Rwanda’s Low Debt Distress Risk Status Confirmed

The World Bank has this week confirmed Rwanda’s low risk of debt distress status. With a debt level of 32.9% of GDP, Rwanda is one of four countries in sub-Saharan Africa that fall into the category.

According to Senior Economist at the World Bank, Aghassi Mkrtchyan, Rwanda’s position has been achieved through a combination of careful borrowing, proper loan management and high economic growth. The Government attributes its successful management of the position to strategic prioritization and a preference for concessional loans over market value loans.

The East Africa Community (EAC) has set a debt to GDP threshold of 50%.

The latest World Bank figures put Rwanda’s economic growth at 8.6% in 2018, with inflation at just 1.2% in March 2019. The bank projects that growth will continue to measure between 7.6% and 8%.