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IMF approves Rwanda’s Policy support instrument
KIGALI – The Executive Board of the International Monetary Fund (IMF) today completed the seventh and final review under Rwanda’s Policy Support Instrument (PSI) and approved a new three-year PSI.
In completing the review, the Board approved the authorities’ request for a waiver for non-observance of the continuous assessment criteria related to the ceiling on contracting non-concessional borrowing (NCB).
The Executive Board took note of Rwanda’s cancellation of the current PSI, which was scheduled to expire in January 2014. The IMF’s framework for PSIs is designed for low-income countries that may not need financial assistance, but still seek IMF advice, monitoring, and endorsement of their policy frameworks. Members’ programs under PSIs are based on country-owned poverty reduction strategies adopted in a participatory process involving civil society and development partners.
The authorities’ program aims to lay the foundations for strong and inclusive growth, with a strong emphasis on economic transformation; rural development; productivity and youth employment; and accountable governance, supported by macroeconomic stability and improved public financial management. Rwanda’s program will build on the progress made under the previous PSI-supported program and is aligned with the objectives of the new economic development and poverty reduction strategy.
The Executive Board approved a three-year PSI for Rwanda on June 16, 2010. On June 17, 2013, the Executive Board completed the sixth review and approved an extension of the PSI by seven months to end-January 2014.
Following the Executive Board’s discussion of Rwanda, Mr. Naoyuki Shinohara, Deputy Managing Director and Acting Chair, stated:
“The Rwandan authorities are to be commended for the strong implementation of their economic program under the Policy Support Instrument. Prudent and inclusive policies, good governance, and support from development partners have contributed to sustained economic growth and poverty reduction.
“Going forward, fiscal policy will need to focus on domestic revenue mobilization to finance the authorities’ ambitious development goals. Aligning spending with available resources and judicious selection and financing of investment projects will minimize risks to the budget. It will also be important to strengthen debt management capacity and follow a prudent approach to new borrowing to entrench long-term fiscal and debt sustainability. The central bank will need to closely monitor rising inflationary pressures and adjust the policy stance as needed while maintaining exchange rate flexibility. Efforts to increase financial inclusion and bolster the regulatory and supervisory frameworks should also be accelerated.
“The authorities’ new poverty reduction strategy aims to sustain high and inclusive growth. The authorities should maintain their commitment to prudent policies and pursue their broad reform agenda to tackle structural impediments. In particular, further reducing the costs of doing business and addressing infrastructure deficiencies would support economic diversification, foster private sector development, and broaden the export base. The renewed focus on integration at the East African Community level should help in this regard. Finally, continued emphasis on policies that will further assist poverty reduction efforts is welcome.”
Rwanda’s economic performance over the last decade has been an economic success story. Its macroeconomic performance has generally outperformed its peers in the region. Prudent fiscal and monetary policies geared toward maintaining macroeconomic stability, coupled with a strong emphasis on building institutional capacity, promoting good governance, and creating a business friendly environment, contributed to low inflation and average annual economic growth in excess of 8 percent over the last decade. Public debt remained modest and reserve buffers kept the economy resilient to shocks.
However, Rwanda faces some key vulnerabilities, including its high dependence on donor aid, low government revenue, narrow export base, and weak infrastructure, with resulting high costs of doing business that arise from relatively high energy and transport costs. For example, recent economic developments have been strongly influenced by the suspension and delays of aid flows last year, and their eventual resumption this year.
Reflecting the slowdown in the first half of the year, growth for 2013 is projected to be 6.6 percent. For 2014, growth of 7.5 percent is projected, supported by a recovery in agriculture and a pick-up in services. Headline inflation is projected to rise to 6.5 percent by end-2013, reflecting rising food prices because of a relatively poor second harvest.
The objectives of the new PSI program are centered around four key pillars:
Private sector development: Strong private sector development is an important pillar of the authorities’ economic transformation strategy. In this regard, the government intends to continue its investment program in strategic infrastructure to reduce the cost of doing business while deepening its reforms to continue improving the business environment.
Exports promotion: The new export strategy is aimed at increasing export earnings through broadening of the export base. The strategy focuses on a limited number of products with a view to diversify into non-traditional exports that are particularly agro-based while taking advantage of traditional exports to extend production and add value.
Domestic resource mobilization: In view of the important investment spending that is needed, one of the main priorities will remain creation of fiscal space through accelerated domestic resource mobilization and rationalization of spending.
Financial sector development: Financial sector development is the fourth pillar of the program. Financial inclusion is seen as a means to further ensure connection of the population to the market while increasing monetization of the economy. The financial reforms and the strengthening of capital markets are expected to allow mobilization of cheaper resources and support private sector investment.
The landed cost of imported Premium Motor Spirit (petrol) has climbed above the gantry price offered by the Dangote Petroleum Refinery, reinforcing calls by petroleum marketers for Nigeria to halt fuel importation and prioritise local refining.
