The latter conducts regular evaluations of countries' financial and credit profiles worldwide. The rating reflects Rwanda's resilient economic growth, ongoing fiscal reforms to boost domestic revenue, and effective debt management.
The stable outlook acknowledges Rwanda's challenges, including balance-of-payments pressures, regional security risks, and growing fiscal deficits.
However, access to affordable concessional financing and a favorable debt structure with extended repayment terms help offset these risks.
S&P notes that Rwanda's debt servicing costs are significantly lower than those of similarly rated peers, with interest expenses projected to average 10% of government revenue from 2025 to 2028.
S&P Global forecasts Rwanda's economy to outpace many peers over the next five years, driven by substantial public investments in infrastructure, such as the new Kigali International Airport and airline expansion, alongside projects in agriculture, energy, health, education, and tourism. Rwanda's economy grew by 8.9% in 2024, with an 8% rise in the fourth quarter.
While agricultural growth was sluggish in 2023 and only moderately improved in 2024, favorable weather is expected to enhance output. The services sector's steady growth is also likely to draw greater private sector investment.
Despite these strengths, S&P highlights Rwanda's exposure to climate change, weather disruptions, and regional tensions.
The agency commends Rwanda's revenue-enhancing measures, including higher tax rates, digital tax systems, and an expanded tax base, which are poised to strengthen fiscal stability and narrow deficits in the medium term.
S&P's reaffirmation underscores confidence in Rwanda's proactive economic strategies, strong growth potential, and resilience amid challenges.
IGIHE
Source : https://en.igihe.com/economy/article/rwanda-retains-b-credit-rating-with-stable-outlook
