Rwanda's Central Government Debt (% of GDP), 1990-2022

Rwanda's central government debt as a percentage of GDP has fluctuated significantly over the past few decades, influenced by various economic and political factors. In the early 1990s, the debt-to-GDP ratio hovered around 50%, reflecting the country’s reliance on external financing to support its economic development. The 1994 genocide led to a sharp increase in debt, with the ratio peaking at 91.87% in 1995 as the government sought to rebuild the nation and stabilize the economy.

Throughout the late 1990s and early 2000s, Rwanda’s debt burden remained high, but it gradually decreased as the country stabilized and implemented economic reforms. By 2006, Rwanda had significantly reduced its debt ratio to 22.5%, following successful debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. However, in the 2010s, the debt-to-GDP ratio began to rise again, reaching 49.82% in 2019, reflecting increased borrowing to fund infrastructure projects and economic growth.

In response to the COVID-19 pandemic, Rwanda's central government debt surged to 65.57% of GDP in 2020, as the government increased borrowing to support public health and economic recovery efforts. The debt level remained elevated in 2021, at 66.58%, but has since stabilized at 64.43% in 2022. This increase in debt is linked to ongoing investments in infrastructure and development projects, which are expected to drive long-term growth.