The International Monetary Fund (IMF) has approved a concessional loan of $250 million for Rwanda to help the country address economic challenges linked to the ongoing conflict in the Middle East.
The funding will be disbursed over 38 months, equivalent to about three years. The loan is expected to receive final approval during the IMF Executive Board meeting scheduled for June this year.
Rwanda’s Minister of Finance and Economic Planning, Yussuf Murangwa, said the funds will help the country mitigate potential economic disruptions caused by the conflict.
He explained that the war in Arab countries could affect key imports such as fertilizers, which Rwanda largely sources from the region.
“These funds will help us address economic challenges that may arise from the conflict in Arab countries. One of the major concerns is fertilizer availability, which may become limited and more expensive since much of it comes from those countries,” Murangwa said.
He added that the government is exploring ways to support farmers by ensuring fertilizers remain accessible and affordable.
“If the government does not intervene, fertilizer prices could increase significantly, which would create serious challenges for farmers. Part of these funds, along with government resources, will help stabilize prices and ensure farmers can still access fertilizers,” he said.
According to the International Monetary Fund, Rwanda’s economy remains resilient, recording growth of 9.4% in 2025—higher than previously projected.
However, inflation has also risen, reaching 9.2% in February this year.
The IMF noted that Rwanda’s external trade remains relatively strong, driven by exports such as tea, coffee, and minerals. Nevertheless, imports remain high, particularly machinery and other goods needed for domestic industries and businesses.
The IMF also expressed concern about the depreciation of the Rwandan franc, which reached 9.2% in February compared to the same period last year, exceeding the target set by the National Bank of Rwanda.
Responding to the issue, the Governor of the National Bank of Rwanda, Soraya Hakuziyaremye, said discussions are underway between the central bank and the government to implement measures aimed at stabilizing the currency.
She noted that monetary policy alone may not be sufficient to bring currency depreciation back to the long-term target of 5%.
“Monetary policy alone may not be enough to reduce currency depreciation to the long-term target of 5%. The government may need to take additional measures, similar to those implemented in 2022/23 when the depreciation rate was high,” she said.
Hakuziyaremye added that the central bank is closely monitoring global fuel and gas prices and will work with the government to determine appropriate measures depending on how the situation evolves.