Rwanda’s new Governor lays out BNR’s priorities, remains bullish over growth in 2025

Rwanda's newly appointed Governor Soraya Munyana Hakuziyaremye is optimistic about the country's economic growth trajectory, with projections exceeding 7 per cent by 2025. In an exclusive interview with CNBC Africa, Governor Hakuziyaremye discussed the robust macroeconomic indicators that signal a resilient and growing economy. In 2024, Rwanda's GDP soared to 8.9 per cent, surpassing the initial projection of 8.3 per cent. This outstanding performance was complemented by a significant drop in inflation rates from 14 per cent in 2023 to 4.2 per cent in 2024. The Governor attributed this success to favorable agricultural conditions and decreasing global commodity prices. Additionally, exports surged by 6.9 per cent while imports remained relatively stable, leading to a reduction in the trade deficit. The evenly distributed growth across key sectors such as services, industry, and agriculture further underlined Rwanda's economic strength. Looking ahead to 2025, Governor Hakuziyaremye emphasized the central bank's commitment to maintaining inflation within the target band of 2 to 8 per cent. She highlighted potential risks, including adverse weather events and geopolitical tensions, which could impact international trade and supply chains. The Governor stressed the importance of continuous monitoring and adjustment of policies to mitigate these risks effectively. Rwanda's financial sector also showcased remarkable resilience, with strong growth in various subsectors and robust financial stability indicators. The banking industry, insurance, microfinance, and pension funds all reported double-digit growth, with adequate capitalization and low non-performing loan ratios. The Governor's outlook for the future includes addressing emerging risks such as climate-related challenges and cybersecurity threats. She outlined proactive measures to enhance resilience, including climate risk assessments and cybersecurity diagnostics. The strategic focus on stress testing and capital buffers will ensure the financial sector's capability to withstand external shocks. Despite challenges in the global economy, Governor Hakuziyaremye expressed confidence in Rwanda's currency stability. She noted the stabilization of the Rwandan franc against the US dollar, with a decreased depreciation rate in 2024. The implementation of new industrial policies and strategies to boost exports and foreign direct investments will further support currency stability. The Governor emphasized the importance of maintaining high foreign exchange reserves and intervening in the market when necessary to manage volatility. With a strong foundation in place and strategic planning for the future, Rwanda's economy is poised for continued growth and stability.