By David Himbara
Rwanda is ready to host the African Union Summit. It recently hosted the World Economic Summit. From these events, one would think that Rwanda is economically healthy, as its ruler, Kagame likes to boast.
Below the surface, Kagame’s Rwanda is facing four major problems: 1) massive import bills; 2) shrinking exports; 3) depleted foreign reserves; 4) expanding debts. According to the IMF, the Rwanda regime is in a tight corner: “The growth outlook for 2016–17 has also become more uncertain.”
The IMF has recently stepped in to save the day. On June 8, 2016, the IMF approved an 18-month arrangement under “the Standby Credit Facility” for US$204 million.
As the IMF explains, part of the credit facility extended to Rwanda is aimed at “boosting reserves, with a first SDR 72.09 million disbursement (about US$102 million) available immediately.”
Let us watch closely how the regime stumbled from crisis to crisis.