IMF authorized immediate disbursement of $35.7M for Rwanda

The International Monetary Fund (IMF) has authorized an immediate disbursement of $35.7 million to Rwanda under its Resilience and Sustainability Facility (RSF) and Stand-by Credit Facility (SCF) arrangements. This follows the completion of the 2023 Article IV consultation and the second review of Rwanda's PCI. The disbursement includes $49.49 million under the RSF and $89.35 million under the SCF, reflecting support for Rwanda's macroeconomic stability.

Rwanda's economy has shown resilience despite challenges such as droughts, floods, and global geopolitical tensions. Growth is projected to moderate from 8.2 percent in 2022 to 6.2 percent in 2023 and 6.6 percent in 2024, as fiscal consolidation and tight monetary policies take effect. Public debt is expected to rise to 78 percent of GDP in 2024 before gradually declining to 69.5 percent by 2028. Inflation, which peaked at 14.5 percent in 2023, is projected to decline to 5 percent by 2025 and remain stable thereafter.

The IMF has praised Rwanda's commitment to climate-related reforms, including the implementation of an internationally recognized green taxonomy. These efforts are part of a broader strategy to enhance resilience to climate-induced shocks and promote sustainable development. The new SCF arrangement will focus on recalibrating the near-term policy mix to rebuild external buffers and curb inflation.

The disbursement underscores the IMF's ongoing support for Rwanda's economic and financial program, which includes strengthening public financial management, promoting private-sector-led growth, and maintaining macroeconomic stability in a challenging global environment.