Rwanda’s economy has defied global and regional headwinds to register an impressive 8.9 percent growth in 2024, according to the International Monetary Fund (IMF). The growth, among the strongest in sub-Saharan Africa, is a testament to the country’s economic resilience and effective policy frameworks, the IMF said following the conclusion of Rwanda’s fifth review under the Policy Coordination Instrument.
In a statement issued late Wednesday, the IMF noted that the country’s economic performance was primarily driven by robust activity in the services, construction, and agriculture sectors. “Rwanda’s economy has demonstrated impressive resilience, recording strong growth supported by robust activity in the services, construction, and agriculture sectors,” said Li Bo, IMF Deputy Managing Director and Acting Chair.
Inflation has also remained contained within the National Bank of Rwanda’s (NBR) target range of 2 to 8 percent. The IMF attributed this stability to prudent monetary policy and an improved domestic food supply, which has helped ease pressure on consumer prices amid a volatile global environment.
Despite the positive outlook, the IMF highlighted growing fiscal and external pressures resulting from large-scale investment projects and a reduction in concessional financing. Additionally, the macroeconomic environment has become more challenging due to aid withdrawals and rising regional tensions.
In response, the Rwandan government has implemented a new tax reform package aimed at broadening the tax base and improving equity and efficiency in the revenue system. The IMF lauded this move as a critical step toward achieving fiscal sustainability and strengthening domestic resource mobilization.
The IMF’s latest assessment reinforces Rwanda’s reputation as one of Africa’s most dynamic economies, consistently posting high growth rates despite external shocks. As the country navigates a complex global and regional landscape, continued reforms, fiscal discipline, and strategic investment will be key to sustaining this economic momentum.
With 2024 marking another milestone in Rwanda’s development journey, the IMF’s endorsement is likely to bolster investor confidence and encourage continued international support for the country’s economic transformation agenda.
