International Monetary Fund (IMF) Reaches Staff-Level Agreement On The First Review Under The Extended Credit Facility Arrangement For Rwanda

(MENAFN- APO Group)

• IMF staff and the Rwandan authorities have reached a staff-level agreement on policies and reforms needed to complete the first review of Rwanda's Extended Credit Facility (ECF) arrangement. Upon completion of the review by the IMF Executive Board, Rwanda will have access to approximately US$35.7million.
• The staff-level agreement reflects strong program performance under the ECF-supported program and the authorities' continued commitment to prudent policies that safeguard macroeconomic stability and debt sustainability while advancing the development agenda.
• Rwanda's economy has remained resilient despite recent shocks, with growth reaching 9.7 percent in the first half of 2026, while inflationary pressures have intensified with headline inflation reaching 15.7 percent in August amid pre-existing pressures and spillovers from the war in the Middle East. The tighter monetary policy response will need to remain focused on returning inflation toward the central bank's target.

From September 23 to October 6, 2026, an International Monetary Fund (IMF) staff team led by Mr. Albert Touna Mama held discussions with the Rwandan authorities on the first review of the Extended Credit Facility (ECF) arrangement. The IMF Executive Board is expected to consider the review in December 2026.

At the conclusion of the mission, Mr. Touna Mama, IMF Mission Chief for Rwanda, issued the following statement:

“The Rwandan authorities and IMF staff have reached a staff-level agreement on the economic policies and reforms needed to complete the first review of the Extended Credit Facility (ECF) arrangement. The agreement is subject to approval by IMF Management and the IMF Executive Board. Subject to that approval, completion of the review would give Rwanda access to SDR 26.433 million, equivalent to about US$35.7million, under the ECF-supported arrangement.

“Rwanda's economy remained resilient despite recent shocks, growing by 9.7 percent in the first half of 2026. Strong export and remittance inflows contributed to narrowing the current account deficit. Foreign exchange reserves remained at a comfortable level, covering about four months of imports, and the depreciation of the Rwandan Franc moderated. Inflation, however, reached 15.7 percent in August. It remained above the central bank's medium-term target of 5 percent, reflecting pre-existing price pressures and higher international oil and fertilizer prices.

“Program implementation has been satisfactory. All end-June quantitative performance criteria were met. The authorities are advancing all structural benchmarks, including reforms to strengthen the investment framework and deepen both the domestic securities market and the foreign exchange market. Because inflation exceeded the program's consultation band, the Monetary Policy Consultation Clause will be discussed at the IMF Executive Board.

“Fiscal performance has been robust with a deficit falling to 4.8 percent in fiscal year 2025/26. Tax collections were strong, while the full pass-through of higher international prices to pump prices limited fuel subsidies. Looking ahead, sustained fiscal consolidation will be critical to preserve a moderate risk of debt distress and rebuild policy buffers. The effort should be supported by stronger domestic revenue mobilization-spearheaded by the expected second Medium-Term Revenue Strategy (MRTS-2)-and careful prioritization of foreign-financed capital expenditure, while protecting social and other priority spending. Better public investment management and closer monitoring of fiscal risks will reinforce these efforts.

“Economic performance is expected to remain strong. Real GDP growth is projected at 7.8 percent in 2026 and 7.0 percent in 2027. Downside risks include continued volatility in global commodity prices, heightened trade and geopolitical tensions, climate shock related to El Niño, and tighter global financing conditions. On the upside, the new petroleum procurement framework led by the Rwanda National Energy Company (RNEC) could improve fuel supply security and make fuel procurement costs more competitive.

“With inflation still elevated, the National Bank of Rwanda (NBR) has tightened monetary policy. Going forward, an appropriately tight, data-driven monetary policy stance remains important to prevent those increases from spreading more broadly through the economy and to guide inflation toward the NBR's medium-term target of 5 percent.

“The staff team appreciates the authorities' cooperation and candid discussions. The IMF will continue to support Rwanda's efforts to preserve macroeconomic stability, reduce inflation, and advance priority reforms.”

Distributed by APO Group on behalf of International Monetary Fund (IMF).

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