September 12, 2023

Moody's, a global rating agency has upgraded Rwanda’s economic outlook to stable from negative. The rating agency assessment is underpinned by Rwanda’s effective institutions and credible policies that have and will continue to preserve and to anchor government's credit profile in response to shocks. Moody's expects government's commitment to fiscal consolidation and revenue enhancement to keep its debt burden on a stable to declining path.

 “We expect economic growth to remain strong and support debt sustainability, driven by large infrastructure investments and robust activity in the tourism sector. These factors help mitigate downside risks including from climate shocks that weigh on the country's agriculture output and are in part driving high inflation and contributing to a wider current account deficit,” A statement released by Moody’s on Friday September 8, 2023 read it part.

The rating agency also affirmed Rwanda's credit worthiness to B2, which means that, despite the ability to meet its financial obligations, Rwanda is still susceptible to risk.

Moody’s notes that the B2 rating affirmation reflects Rwanda's economy’s limits to shock absorption capacity, which are balanced against the economy's high growth potential, the country's relatively solid institutions and governance compared to peers, and continued strong development partner support that maintains Rwanda's access to external concessional financing.