May 17, 2025 

S&P Global has reaffirmed Rwanda’s credit rating at B+ with a stable outlook following its assessment released yesterday. The decision reflects Rwanda’s continued robust economic growth, ongoing government reforms to increase domestic revenue, and prudent debt management.

The stable outlook takes into account Rwanda’s vulnerabilities, such as balance-of-payments challenges, regional security concerns, and rising fiscal deficits. However, the country’s access to affordable, concessional funding and its favorable debt structure—characterized by extended repayment periods—help mitigate some risks. According to S&P, Rwanda’s debt servicing costs are notably lower than those of similar-rated countries, with interest expenses projected to average about 10% of government revenue from 2025 to 2028.

Looking ahead, S&P Global expects Rwanda’s economy to outperform many of its peers over the next five years. This positive outlook is driven by significant public investments in infrastructure, including the new Kigali International Airport, the expansion of the airline , as well as projects in key sectors like agriculture, energy, health, education and Tourism. In 2024, Rwanda’s economy grew by 8.9%, with an 8% increase in the fourth quarter. 

While agricultural growth was slow in 2023 and moderately improved in 2024, favorable weather conditions are anticipated to boost production. The services sector’s sustained expansion is also expected to attract more private sector activity.

Despite these positive signs, S&P recognizes Rwanda’s vulnerability to climate change, weather-related disruptions, and regional security tensions. The agency also notes the country’s efforts to boost revenues through measures like tax rate increases, digitalizing the tax system, and broadening the tax base. These reforms are expected to help improve Rwanda’s fiscal position and reduce deficits in the medium term.

S&P’s reaffirmation reflects confidence in Rwanda’s proactive economic policies, strong growth prospects, and resilience amid challenges.