Fitch Ratings Ltd., the world’s third largest rating agency, has for the second time in a row affirmed Rwanda’s credit worthiness at “B.” This is on account of the country’s strong economic growth that has averaged 8 per cent over the years as well as a sustainable debt that is about 29 per cent of GDP.
These ratings confirm that Rwanda’s economic recovery is not by accident, but rather a carefully planned, managed and sustainable process.
Credit therefore goes to the technocrats at the National Bank of Rwanda and the Ministry of Finance and Economic Planning who have ensured a stable macroeconomic environment by minimising foreign exchange volatility and low inflation rate even in the wake of turbulence in the global economy.
It is such factors as low inflation, stable exchange rate, low national debt and political stability that make Rwanda stand out as a good place for business.
Fitch Ratings therefore clears any doubts from skeptics about Rwanda’s irreversible progress to sustainable peace and development.
In international markets, a country’s credit worth is assessed according to ability to repay loans, the same way commercial banks evaluate individual or corporate borrowers. Such ratings therefore mean that it is safe do business with Rwanda as a country because chances of default are almost zero.
That is why, when the country issued the $400 million Eurobond last year, there was near stampede as foreign investors scrambled to lend Rwanda their money and be part of the economic success story.
No one has a sharper eye to peep into the future, be it political or economic, than financial analysts. So, the experts have spoken and facts are there for all to see. No investor can afford not to be part of this unfolding success story that is firmly grounded in a stable macroeconomic and political environment.