IMF Staff Country Reports

This paper discusses IMF’s Fourth Review under the Policy Coordination Instrument (PCI), Second and Final Review under the Stand-By Credit Facility (SCF) Arrangement, Fourth and Final Review under the Arrangement under the Resilience and Sustainability Facility (RSF) for Rwanda. Despite a challenging external environment, Rwanda's economy has maintained robust growth, driven by strong performance of the services and construction sectors, and a recovery in food crop production. Notwithstanding the challenging policy environment, Rwanda’s economic growth continues to be among the strongest in the Sub-Saharan African region, but fiscal and external vulnerabilities remain high. In order to facilitate adjustment and rebuild policy buffers fiscal consolidation needs to accelerate, with a stronger focus on domestic revenue mobilization. Program performance under the PCI/SCF has been strong, with successful reforms enhancing public investment transparency and foreign exchange market functioning. The RSF has been successfully completed ahead of schedule, with all reform measures implemented six months early. Rwanda continues to lead in climate initiatives, driving institutional reforms, and innovative climate finance mobilization.