By David Himbara
The July 2021 International Monetary Fund (IMF) review of Rwanda does not contain any surprises. The COVID-19 pandemic continues to exert a large impact on Rwanda’s economy and social fabric, says the IMF. Economic growth will not return to its pre-pandemic levels until the end-2023 because the “downside risks to growth remain substantial.” The COVID-19 pandemic continues to exact a large economic and social toll on Rwanda, with “the number of people falling into poverty increasing” most of whom are women and children. Meanwhile, rising debt levels necessitate containing fiscal risks from State-owned enterprises, public-private partnerships and state-guaranteed loans. The IMF advises that containing financial sector vulnerabilities “will be key to safeguarding financial stability, aided by intensified monitoring of credit risk, prudent restructuring, and timely recognition of problem loans.”
