The IMF has called for continued fiscal consolidation in Rwanda, saying stronger domestic revenue collection and tighter control of public investment will be important to keep debt risks contained.
The call followed a staff-level agreement between the IMF and Rwandan authorities on the first review of the country’s Extended Credit Facility programme. Completion of the review, which remains subject to approval by IMF management and the Executive Board, would give Rwanda access to about $35.7 million.
The Fund said Rwanda’s fiscal performance had been robust, with the deficit narrowing to 4.8% in the 2025/26 financial year. Strong tax collection and the full pass-through of higher international prices to pump prices helped limit the cost of fuel subsidies.
But the IMF said Rwanda would need to maintain fiscal consolidation to preserve a moderate risk of debt distress and rebuild financial buffers.
It recommended stronger domestic revenue mobilisation, including through the expected second Medium-Term Revenue Strategy, known as MRTS-2. The Fund also urged authorities to carefully prioritise foreign-financed capital projects while protecting social programmes and other priority spending.
Better management of public investment and closer monitoring of fiscal risks were also identified as important to the effort.
The assessment comes as the economy continues to expand strongly. IMF staff said growth reached 9.7% in the first half of 2026, while NISR reported 9.4% year-on-year growth in the second quarter.
Inflation remains a significant pressure point. Consumer prices rose 15.7% year-on-year in August, according to NISR, up from 14.5% in July.
The IMF said all end-June quantitative performance criteria under the programme were met, while structural reforms were advancing. These include measures to strengthen the investment framework and deepen domestic securities and foreign exchange markets.
The Fund expects growth of 7.8% this year and 7% in 2027, but warned that commodity-price volatility, geopolitical tensions, climate shocks and tighter global financing conditions could affect the outlook.
It also said a new petroleum procurement framework led by Rwanda National Energy Company could improve fuel supply security and reduce procurement costs.
