Kigali, October 6, 2026 — The Government of Rwanda has concluded discussions with the International Monetary Fund (IMF) on the first review of the Extended Credit Facility (ECF) arrangement, reaching a staff-level agreement. The agreement recognizes Rwanda's strong program performance and continued commitment to sound economic policies. Upon completion of the IMF Executive Board review in December, Rwanda will have access to approximately US$35.7 million.

Rwanda met all measurable economic targets set for the end of June 2026, reflecting disciplined management of public finances and monetary policy. Reforms to strengthen the investment framework and deepen the domestic securities and foreign exchange markets are underway. The budget deficit fell to 4.8 percent of GDP in fiscal year 2025/26, supported by strong tax collections and responsible spending. The economy grew by 9.7 percent in the first half of 2026, driven by strong remittances and a narrowing current account deficit. Foreign exchange reserves remain comfortable at about four months of imports, and the Rwandan Franc's depreciation has slowed.

Inflation reached 15.7 percent in August 2026, above the central bank's 5 percent medium-term target, reflecting pre-existing price pressures and higher international oil and fertilizer prices, including spillovers from the war in the Middle East. The National Bank of Rwanda has tightened monetary policy in response.

Moving forward government will prioritize fiscal consolidation to preserve Rwanda's moderate risk of debt distress and rebuild policy buffers. This will be supported by domestic revenue mobilization through the second Medium-Term Revenue Strategy (MTRS-2), careful spending prioritization while protecting social spending, better public investment management, and closer monitoring of fiscal risks.

Economic growth is projected at 7.8 percent in 2026 and 7.2 percent in 2027. The government acknowledges downside risks, including global commodity price volatility, trade and geopolitical tensions, potential El Niño-related weather shocks, and tighter global financing conditions. On the upside, the new petroleum procurement framework led by the Rwanda National Energy Company (RNEC) is expected to improve fuel supply security and make procurement costs more competitive.

Minister of Finance and Economic Planning, Yusuf Murangwa, said: "We are pleased with the progress on the ECF program, which will cushion the impact of the Gulf war and declining budget support while sustaining Rwanda's growth, investment ambitions and structural transformation. The Government remains committed to implementing the reforms under this program to protect Rwandans from external shocks while building a stronger, more self-reliant economy."

The IMF Mission Chief for Rwanda, Mr. Albert Touna Mama, commended the authorities' cooperation, noting that program implementation has been satisfactory. The government appreciates the IMF's continued support for Rwanda's efforts to preserve macroeconomic stability, reduce inflation, and advance priority reforms.