Rwanda’s economy is projected to grow by 7.1% in 2025, according to Minister of Finance and Economic Planning Yusuf Murangwa. Growth is expected to continue in the following years, reaching 7.5% in 2026, 7.4% in 2027 and 7% in 2028.
Murangwa presented the 2025–2026 national budget to Parliament on Thursday, noting a 21% increase compared to the previous fiscal year. The new budget totals 7.03 trillion Rwandan francs (about $5.7 billion).
A large portion of the budget will fund infrastructure projects, including the construction of the new International Airport in Bugesera District. The government has allocated $600 million (approximately 853.6 billion francs) to the airport project for the upcoming fiscal year. The airport is expected to begin operations in 2028 and, by 2032, handle more than 14 million passengers annually.
The airport, which began construction in 2017, is being developed in two phases. Once complete, it will be among the most modern in East Africa, second only to Ethiopia’s Bole International Airport. Qatar Airways, which owns a 60% stake in RwandAir, is a key investor in the project. Rwanda also plans to borrow $200 million from the Asian Infrastructure Investment Bank to support construction.
Of the total budget, 4.1 trillion francs is expected to come from domestic sources. This includes 3.6 trillion francs in tax revenue and an additional 477.2 billion francs from other non-tax sources. Foreign aid is projected at 585.2 billion francs, while loans from international lenders are expected to contribute 2.15 trillion francs.
Government operations, including salaries and routine expenses, will receive 4.35 trillion francs. Development projects, such as infrastructure and investment efforts, are allocated 2.68 trillion francs.
In addition to the airport, the government said it will prioritize agriculture, electricity access, education and healthcare.
Murangwa said new tax measures will be introduced to boost revenue. These include higher taxes on tobacco, beer and mobile phone calls, as well as new levies on tourism and select petroleum products and digital services.
He said 58% of the budget is expected to be financed by domestic revenue, 8% through grants and 31% via external loans. He emphasized that the government aims to reduce reliance on foreign borrowing and strengthen economic resilience.
Foreign exchange inflows are projected to reach 4.1 trillion francs in the next fiscal year, which begins July 1.
