Tuesday 12, June 2018 by Matthew Amlôt

IMF Executive Board completes ninth PSI Review for Rwanda


The PSI for Rwanda was approved on 2 December 2013, and extended on 12 January 2018, to 1 December 2018

The Executive Board of the International Monetary Fund (IMF) today completed the ninth review of Rwanda’s performance under the Policy Support Instrument (PSI).

The PSI for Rwanda was approved on 2 December 2013, and extended on 12 January 2018, to 1 December 2018.

Rwanda’s strong implementation of its macroeconomic programme has helped it weather external shocks and maintain macroeconomic stability. With deliberate adjustment policies underpinned by exchange rate flexibility, combined with structural reforms to bolster domestic production, Rwanda’s external position has improved markedly while maintaining comfortable rates of growth. Budget execution remains in line with expectations, while monetary policy continues to focus on low and stable prices. Performance under the PSI-supported programme remains very satisfactory.

Growth rebound in 2017 was stronger than expected while inflation was contained. Growth was robust in most areas, except construction, with pronounced pick-ups in non-traditional exports and services. Consumer price inflation remained very low, with ample food supplies and as the exchange rate has reached equilibrium values. Over the medium term, investment in public infrastructure and interventions to promote structural transformation and diversified exports, underpinned by strong domestic revenue mobilisation efforts and PFM reforms, should sustain growth in line with or above historical averages over the medium term.  Inflation is expected to remain around the authorities’ targeted five per cent over the medium-term.

Looking forward, the authorities’ “Vision 2050” to reach middle income status by 2035 will require continued reform efforts to create higher value added economic activity, with the private sector serving as the main engine of growth.  In addition, renewed momentum in domestic revenue mobilisation will be necessary to support development spending.  The Vision will be effected through a series of seven-year National Strategies for Transformation (NST), underpinned by detailed sectoral strategies that are aimed toward achievement of the SDGs.


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