The figures from the Ministry of Finance and Economic Planning reveal that as of December 2024, Rwanda’s debt stood at 78.7% of its Gross Domestic Product (GDP), up from 73.5%the previous year.

The country’s total debt amounts to **14,781.9 billion Rwandan Francs (RWF)**. A significant portion of this is **external concessional loans**, which have long repayment periods and low-interest rates.

Key Features of Rwanda’s Debt

1. Concessional Loans (Preferred Debt
– These loans are favored by countries due to their low-interest rates, typically between 0% and 1.5%
– They come with extended repayment periods often ranging from 20 to 40 years
– Many also include a grace period (10–20 years) before repayments begin, allowing the country time to stabilize economically.
– They are primarily used for **development projects, such as:
– Infrastructure development
– Healthcare
– Education
– Environmental protection

2. Benefits of Concessional Loans
– Help reduce the burden of high-interest commercial debt.
– Support rapid economic growth without causing financial strain.
– Enable long-term investments in key development sectors.

Breakdown of Rwanda’s Debt

A. External Debt (80.1% of Total Debt) – 11,846 Billion RWF
1. Concessional Loans (10,392 Billion RWF)
– Provided by international financial institutions such as:
– The World Bank
– The  African Development Bank (AfDB)
– The International Monetary Fund (IMF)
– Amounting to 8,885 Billion RWF.
– Bilateral loans (country-to-country agreements) total 1,506 Billion RWF

2. Commercial Loans (Non-Concessional) – 9.8% of External Debt (1,454 Billion RWF)
– These are market-rate loans with stricter terms.
– Example: RwandAir’s debt stands at $66.8 million, including $49.2 million from the previous year.

B. Domestic Debt (20% of Total Debt) – 2,935.9 Billion RWF
– Mostly government-issued securities** (bonds, treasury bills).
– Some loans are taken by state-owned enterprises
– Raised through capital markets and the National Bank of Rwanda.

Projections for 2025/26
– **New external borrowing is estimated at 2,151.9 Billion RWF