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Africa

Rwanda

Sunctions on external finances: Rwanda's vulnerability exposed

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Magara Bosco

Feb 22, 2025

Rwanda's economic struggles, debt, and reliance on aid are worsened by its involvement in the DRC, risking sanctions and financial instability

In a world where countries strive for stability and growth, Rwanda is often praised for its economic recovery after the genocide. However, beneath this image of progress lies a harsh reality: the country remains extremely poor, burdened by massive debt, and heavily reliant on international aid.


Behind official speeches about regional cooperation, a different picture emerges. Rwanda’s continuous involvement in the eastern Democratic Republic of Congo (DRC) is not just about solidarity—it is driven by economic and territorial ambitions. The country’s interest in the resource-rich lands of Kivu exposes its deeper motivations. While it claims to be defending its interests, Rwanda fuels a conflict that not only destabilizes the region but also drains its own limited resources.



This dependency makes the country vulnerable, surviving largely on external financial assistance.

The alliance with the RDF/M23 rebels is seen as a strategy to control mineral resources and expand territorial influence.


The International Monetary Fund (IMF) and S&P Global Ratings have raised concerns, warning that this aggressive approach could have severe economic consequences for Rwanda, which is already struggling with a mounting debt crisis.


The IMF has cautioned that continued support for the RDF/M23 could backfire, increasing public debt and slowing down an already fragile economic growth. "The consequences could be cataclysmic for a nation whose economy survives thanks to international financial aid."



If the security situation does not improve, Rwanda risks losing over a billion dollars in international assistance. Major donors, including the United Kingdom, are increasingly worried about how regional instability could impact humanitarian efforts.


Rwanda’s hidden involvement in the DRC through the M23 rebels only intensifies an already complex conflict, drawing international criticism. While calls for a peaceful resolution grow louder, Rwanda’s unwavering support for the rebels fuels ongoing violence with potentially disastrous economic effects for the country.



At this critical juncture, Rwanda faces a tough decision. Continuing its aggressive policies in the DRC could mark the beginning of its economic downfall. The country must decide whether to persist on this dangerous path or reconsider its approach to secure a stable and prosperous future for its people. "In refusing to recognize and correct its mistakes, Rwanda risks seeing its dream of development collapse like a house of cards."

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