Rwanda has reached a staff-level agreement with the International Monetary Fund (IMF) for a 38-month loan program worth SDR 185 million (approximately U$250 million), aimed at bolstering the country’s economic resilience and advancing key reforms.
The agreement now awaits final approval from IMF management and its Executive Board, expected in June 2026.
The Extended Credit Facility (ECF) program will support Rwanda in maintaining reform momentum, managing fiscal and debt risks, and promoting private-sector-led growth while ensuring transparent oversight of state-owned enterprises.
Yusuf Murangwa, Rwanda’s Minister of Finance and Economic Planning, emphasized the importance of the agreement:
“We are pleased with the progress on the ECF program, which will cushion the impact of the Gulf war and declining budget support while sustaining Rwanda’s growth, investment ambitions and structural transformation.”
Rwanda’s economy demonstrated remarkable resilience in 2025, growing 9.4%, driven by strong exports of coffee and minerals.
Inflation rose to 9.2% in February 2026, and foreign exchange reserves remain robust, covering over four months of imports.
Recent tax reforms have further strengthened domestic revenue collection.
Albert Touna Mama, IMF mission chief, highlighted both the strengths and challenges facing Rwanda:
“Rwanda’s economy remains resilient with strong 2025 growth, but prolonged war in the Middle East and tighter financing could pressure inflation, external balance, and debt.”
The ECF program is designed to help Rwanda navigate these challenges by supporting durable private-sector-led growth, maintaining economic stability, and rebuilding policy buffers.
Key measures include a credible medium-term budget plan, tighter control of foreign-funded capital spending, proactive monetary policy to reduce inflation to the 5% target, and greater exchange rate flexibility.
Minister Murangwa reinforced the government’s commitment:
“The Government remains committed to implementing the reforms under this program to protect Rwandans from external shocks while building a stronger, more self-reliant economy.”
With this program, Rwanda aims to sustain growth at an expected 6.8% in 2026, manage inflation and debt pressures, and continue attracting private investment, even amid global uncertainties such as volatile commodity prices and geopolitical tensions.
The agreement marks a significant step toward economic stability, financial resilience, and long-term growth for Rwanda, reinforcing its commitment to sound policy and reform-driven development.
By Andrew shyaka
