from PHYLLIS BIRORI in Kigali, Rwanda
Rwanda Bureau
KIGALI, (CAJ News) – RWANDA’S efforts to strengthen economic resilience against future climate shocks have received $164.6 million shot in the arm from the International Monetary Fund (IMF).
The Bretton Woods Institution announced this week on Wednesday that part of the package that comprises $76.2 million would be channeled towards the tiny east African nation’s Resilience and Sustainability Facility (RSF) while the additional $88.4 million would come from the IMF’s Standby Credit Facility.
“Going forward, the policy mix should prioritize macroeconomic and financial stability, fiscal sustainability, and the restoration of buffers. Maintaining the strong reform momentum under the RSF will help bolster the country’s economic resilience to future climate shocks,” the IMF said.
Rwanda, which is predicted to be one of the African continent’s fastest growing economies this year has seen its economic growth being driven by agriculture, hospitality, travel, tourism, construction, information and communication technology (ICT), among others.
Just like any other east African nation that suffered severely from effects of floods caused by climatic change, Rwanda has been urged to plan wisely on its fiscal strategy which is aimed at mitigating the impact of ongoing flooding that would hinder its economic growth.
Rwanda envisions becoming an upper middle-income country by 2035—and high-income by 2050.
The economy of Rwanda has undergone rapid industrialisation due to a successful governmental policy spearheaded by President Paul Kagame.
Rwanda’s mixed economy witnessed an economic boom in the early 2000s, which improved the living standards of many Rwandans.
The president Kagame’s progressive visions have been the catalyst for the fast transformingthe of the “Singapore of Africa” economy, which saw Rwanda’s industrial sector grow, contributing at least 16% of the country’s gross domestic product (GDP).
– CAJ News