IMF to provide $250m to Rwanda in new reform program

The International Monetary Fund announced on Thursday that it had reached an agreement with the Rwandan government to implement a new $250 million program over 38 months to support economic reforms.

The Extended Credit Facility program must still be approved by the IMF’s board, which is expected to discuss the matter in June.

“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,” said Touna Mama, IMF mission chief for Rwanda, in a statement.

It will work on three main areas: macroeconomic policy, managing fiscal and debt risks to growth and promoting the country’s private sector, the statement said.

Rwanda saw strong growth of 9.4 per cent in 2025, but the Fund expects that number to slip to 6.8 per cent this year as the war in the Middle East “weighs on Rwanda’s economic outlook.”

Alongside last year’s growth, the country was also battling high inflation, which came in at 9.2 per cent year-on-year.

The United States and Israel launched the war against Iran on February 28, sparking a conflict that has engulfed the region, snarled supply chains and sent energy prices skyrocketing.

Earlier this week, the IMF warned that the war could have serious ramifications for low-income countries, particularly in Asia and Africa.

AFP