Articles tagged with “bugeseraaviationhub”

Rwanda's ambitious $2 billion Bugesera airport project aims to establish the country as a regional aviation hub, but the International Monetary Fund warns it will significantly increase public debt. The government, holding a 40 percent stake, faces an $800 million financial commitment, likely funded through external borrowing. The IMF projects Rwanda's public debt will rise to 86.3 percent of GDP by 2026, intensifying debt service pressures. While Kigali has introduced new taxes to boost domestic revenue, the Fund urges stricter fiscal discipline and careful monitoring of large infrastructure costs to mitigate economic risks. Credit rating agencies Moody's and Fitch recently downgraded Rwanda's outlook to negative, citing risks from regional instability and reliance on grants and concessional loans. The government expects debt to reach 80 percent of GDP by 2025, though analysts warn it could climb higher due to external pressures. Foreign currency denominated debt, exchange rate depreciation, and widening fiscal deficits have pushed Rwanda's debt to GDP ratio to 77.8 percent this year. Fitch forecasts it will stabilize at 81 percent by 2026, well above the median for similar rated economies, raising concerns over long term financial stability.