Press Release No. No: 15/157

Press Release: Statement by an IMF Mission at the Conclusion of its Visit to Rwanda

April 3, 2015

An International Monetary Fund (IMF) mission, led by Paulo Drummond, visited Kigali from March 23 to April 2 to conduct the third review of the economic program supported by the Policy Support Instrument (PSI).¹

Mr. Drummond released the following statement at the end of the mission:

“Rwanda’s recent economic performance has been favorable. Economic growth in 2014 rebounded to 7 percent. The pick-up in growth was broad based, led by services and construction sectors. Agriculture output also recovered due to favorable weather. Consumer price inflation remained low at below 1 percent at end-February, driven by low food and fuel import prices.

“Policy performance under the IMF-supported program was satisfactory. All quantitative targets for end-December 2014 were met. The indicative target on revenue mobilization was narrowly missed owing to weaker than expected VAT and excise collection. The fiscal deficit as of end-2014, however, was smaller-than-expected due to lower capital expenditure. Progress was made on the structural reform agenda.

“The near-term economic outlook is stable, but risks linger externally. Growth is projected at 6.5 percent and is expected to remain broad-based. Inflation is projected to remain subdued. Risks arise mainly from the lower than expected increase in exports and adverse weather.

“Progress has been made in outlining the economic policy framework that would underpin growth in the near term. In particular, the 2015/16 budget, to be presented to parliament in June, aims to sustain efforts to mobilize revenue while protecting priority spending and limiting domestic financing. On monetary policy, the National Bank of Rwanda plans to continue to pursue a prudent monetary stance.

“The mission met with Minister of Finance and Economic Planning Amb. Claver Gatete, Governor of the National Bank of Rwanda Hon. John Rwangombwa, as well as with other senior government officials, development partners, and representatives of the business community and civil society.

“The mission and the authorities agreed to continue the discussions in the coming weeks to reach final understandings.”

¹ The PSI is an instrument of the IMF designed for countries that do not need balance of payments financial support. The PSI helps countries design effective economic programs that, once approved by the IMF's Executive Board, signal to donors, multilateral development banks, and markets the Fund's endorsement of a member's policies (see http://www.imf.org/external/np/exr/facts/psi.htm). Details on Rwanda’s current PSI are available at www.imf.org/rwanda.