Rwanda is on course to secure $262 million (Ksh 39.3b) from the International Monetary Fund to help mitigate its balance of payment pressures arising from climate-related shocks, the lender has sad.
IMF has noted that the East African Community member state despite registering a strong post-pandemic growth has faced domestic and external imbalances coupled with persistent droughts, severe floods early this year and tightening global financing conditions.
“Rwanda withstood overlapping recent shocks well, but external and domestic imbalances have intensified. Economic growth remained robust at 6.3 percent in the second quarter of 2023, notwithstanding repeated droughts and the severe floods in May 2023. Headline inflation decelerated in the first semester, but inflationary pressures resurfaced in August 2023 due to increased food prices,” said Ruben Atoyan, IMF team lead during a visit to Kigali.
The 14-month Stand-by Credit Facility is will however be subject to IMF board review which is slated for December this year.