Rwanda has secured a $190 million World Bank Group-backed loan, marking the country’s first-ever borrowing in Japanese yen as Kigali moves to diversify its sources of international financing.
The 15-year financing package, announced by Rwanda’s finance ministry, includes a yen-denominated portion and an €82 million ($95.55 million) tranche. The government said the funds will support general budgetary needs, with priority areas including infrastructure, healthcare, education, agriculture and other productive sectors.
The move into yen-based borrowing is part of Rwanda’s strategy to broaden its currency base and strengthen ties with Asian investors. The finance ministry described the deal as a sign of Rwanda’s readiness for deeper engagement with Japanese yen-denominated capital and investors across Asia.
The loan also comes with an initial six-year grace period, meaning Rwanda will not begin repayments until after its existing $620 million international bond matures in August 2031. The financing is backed by two World Bank Group guarantees, including one from the Multilateral Investment Guarantee Agency and another through the International Development Association’s Policy-Based Guarantee.
Rwanda’s latest borrowing comes as the country continues to manage its debt position. S&P Global Ratings said in May that Rwanda’s debt structure remained relatively favourable, with its debt-to-GDP ratio falling to 72.4% from 73.1% in 2024. About 90% of the country’s external debt is estimated to be highly concessional, helping to keep financing costs and refinancing risks under control.
source: cnbc