The latest Energy Bulletin released by the Major Energies Marketers Association of Nigeria showed that the spot landed cost of imported petrol stood at N1,223.32 per litre as of July 29.
The price is higher than the Dangote refinery’s gantry price of N1,215 per litre, indicating that imported petrol currently costs marketers more than supplies sourced from the 650,000-barrels-per-day Lekki-based refinery.
The MEMAN bulletin also showed that Brent crude averaged $90 per barrel during the review period.
The development comes days after the Independent Petroleum Marketers Association of Nigeria renewed its call for an end to petrol importation, arguing that local refining capacity is sufficient to meet the country’s fuel demand.
IPMAN National Publicity Secretary, Chinedu Ukadike, recently told The PUNCH that there was no justification for continued petrol imports when local refineries, particularly the Dangote refinery, were producing enough to supply the domestic market.
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He argued that importing petrol when locally refined products were available only exerted additional pressure on foreign exchange and undermined investments in domestic refining.
The latest pricing data appears to support the marketers’ position, with the landed cost of imported petrol now exceeding the Dangote refinery’s gantry price.
According to the MEMAN bulletin, Dangote’s coastal price for PMS stood at N1,195 per litre, while its gantry price was N1,215 per litre, inclusive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority charges.
The report also showed that the naira averaged N1,367.03/$ during the review period, while international crude oil prices remained elevated, contributing to higher import costs.
The rise in global crude prices also pushed up the cost of refined petroleum products internationally. The price of diesel traded on the Intercontinental Exchange in Europe averaged $1,246.54 per metric tonne during the review period.
The bulletin further revealed that the spot landed cost of diesel rose to N1,739.96 per litre, compared with a 30-day average of N1,427.00 per litre, while aviation fuel climbed to N1,616.43 per litre against a 30-day average of N1,421.10 per litre.
The pricing trend suggests that locally refined petrol currently offers marketers a cheaper alternative than imports.
Earlier, the Independent Petroleum Marketers Association of Nigeria urged the Federal Government to halt the importation of petrol, arguing that imported petrol has become more expensive than locally refined products and is frustrating efforts to stabilise prices in the downstream sector.
The association said the continued issuance of fuel import licences was worsening price volatility, putting additional pressure on the naira and undermining the competitiveness of domestic refineries, particularly the Dangote Petroleum Refinery.
Speaking with The PUNCH, the National Publicity Secretary of IPMAN, Chinedu Ukadike, said the recent import licences issued by the NMDPRA had failed to achieve their intended objective of moderating domestic fuel prices.
According to him, petrol imported under the new licences is being sold at rates significantly higher than the price of products supplied by the Dangote refinery.
Meanwhile, data from Petroleumprice.ng also showed that some depot owners continued to adjust their ex-depot petrol prices on Thursday amid changing market conditions. AIPEC sold at N1,216 per litre.
Ardova reduced its ex-depot price by N1 to N1,217 per litre, while Ascon and T-Time each cut their prices by N2 to N1,216 per litre. Emadeb, however, increased its price by N1 to N1,218 per litre, while NIPCO retained its price at N1,217 per litre.
Outside Lagos, Aradel raised its ex-depot price by N5 to N1,240 per litre in Port Harcourt. Matrix and Sigmund reduced their prices by N10 each to N1,225 and N1,224 per litre, respectively, while T.S.L. cut its price by N15 to N1,225 per litre.
In Calabar, Hong Petroleum, Mainland and Sobaz each reduced their depot prices by N5 to N1,220 per litre. In Warri, A.Y.M. Shafa increased its price by N3 to N1,233 per litre, while Optima raised its price by N2 to N1,232 per litre. Matrix reduced its price by N3 to N1,230 per litre, while Rainoil cut its price by N2 to N1,240 per litre.
The PUNCH reports that the pump prices of petrol currently hover around N1,250 to N1,300 per litre in Lagos and Ogun states, while they are higher in the North and other distant locations.
A call has gone to the political leadership across the Economic Community of West African States (ECOWAS) for the institution of a regional pricing benchmark for oil and gas to address rising concerns of uneven pricing.
Making the call on Wednesday in Abuja, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Rabiu Umar, noted that a standard pricing formula across the region would promote cross-border trade and attract investment into the downstream petroleum sector.
He expressed concern that Africa still relies on international markets to determine the prices of petroleum products produced within the continent despite its abundant resources.
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He used the media briefing to disclose that Nigeria, in partnership with S&P Global Commodity Insights and the West Africa Regulators Forum (WARF), would organise the second West Africa Refined Fuel Conference from 11 to 12 August in Abuja.
The theme of the conference is: “Funding West Africa Infrastructure & Distribution to Create a Transparent Market for Regional Price Benchmarks.”
According to him, the event is aimed at developing a formidable regional marketplace where petroleum products can be traded competitively.
He said: “The vision is to establish West Africa as a credible regional marketplace where petroleum products can be traded efficiently, transparently and competitively.
“By strengthening infrastructure, harmonising regulations and improving market data, the region can enhance price discovery, facilitate cross-border trade and attract greater investment.”
