Rwanda Diversifies External Debt with Addition of Japanese Yen

Rwanda has expanded its external debt portfolio by adding the Japanese yen to its mix of borrowed currencies. The government secured ¥15 billion (about Rwf138.9 billion) on August 25, as part of a dual-currency commercial loan that also includes €82 million (about Rwf140.8 billion). This new tranche has a 15-year maturity and a six-year grace period, and is backed by the World Bank Group through a Policy-Based Guarantee.

The Ministry of Finance and Economic Planning (MINECOFIN) emphasized that this move should not be seen as a shift away from traditional currencies like Special Drawing Rights (SDR), US dollar, and euro. At the end of 2025, these three currencies accounted for 32.4%, 29.6%, and 22.1% respectively of Rwanda's public debt.

The Ministry stated that including the yen in its debt portfolio reflects a continuation of its diversified funding strategy rather than a departure from it. The decision to include the yen was guided by the Medium-Term Debt Strategy, which prioritizes sustainably sourced, low-cost financing.