The International Monetary Fund approved a $250 million credit facility for Rwanda, noting that a prolonged war in the Middle East may jeopardize the country’s resilience.
It is the first African country to seal an IMF economic package since the start of the Iran war which has pushed up energy, food, and fertilizer prices across the continent.
The loan agreement involves a 38-month program to help Kigali “adapt to tighter global financing conditions while sustaining growth,” the Washington lender said on Monday. Rwanda’s economy grew 9.4% last year but inflation hit 13% in April, far exceeding the National Bank of Rwanda’s 2-8% target range.