Rwanda and the International Monetary Fund have reached a staff-level agreement on a new 38-month financing programme worth US$250 million to support the country’s economic reforms, fiscal adjustment and efforts to manage fresh external shocks, the Fund and Rwandan officials said on Thursday.
The agreement, reached under the IMF’s Extended Credit Facility (ECF), is subject to approval by the Fund’s management and executive board, which is expected to consider the programme in June, according to IMF Mission Chief for Rwanda Albert Touna Mama.
The new arrangement, valued at SDR 185.03 million, or about $250 million, is designed to help Rwanda sustain reform momentum, rebuild policy buffers and preserve macroeconomic stability at a time of heightened global uncertainty. The IMF said the programme would rest on three main pillars: strengthening the macroeconomic policy mix, managing fiscal and debt risks, and promoting private sector-led growth with more transparent oversight of state-owned enterprises.
RwandaThe programme also comes as Rwanda seeks to cushion the impact of higher global fuel and fertiliser prices, which officials say have been worsened by the conflict involving Iran and the broader volatility in energy markets.
Finance Minister Yusuf Murangwa said part of the funding would help the government respond to rising fertiliser and fuel costs, which could otherwise put fresh pressure on inflation and agricultural production.
“When it comes to fertiliser, if the government does not intervene, prices could rise sharply and that would be a serious problem,” Murangwa told a news conference, according to Reuters.
For Rwanda, where agriculture remains a major employer and food production is closely tied to fertiliser affordability, any sustained rise in input costs could quickly spill into food prices and rural incomes.
The new programme signals continued confidence from the IMF in Rwanda’s policy direction, even as the East African economy faces a more difficult global backdrop.
The IMF said Rwanda’s economy had remained resilient despite repeated external shocks and that growth in 2025 exceeded earlier forecasts. However, it warned that a prolonged conflict in the Middle East and tighter access to concessional financing could weigh on growth, inflation, the external balance and debt dynamics.
Rwanda has built a reputation in recent years for relatively strong economic management and reform discipline, and the finance ministry expects annual economic growth to remain above 7 percent through 2028.
That growth outlook has been supported by public investment, services, construction and a gradual recovery in domestic demand, although the country remains vulnerable to imported inflation and shifts in external financing conditions.
The latest IMF arrangement is therefore likely to provide both financing support and policy credibility at a time when many frontier and low-income economies are facing rising borrowing costs and shrinking fiscal room.
Extended Credit Facility programmes are typically designed for low-income countries facing protracted balance-of-payments challenges and are often tied to reforms aimed at restoring macroeconomic stability and supporting inclusive growth.
For Rwanda, the agreement offers an additional layer of external support as it navigates a more uncertain international environment while trying to protect domestic growth and shield key sectors such as agriculture from imported price shocks.
If approved in June, the new facility will become one of the country’s main policy anchors over the next three years, shaping fiscal and structural reforms while helping Kigali manage near-term external risks.
