Kagame's Desperate Economy: When Rwanda Starts Taxing Weddings, You Know It's Broken

Rwanda’s government has now reached a new level of desperation. In a move that has shocked both citizens and observers, the Rwanda Revenue Authority (RRA) is now sending agents to weddings with tax forms. Yes decorators, DJs, food servers, dancers, and even the couple must now register their names, phone numbers, and tax ID numbers (TINs) at wedding venues.

While the regime hides behind claims of “formalizing the informal sector,” the truth is clear: Rwanda’s economy is in crisis. And it’s not just about weddings and it's about a government that has failed to build a strong, inclusive economy and is now clawing at joy itself just to stay afloat.

 The Symbol of a Collapsing Economy

A tax form at a wedding isn’t about order it’s about panic. It’s about a regime that’s run out of options.

This embarrassing policy shows that Kagame’s government, which once boasted of economic miracles and digital innovation, is now reduced to chasing cake decorators for taxes.

“They’ve taxed everything else. What’s next, birth certificates and funerals?”

The Real Picture: Rwanda’s Economy Is Not a Miracle It’s a Mirage

Despite years of glowing headlines and staged development conferences, Rwanda’s economy is falling apart. The government’s decision to support M23 rebels in Congo is now backfiring hard.

Key facts:

• Debt-to-GDP is projected to hit 78.2% by 2025

• Foreign aid is drying up after global sanctions

• Currency (RWF) has lost 100% of its value against the dollar since 2015

• Youth unemployment and informality are skyrocketing

  
  

In March 2025, Moody’s downgraded Rwanda’s economic outlook to “negative.” The reason? Rising debt, Congo conflict fallout, and declining investor confidence.

Who’s Paying the Price? The People.

• 90% of Rwandan workers are in the informal sector

• Only 9.7% have formal jobs

• Youths are turning to rideshares, market hustles, and survival gigs

• But now, even these are being taxed at weddings and roadside stalls

  
  

The RRA’s decision to invade weddings with tax forms proves the regime sees no boundary between governance and control. Not even love is safe.

Crystal Ventures and the Death of Real Business

While ordinary Rwandans are being squeezed, Kagame’s ruling party continues to protect Crystal Ventures Ltd (CVL)  the RPF’s billion-franc business empire.

CVL dominates:

• Construction

• Telecoms

• Agriculture

• Real estate

  
  

Meanwhile, SMEs are suffocating under unfair competition and rising taxes. The 2019 report showing that 0.4% of taxpayers bring in 91.4% of the nation’s tax revenue proves that the economy is elite-run and fragile.

Congo: The Gamble That Backfired

Instead of fixing the economy, Kagame chose war.

Rwanda’s deep involvement in eastern Congo and where it backed the M23 to plunder minerals and was meant to fund a collapsing economy through illegal extraction.

Now it’s costing Rwanda everything:

• EU, Germany, and the UK have slashed aid

• Army commanders are under sanctions

• Belgium relations are broken

• Investors are running scared

Aid Dependency Hiding in Plain Sight

Rwanda received:

• $1.33 billion in aid (2021)

• $1.07 billion in aid (2022)

  
  

But the drop in aid wasn’t due to self-reliance and it was replaced by commercial loans and IMF-backed debt.

Between February and December 2025, Rwanda must repay $42 million mostly borrowed under IMF’s Resilience and Sustainability Fund (RST) and the Poverty Reduction and Growth Trust (PRGT).

Debt is rising. Repayment power is falling. The Rwandan Franc has lost 100% of its value against the dollar since 2015 making debt service even more painful.

 Infrastructure Lies, Rural Struggles

While Kigali shines with LED lights, the rest of Rwanda remains dark:

• Rwanda’s per capita electricity usage is just 64.9 kWh  way below the African average

• Roads outside the capital are poor

• Schools and hospitals remain underfunded

“It’s a showroom economy — polished front, hollow inside.”

From taxing weddings to financing foreign wars, Kagame's economic model has reached its limit.

Kagame's economic collapse is no longer a theory it's a reality.