The agreement is aimed at supporting economic reforms and cushioning the impact of global shocks, including the ongoing war in the Middle East.
An IMF mission led by Albert Touna Mama held discussions in Kigali from March 19 to April 2 on Rwanda’s request for the facility. The agreement is subject to approval by IMF management and the Executive Board, with a decision expected in June.
According to the IMF, Rwanda’s economy performed strongly in 2025, with growth estimated at 9.4%, far exceeding earlier expectations. The performance was supported by robust exports, particularly coffee and minerals, and sustained private investment. Foreign exchange reserves remained comfortable, covering just over four months of imports.
However, inflationary pressures have intensified. Consumer inflation rose to 9.2% year on year in February 2026, exceeding the central bank’s target range. The IMF noted that higher global oil and fertiliser prices linked to the Middle East conflict, along with financing needs for large strategic projects, are weighing on the outlook.
Growth is expected to moderate to 6.8% in 2026 as global uncertainty persists. While Rwanda’s external position improved last year, import demand for equipment and materials remains strong. At the same time, recurrent shocks, reduced concessional budget support and the need to finance priority investments have slowed efforts to rebuild fiscal and external buffers.
The IMF said the proposed programme would focus on three pillars: strengthening macroeconomic policy coordination, managing fiscal and debt risks and promoting private‑sector‑led growth with stronger oversight of state‑owned enterprises. Measures include adopting a credible medium‑term revenue strategy, tighter control of foreign‑financed capital spending and stronger fiscal risk management.
The Fund also urged the central bank to maintain a tight monetary policy stance to guide inflation towards its 5% medium‑term target. Greater exchange rate flexibility and improved foreign exchange market mechanisms were highlighted as key tools to absorb external shocks and rebuild reserves.
IMF staff praised Rwanda’s cooperation and reaffirmed their commitment to support the country’s reform agenda in a challenging global environment.
–IMF/ChannelAfrica–
