National

President Paul Kagame yesterday held discussions with Antoinette Monsio Sayeh, the Director of the African Department at the International Monetary Fund (IMF), on the country’s roadmap towards self reliance.

Sayeh was accompanied by the outgoing IMF Resident Representative, Dmitry Gershenson, also present was the Permanent Secretary in the Ministry of Finance Kampeta Sayizonga.

“Rwanda is a model of aid efficiency and, together with the government, IMF aims at helping Rwanda to reduce its dependency on aid. Therefore, we review areas like the country’s inflationary rate, export diversification and access to credit,” Sayeh told journalists.

 “IMF will continue offering technical support to Rwanda’s macroeconomic strategies."

Sayinzoga said that the economy of Rwanda is maturing at a commendable rate, that discussions centred on how to improve the economy further.

“The African continent is enjoying economic growth at the moment and most governments are looking towards reducing their dependence on aid. With IMF’s cooperation, Rwanda has demonstrated that real development can be achieved and that economic independence is a very important aspect to be pursued,” Sayinzoga said.

Recently, the IMF eased restrictions on Rwanda’s non-concessional borrowing, allowing the country to have greater access to credit.

IMF provides policy advice and, when needed, financing to its members. IMF financing can be accessed through several windows depending on the country’s exact circumstances.

Rwanda has a non-financial arrangement with IMF called Policy Support Instrument (PSI), which is designed for countries that do not want or do not need IMF financial assistance, but seek ti consolidate their economic performance with IMF monitoring and support.

Rwanda’s economic growth is estimated to reach 7.7 per cent in 2012, driven mainly by a good harvest, and strong domestic demand, especially in the construction sector.

Over the past few months, the Rwandan franc has remained stable, acting as an external anchor, and was a key reason for the single digit inflation.

However, the higher inflation risks remain due to uncertainties related to exogenous shocks, including high fuel prices on the international market.

Contact email: ivan.mugisha[at]newtimes.co.rw