Rwanda Unlocks Access to $250 million IMF Loan
Rwanda has unlocked access to a $250 million loan from the International Monetary Fund (IMF) following a staff-level agreement reached with the authority on a 38-month Extended Credit Facility (ECF) arrangement of SDR 185.031 million.
The extended credit facility, equivalent to US$ 250 million, is intended to support Rwanda’s economic policies and reforms, subject to approval by the IMF’s management and Executive Board.
The ECF arrangement aims to support sound macroeconomic adjustment, rebuild policy buffers, and sustain reform momentum through three pillars: strengthening the macroeconomic policy mix, managing fiscal and debt risks to sustain growth, and promoting private sector-led growth with transparent fiscal oversight of state-owned enterprises.
Despite recurrent shocks, Rwanda’s economy remains resilient, with 2025 GDP growth surpassing initial forecasts. However, risks from a prolonged war in the Middle East and tighter concessional financing could weigh on growth, inflation, external balance and debt. Recent tax reforms are nevertheless strengthening domestic revenue and debt servicing capacity.
At the conclusion of the mission, Mr. Touna Mama, IMF Mission Chief for Rwanda, said: “We are pleased to announce that the Rwandan authorities and the IMF have reached a staff-level agreement on the economic policies and reforms to be supported by a 38-month Extended Credit Facility (ECF) arrangement of SDR 185.031 million (equivalent to US$250 million).
The agreement is subject to approval by the IMF management and its Executive Board. The ECF arrangement aims to sustain reform momentum, support sound macroeconomic adjustment, and rebuild policy buffers, while effectively managing the impacts of the war in the Middle East.
The program will be anchored around three key pillars: strengthening a coherent macroeconomic policy mix, managing fiscal and debt risks to sustain growth, and promoting private-sector-led growth with transparent fiscal oversight of state-owned enterprises.
“Rwanda’s economy is performing strongly, with growth reaching 9.4 percent in 2025—much higher than expected. Inflation increased in early 2026, rising to 9.2 percent year-on-year in February 2026 and surpassing the central bank’s target range.
The country’s external position improved last year, helped by strong exports of coffee and minerals. Imports also remained high, especially equipment and materials needed for local businesses. Foreign exchange reserves stayed at a comfortable level, covering just over four months of imports.
“The war in the Middle East weighs on Rwanda’s economic outlook, with growth expected to moderate to 6.8 percent in 2026. Inflation, fiscal and current account pressures persist due to higher international oil and fertilizer prices driven by the war, and financing of large strategic investments.
“While volatility in global commodity prices, subdued global demand, escalating trade and geopolitical tensions, and tighter global financing conditions weigh on the outlook, sound macroeconomic adjustments, the authorities’ ability to attract private investments, and supportive trade flows provide upside potential.
“Recurrent and overlapping shocks, alongside financing needs for priority projects and a structural reduction in concessional budget support, have challenged authorities’ efforts to sustainably rebuild fiscal and external buffers.
“While last year’s tax package is supporting domestic revenue mobilization and the ongoing fiscal adjustment, borrowing for strategic projects will increase public debt and debt service obligations.
“Reforms under the new ECF-supported program aim to support durable private sector led growth, preserve macroeconomic stability, address external imbalances, and rebuild policy buffers in a challenging global environment.
“A credible medium term fiscal strategy—including adoption of the MTRS 2, stronger control over foreign financed capital spending, enhanced fiscal risk management (notably from SOEs), and expenditure prioritization while protecting social and priority spending—would help safeguard debt sustainability.
“In light of recent inflationary pressures, the monetary policy stance should remain appropriately tight to steer inflation towards NBR’s medium-term target of five percent.
“Monetary policy should continue to be proactive, data-driven, and forward-looking, supported by clear communication, to prevent the de-anchoring of inflation expectations.
“Greater exchange rate flexibility, supported by enhanced price discovery through regular price-based auctions, should also enhance the role of the exchange rate as a key shock absorber and help rebuild international reserves.
“The staff team appreciates the authorities’ excellent cooperation and candid discussions. The IMF is committed to continue supporting the country in strengthening its policy foundations and advancing its reform and development agenda.” MTN Nigeria Lost N1.02trn over Large Scale Selloffs
