IMF approves USD164.6M in funding for Rwanda to address repercussions of 2023 flooding

5/23/2024 4:39:20 AM

(MENAFN) On Wednesday, the International Monetary Fund (IMF) announced its approval of USD164.6 million in funding for Rwanda, as the East African nation endeavors to address the repercussions of last year's devastating flooding.

Of this financial support, approximately USD76.2 million will be allocated through the Resilience and Sustainability Facility (RSF), while the remaining USD88.4 million will be accessible through the Standby Credit Facility (SCF) arrangement.

This funding injection underscores the IMF's commitment to assisting Rwanda in its efforts to enhance resilience and sustainability in the face of environmental challenges, thereby aiding the country's recovery and development endeavors.

“Despite challenging external conditions and ongoing fiscal consolidation, Rwanda's economy maintains robust growth. Going forward, the policy mix should prioritize macroeconomic and financial stability, fiscal sustainability, and the restoration of buffers,” the Fund declared.

The IMF highlighted that sustaining the robust reform momentum facilitated by the Resilience and Sustainability Facility (RSF) will play a crucial role in reinforcing Rwanda's economic resilience against potential climate shocks in the future.

Furthermore, the IMF noted that Rwanda exceeded expectations in terms of real GDP growth in 2023, achieving a notable rate of 8.2 percent. This impressive growth was attributed to significant contributions from sectors such as services, construction, and the post-flood recovery efforts in food crop production.

In response to the IMF's support and collaboration, Rwandan Finance Minister Uzziel Ndagijimana reaffirmed the government's commitment to working closely with the Fund. He emphasized the importance of maintaining prudent economic management practices and expressed gratitude for the ongoing partnership with the IMF in ensuring the effective stewardship of Rwanda's economy.

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