Umar said progress had been recorded since the maiden edition of the conference in 2025, including the establishment of the West Africa Regulators Forum, the publication of West African reference prices, and the opening of S&P Global Commodity Insights’ regional office in Abuja.
He said the 2026 edition would focus on infrastructure financing, regional cooperation, market transparency, logistics development, and expanding refining capacity to improve energy security and reduce dependence on imported petroleum products.
He identified pipelines, storage facilities, marine terminals, ports, rail infrastructure, digital commodity exchanges, trading platforms, strategic petroleum reserves, LNG infrastructure, and logistics corridors as critical investments needed to create an integrated regional energy market.
Umar stressed that regulators have a key role to play in ensuring fair competition, investor confidence, consumer protection, and regional cooperation through harmonised standards and regulations.
He cited the Amsterdam-Rotterdam-Antwerp (ARA) trading hub in Europe as an example of a benchmark that considers supply, demand, transportation, and logistics costs.
He said: “The more we are able to produce, the more relevant it becomes to have our own reference pricing.”
In line with its corporate vision, Summit Bank has reinforced its commitment to opportunities and business expansion, entrepreneurship, and Nigeria’s growing digital economy through its support of the newly-commissioned Hajaj-Zoec Digital Market in Kano. Established as a landmark commercial initiative, the digital market will enhance ecommerce and economic opportunities for the African market. It is projected to create more than 100,000 jobs and generate an estimated N50bn annually in economic activity.
Summit Bank joined government officials, industry leaders, and initiative stakeholders on Saturday for the official commissioning of the market. Among the dignitaries were Barr. Abdulkarim Kabiru Maude, Kano State Commissioner of Justice; Yusuf Ata, Minister of State for Housing and Urban Development, represented by his Special Assistant (Technical), Kabir Aminu Dutse; Ahmed Idris, former Accountant General of the Federation; Dr. Mansur Muhtah, Chairman of Bank of Industry; and Alhaji Jamilu Abdussalam, CEO, Hajjaj Real Estate.
In his remarks, Dr. Sirajo Salisu, Summit Bank’s MD/CEO, reaffirmed the bank’s belief that access to ethical finance and a thriving commercial ecosystem remain key drivers of sustainable economic growth.
Developed under a public-private partnership (PPP) involving Kano State Government, Hajjaj ZOEC Real Estate, and ZOEC Construction, with Summit Bank as a proud sponsor, the digital market was inaugurated in Tudun Wada, Sabon Gari, Kano. As a transformative project, the bank’s support reflects a commitment to supporting businesses, deepening financial inclusion, and building a more connected digital economy. “We believe this market is not only an opportunity for Kano State or Northern Nigeria but for the entire African continent. Instead of travelling all the way to China to purchase goods in bulk, traders will be able to come to Kano and place their orders here,” Alhaji Abdussalam said, during his remarks.
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While speaking during the ceremony, Dr. Salisu said the significance of the digital market goes beyond its physical infrastructure. “Markets have always been at the centre of enterprise. What the Hajaj-Zoec Digital Market represents is the next stage of evolution that blends physical and digital commerce into a modern ecosystem where businesses can grow, technology can thrive, and entrepreneurs can unlock new opportunities,” he said.
Dr. Salisu said supporting enterprise is a core purpose of Summit Bank as a non-interest financial institution. “We believe banking should do more than provide financial services; it should help create the conditions that allow businesses to flourish,” adding that when entrepreneurs have access to the right ecosystem, markets become stronger, jobs are created, families earn better livelihoods, and communities prosper. He said this is the kind of impact that Summit Bank supports.
Hajaj-Zoec Digital Market is designed as the largest, purpose-built modern business hub for electronic dealers, tech entrepreneurs, wholesalers, retailers, and investors across Nigeria and West Africa. It will provide more than 1500 trading spaces, according to Abdussalam, with state-of-the-art amenities and digital infrastructure. This development strengthens Kano’s longstanding position as a frontline commercial center in Nigeria, and a hub other region can feed into.
For Summit Bank, the development aligns closely with its broader mission of supporting productive enterprise through ethical, transparent and customer-focused banking solutions. The Bank believes that sustainable economic development is built not only through access to finance but also through meaningful partnerships that drive business growth.
The commissioning also reflects Summit Bank’s growing engagement with Nigeria’s SME sector. Through initiatives such as its recent Market Storm activations across key commercial centers in Kano, Kaduna and Abuja, the Bank has continued to deepen relationships with traders, entrepreneurs and small business owners, taking financial education and banking solutions directly to the communities where commerce happens every day.
Summit Bank said it remains committed to supporting initiatives that advance entrepreneurship, expand financial inclusion and strengthen Nigeria’s digital economy, while helping businesses build lasting value for themselves, their customers and their communities.
As an innovative non-interest financial institution, the bank continues to champion a banking model rooted in ethics, transparency, partnership, shared prosperity and responsible growth, connecting finance with real economic activity and contributes meaningfully to national development.
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