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Rwanda sees economy growing 7.1% in 2025 and 7.5% in 2026
5:38 CAT | 12 Jun 2025
FILE - Residents walk at an open air grocery market in the outskirts Kigali, Rwanda, April 26, 2024. [File photo: Reuters/Jean Bizimana]
Rwanda plans overall spending of 7 trillion Rwandan francs ($5 billion) next fiscal year, 21% more than this year, Finance Minister Yusuf Murangwa said on Thursday.
The increased spending will support the construction of a new international airport and government priorities like boosting agricultural productivity, expanding electricity access and upgrading education and healthcare, the minister said in a budget speech.
The budget introduces tax changes to boost revenue, including through excise duties on cigarettes, beer and airtime, a new tourism tax and by reinstating value-added tax on some items like fuel.
Murangwa said the plan was for 58% of the budget to be financed from domestic sources, mainly tax revenue, 8% from grants and roughly 31% from external loans.
He said the government was working to stabilise debt and make the economy more resilient to shocks.
Domestic revenues are projected at 4.1 trillion Rwandan francs in the fiscal year starting in July.
The East African country’s economy is forecast to grow 7.1% in 2025 and 7.5% in 2026.
The new international airport in Bugesera, about 40 km (25 miles) from the capital Kigali, is expected to be ready by 2028 and cost about $2 billion.
Source: Reuters
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