AHF Rwanda and the Rwanda NGO Forum (RNGOF) have joined the global Freedom from Debt Campaign, calling for greater access to affordable financing and reforms to the international financial system amid concerns that growing debt-service obligations could constrain investments in critical sectors. The appeal was made on June 11 during the launch of the Freedom from Debt Campaign, a global initiative advocating debt justice and more equitable financing for developing countries. Global concerns over debt and development According to the organisations, the campaign seeks to draw attention to the impact of sovereign debt on countries' ability to finance healthcare, education, social protection and other public services, particularly at a time when many developing economies are facing tighter financial conditions. Globally, more than 3.4 billion people live in countries that spend more on debt repayments than on healthcare or education, the campaign says, warning that such trends can divert resources from essential services and slow progress toward sustainable development. Rwanda’s development progress acknowledged The organisations also recognised that Rwanda has recorded significant achievements in healthcare, education, economic growth and poverty reduction over the past two decades through strong leadership, strategic planning and partnerships that have supported long-term development. However, they said Rwanda, like many developing countries, is facing challenges linked to the evolving global financial environment, including rising global interest rates, exchange-rate fluctuations, declining development assistance and increasing financing needs for infrastructure and economic transformation. Rising debt and financing structure As of June 2025, Rwanda’s public and publicly guaranteed debt rose to 74.8 per cent of GDP, up from 69.6 per cent in June 2024, according to the Ministry of Finance and Economic Planning’s Public Debt Statistical Bulletin (September 2025). The increase, it indicated, was driven by higher disbursements from concessional creditors, alongside valuation effects that raised the value of the Rwandan franc in US dollar terms. However, Rwanda continues to maintain a moderate risk of debt distress, supported by the high share of concessional financing, which accounts for 88.2 per cent of external debt, it observed. Government position on debt sustainability While presenting the 2026/27 national budget to Parliament on June 11, the Minister of Finance and Economic Planning, Yusuf Murangwa, said Rwanda's debt indicators remain within acceptable levels. He pointed out that by December 2025, about 89.2 per cent of the country's public debt consisted of concessional loans—financing provided mainly by international financial institutions and development partners at low interest rates and with long repayment periods. The government has consistently indicated that public borrowing is being directed toward investments that support economic growth, infrastructure development and improvements in citizens' wellbeing, while maintaining debt sustainability. Concerns over future financing pressures While the country remains at a moderate risk of debt distress and continues to manage its debt responsibly, the organisations said increasing debt-service obligations highlight the importance of ensuring that future borrowing contributes to sustainable and inclusive development. They also expressed concern that declining international development assistance could make it more difficult for developing countries to finance priority sectors such as healthcare, education, social protection and climate resilience. Debt as a development and human issue The debt crisis is not only about numbers and financial obligations. It is about people, the organisations said in a joint statement, arguing that higher debt-servicing costs can reduce the fiscal space available for investments in hospitals, schools, medicines, youth employment programmes and climate adaptation initiatives. The campaign frames sovereign debt as both an economic and development issue, maintaining that sustainable development cannot be achieved if countries are trapped in cycles of borrowing and repayment that limit their ability to invest in their citizens. At the same time, the Government has maintained that Rwanda's debt remains sustainable and is largely composed of concessional loans. Call for global financing reforms As part of its recommendations, the Freedom from Debt Campaign is calling for the protection of healthcare, education and social protection budgets from the pressures of rising debt-service obligations. The campaign also advocates expanded access to affordable and concessional financing, stronger international cooperation to reform the global financial architecture, and measures to address inequalities in sovereign lending. Other proposals include the creation of a Borrowers' Forum to strengthen the collective voice of developing countries in debt negotiations, automatic debt-service pauses during public health emergencies and climate-related disasters, increased use of debt-for-development swaps, and the exploration of innovative financing mechanisms to support debt relief and investments in essential public goods. Appeal for sustained investment in people AHF Rwanda and RNGOF said Rwanda's development achievements demonstrate the importance of sustained investment in people and that preserving those gains will require financing systems that support, rather than constrain, long-term development objectives. They called on governments, development partners, international financial institutions, civil society organisations and the private sector to work together to ensure that debt remains a tool for development rather than a barrier to prosperity.
