KIGALI, June 9 – The International Monetary Fund (IMF) has approved a new $250 million Extended Credit Facility (ECF) for Rwanda, providing fresh financial support to help the country navigate tighter global financial conditions while protecting critical social and development spending.
The 38-month programme was approved by the IMF Executive Board and includes an immediate disbursement of approximately $35.7 million.
According to the IMF, the financing arrangement is designed to support Rwanda’s macroeconomic stability, strengthen resilience against external shocks and sustain reforms aimed at promoting long-term economic growth.
Rwanda recorded stronger-than-expected economic performance in 2025, with growth reaching 9.4%, significantly exceeding earlier projections.
However, the IMF expects economic expansion to moderate in 2026 as global uncertainties weigh on activity.
The Fund projects growth could slow to below 6.8% next year as rising global energy and commodity prices create new challenges for the economy.
Higher oil and fertilizer prices have increased inflationary pressures while placing additional strain on public finances and external balances.
Bo Li said risks to Rwanda’s economic outlook remain tilted to the downside and emphasized the importance of maintaining prudent fiscal management.
The IMF urged authorities to continue efforts aimed at fiscal consolidation, broaden domestic revenue sources and strengthen oversight of public spending and fiscal risks.
According to the Fund, maintaining disciplined public finances will be essential to preserving macroeconomic stability while supporting growth-enhancing investments.
The institution also advised that any government measures designed to cushion households and businesses from higher energy and commodity prices should remain temporary, targeted and aligned with Rwanda’s broader fiscal framework.
The new financing programme comes as Rwanda continues to invest heavily in infrastructure, social services and economic transformation initiatives.
The IMF noted that the facility will help safeguard spending on key development priorities while providing additional policy support during a period of heightened global uncertainty.
Rwanda has consistently been among Africa’s fastest-growing economies over the past decade, supported by investment, reforms and a growing services sector.
The new programme is expected to provide a financial buffer as policymakers work to balance economic growth, inflation control and fiscal sustainability amid evolving global conditions.
While Rwanda’s medium-term economic prospects remain relatively strong compared to many peers, the IMF warned that external risks, including volatile commodity markets, geopolitical tensions and tighter global financial conditions, could affect future performance.
The Fund said continued reforms, stronger domestic revenue mobilisation and careful management of public finances will be critical to maintaining growth momentum and strengthening economic resilience over the coming years.
