The International Monetary Fund has approved a new $250 million Extended Credit Facility for Rwanda aimed at helping the country maintain economic growth while protecting development and social spending. The 38-month program comes as Rwanda faces growing external pressures, including risks linked to the conflict in the Middle East. Although Rwanda’s economy expanded by a stronger-than-expected 9.4% in 2025, the IMF warned that higher global oil and fertilizer prices could increase inflation, weaken external balances, and create fiscal challenges. Economic growth is now projected to slow to below 6.8% in 2026. The IMF flagged risks to Rwanda’s external balance and debt sustainability and urged the government to broaden its revenue base, strengthen public investment management, and improve oversight of capital expenditure. The facility is designed to provide financial support while helping Rwanda navigate a more uncertain global economic environment.
Africanews
