Rwanda and International Monetary Fund staff agreed on the policies and reforms required to complete the first review of the country’s Extended Credit Facility programme.
If the agreement is approved by IMF management and its Executive Board, Rwanda will gain access to about $35.7 million.
The review examined the country’s performance under a 38-month economic programme approved by the IMF Executive Board in June.
IMF staff found that Rwanda had met all quantitative performance targets set for the end of June. The government was also advancing reforms to improve the investment framework and deepen the domestic securities and foreign exchange markets.
“Rwanda’s economy remained resilient despite recent shocks, growing by 9.7 percent in the first half of 2026,” the IMF said.
Strong export earnings and remittance inflows helped reduce the current account deficit. Foreign exchange reserves remained sufficient to cover about four months of imports, while the depreciation of the Rwandan franc slowed.
The review, however, raised concern over rising prices. Headline inflation reached 15.7 percent in August, compared with the National Bank of Rwanda’s medium-term target of five percent.
The IMF attributed the increase to existing price pressures and higher international oil and fertiliser costs. It said monetary policy should remain tight and guided by economic data to prevent the increases from spreading more widely and to return inflation towards the central bank’s target.
Rwanda’s fiscal deficit declined to 4.8 percent of gross domestic product in the 2025/26 financial year. The improvement was supported by stronger tax collection and the government’s decision to reflect higher international oil prices in domestic pump prices, limiting fuel subsidies.
The Fund said further fiscal consolidation would be required to keep Rwanda’s risk of debt distress at a moderate level and rebuild financial buffers.
It called for stronger domestic revenue collection, careful selection of externally financed investment projects and continued protection of social and other priority spending.
The IMF also recommended better management of public investments and closer monitoring of financial risks linked to state-owned enterprises.
The Extended Credit Facility was approved with total access of approximately $250 million. It was designed to help Rwanda adjust to tighter international financing conditions while maintaining economic growth and protecting priority development spending.
The IMF authorised an initial disbursement of about $35.7 million when the programme was approved. Another $35.7 million will become available if the first review is completed.
The programme centres on strengthening Rwanda’s economic policy framework, managing fiscal and debt risks and supporting private sector-led growth. It also seeks to improve financial oversight of state-owned enterprises.
The IMF projected Rwanda’s economy to grow by 7.8 percent in 2026 and seven percent in 2027.
It identified volatile commodity prices, geopolitical and trade tensions, climate shocks and tighter global financing conditions as risks to the outlook.
Rwanda’s new petroleum procurement system could improve fuel-supply security and reduce procurement costs, according to the Fund.
The IMF Executive Board is expected to consider the review in December. Its decision will determine whether Rwanda receives the additional $35.7 million.
Elie GATETE
RADIOTV10