Ratings agency Moody’s has revised Rwanda’s credit outlook from “negative” to “stable”, pointing to easing tensions with the Democratic Republic of the Congo (DRC).
The shift follows a June peace agreement between Rwanda and the DRC, brokered by the United States with backing from regional partners. The deal has lowered risks surrounding foreign exchange inflows, which had been a concern amid the prolonged conflict.
According to the U.S. State Department, both countries have also agreed on an outline for a regional economic integration framework. This plan includes cooperation in energy, infrastructure, mineral supply chains, national parks, and public health all areas that could boost regional stability and economic resilience.
Moody’s affirmed Rwanda’s long-term local and foreign currency rating at “B2”, noting that external financial assistance has remained strong and is expected to continue. Such support is vital for Rwanda, helping sustain growth and buffer against fiscal pressures.
The agency further highlighted Rwanda’s robust economic growth, sustainable debt setup, and strong partnerships with development organizations. It also praised Rwanda’s institutional strength, saying its governance framework is stronger than many of its peers, adding resilience to the country’s credit profile.
While Rwanda still faces challenges such as security risks and dependence on aid, the outlook upgrade signals confidence in its ability to maintain financial stability. For investors, it reinforces Rwanda’s reputation as one of the more resilient economies in the region.
As diplomatic ties with the DRC improve and economic cooperation deepens, Rwanda is well-positioned to strengthen its role as a hub for regional trade and development.
