Rwanda’s 2023 economic outlook

Rwanda's economic landscape in 2023 is under scrutiny following the country's recent completion of the repayment of its $400 million US dollar bond. In a recent interview with CNBC Africa, Ted Kaberuka, Partner at Centrix Group, provided insights into Rwanda's economic outlook for the year. The discussion revolved around the country's stance on raising another Euro bond, debt management strategies, sectoral investments, and the focus on healthcare and infrastructure. Kaberuka emphasized the importance of respecting financial commitments when taking on long-term debt, highlighting Rwanda's credibility in fulfilling its repayment obligations despite financial shocks. He underscored the significance of efficient resource management by the government to ensure timely debt repayments and maintain investor trust. Despite the completion of debt repayments, Kaberuka, along with the Central Bank officials, indicated that it is not the optimal time for Rwanda to engage in further borrowing from the markets due to the global economic uncertainties and slow recovery projections. The cautious approach to debt acquisition is seen as critical given the challenges faced by the country in recent years, including recession and subsequent shocks. Amid discussions on sectoral investments, Kaberuka pointed out the necessity of prioritizing sectors like agriculture, healthcare, and infrastructure to stimulate economic growth. He highlighted the importance of boosting domestic production to reduce dependency on imports, stabilize the currency, and enhance local value creation. In particular, he emphasized investing in agriculture to meet local food demands and improve self-sufficiency while also focusing on infrastructure development to facilitate production and enhance the investment environment. The conversation also delved into the significant investments being made in the healthcare sector, with Rwanda set to establish its first Biomedical Engineering Hub. Kaberuka lauded the move towards strengthening healthcare infrastructure, citing its potential to reduce import costs, create job opportunities, and enhance local pharmaceutical production. He highlighted the competitive advantage of investing in healthcare, given the potential for Rwanda to tap into a market currently dominated by few African countries. By bolstering the healthcare sector and aligning it with agricultural production, Rwanda aims to not only improve the health and well-being of its citizens but also stimulate economic growth and create a robust investment climate. Looking ahead, Rwanda's economic trajectory in 2023 appears to be guided by a prudent approach to debt management, strategic sectoral investments, and a focus on enhancing key sectors like agriculture and healthcare to drive sustainable development and economic prosperity.