, which is subject to approval by the IMF’s management and Executive Board, is expected to be considered in June 2026.
According to the IMF, the programme will focus on three key pillars: strengthening macroeconomic policy, managing fiscal and debt risks, and promoting private sector-led growth with improved oversight of state-owned enterprises.
IMF Mission Chief for Rwanda, Albert Touna Mama, said the facility would help sustain reform momentum and rebuild policy buffers amid global economic uncertainties.
“We are pleased to announce that the Rwandan authorities and the IMF have reached a staff-level agreement on the economic policies and reforms,” he said.
Despite facing multiple external shocks, Rwanda’s economy has remained resilient. The IMF reported that the country recorded strong economic growth of 9.4 per cent in 2025, exceeding earlier projections.
However, growth is expected to moderate to 6.8 per cent in 2026 due to global pressures, including the ongoing Middle East crisis.
Inflation has also risen, reaching 9.2 per cent year-on-year in February 2026, above the central bank’s target range, driven in part by higher global oil and fertiliser prices.
The IMF noted that Rwanda’s external position has improved, supported by strong exports of coffee and minerals, while foreign exchange reserves remain at comfortable levels, covering just over four months of imports.
However, the country continues to face fiscal and debt challenges due to financing needs for major development projects and reduced concessional funding.
The new ECF-supported programme aims to address these challenges by strengthening domestic revenue mobilisation, enhancing fiscal discipline, and ensuring sustainable debt management. It also seeks to encourage private sector investment and maintain macroeconomic stability.
The IMF further advised that monetary policy should remain tight and data-driven to curb inflation and maintain economic stability, while greater exchange rate flexibility could help absorb external shocks and rebuild reserves.
The Fund reaffirmed its commitment to supporting Rwanda’s reform agenda, noting that continued cooperation would be key to achieving long-term economic resilience and sustainable growth.
