Market News

BY Philbert Girinema

KIGALI, May 8 (Reuters) – Rwanda’s economy is forecast to grow at a slower pace this year than in 2024, while government spending for the 2025/26 fiscal year is expected to rise by about a fifth, Finance Minister Yusuf Murangwa said on Thursday.

Murangwa said the economy is projected to expand 7.1% this year and jump to 7.5% in 2026. The economy is expected to grow 7.4% in 2027 and 7.0% a year later, he told parliament. The economy grew 8.9% in 2024, according to the statistics office.

Murangwa, who is presenting a draft budget for 2025/26 (July-June), did not give a reason for the expected slowdown in growth.

Rwanda’s economy largely depends on agriculture, tourism and manufacturing.

The government plans to spend 7.03 trillion francs ($5.01 billion) in 2025/26 (July-June), up from 5.82 trillion francs in 2024/25, he said.

A total of 4.11 trillion francs would come from domestic revenues, 2.15 trillion francs from loans and another 585.2 billion francs from external grants, Murangwa said.

He did not give details about the nature of loans the government planned to take.

A final version of the 2025/26 budget will be presented in June.

($1 = 1,403.7600 Rwandan francs)

(Reporting by Philbert Girinema; writing by George Obulutsa, Editing by William Maclean)