Author: Wycliffe Nyamasege

Rwanda Central Bank Governor Soraya Hakuziyaremye made the revelation during a press conference on Thursday, May 15, following a recent Monetary Policy Committee (MPC) meeting.

Addressing growing interest in gold among central banks in the East African Community (EAC) region, Governor Hakuziyaremye said Rwanda’s central bank conducted a detailed study on incorporating gold as an additional reserve asset.

The move follows a trend observed by the EAC Central Bank Monetary Affairs Committee, which noted several regional central banks considering gold to diversify and strengthen their reserves.

“Given gold’s ability to counter shocks in the financial market and serve as a hedge against external uncertainties, we have decided to explore it as a new asset class,” Governor Hakuziyaremye explained.

The central bank boss emphasised that capital preservation, liquidity, and reasonable returns remain the primary objectives for the central bank’s foreign reserves investments.

“The good news is that gold meets these criteria at this time, which makes our consideration positive,” she said.

The central bank has already secured board approval to include gold investments in its portfolio.

However, Governor Hakuziyaremye highlighted that gold is a new asset for the bank, and further updates on acquisition volumes and expected returns will be communicated by the end of the current financial year.

“This is a learning process, and as we continue benchmarking with our peers, we plan to start adding gold to our reserves from July 2025,” she said.

Meanwhile, the bank maintained the lending rate at 6.5 percent, a level Governor Soraya noted is aimed at keeping inflation within the targeted 2 to 8 percent range.

Commenting on the economic outlook, she said headline inflation rose to 6.7 percent in the first quarter of 2025, up from 5.2 percent in the previous quarter, largely driven by increases in core and fresh food prices. Core inflation climbed to 6.1 percent, while fresh food inflation surged to 11.2 percent, mainly due to a base effect from unusually low prices in early 2024 and rising meat prices.

Despite the uptick, inflation remains within the medium-term target range and is expected to average 6.5 percent in 2025 before easing to 3.9 percent in 2026.

“Inflationary risks remain, particularly from global geopolitical tensions and shifting trade policies,” the central bank governor warned, but emphasized that the current rate should continue to anchor inflation expectations.

The recent MPC meeting also noted Rwanda’s ongoing economic resilience, with the Composite Index of Economic Activity (CIEA) registering a 9.3 percent year-on-year increase in Q1 2025, supported by robust industrial and services performance. The economy grew by an impressive 8.9 percent in 2024, buoyed by a rebound in agriculture and strong domestic demand.

However, Rwanda’s trade deficit widened by 10.8 percent in Q1 2025, as merchandise exports fell by 3.0 percent—mainly due to declining re-exports—while imports rose 5.8 percent, driven by increased demand for machinery and raw materials. This put pressure on the Rwandan franc, which depreciated by 2.46 percent against the U.S. dollar by the end of April.

NBR Governor Soraya Hakuziyaremye announced the decision on Thursday, May 15, a day after a meeting of the Monetary Policy Committee (MPC), which sets the rate quarterly to guide the cost of borrowing and maintain macroeconomic stability.

This marks the fourth consecutive time the MPC has held the rate at 6.5 percent, following its initial reduction from 7.0 percent in August 2024.

Addressing members of the press, Governor Soraya said the current rate remains appropriate to keep inflation within the targeted 2–8 percent band.

Headline inflation rose to 6.7 percent in the first quarter of 2025, up from 5.2 percent in the previous quarter, largely driven by increases in core and fresh food prices. Core inflation climbed to 6.1 percent, while fresh food inflation surged to 11.2 percent, largely due to a base effect from unusually low prices in early 2024 and rising meat prices.

Despite the uptick, inflation remains within the medium-term target range and is expected to average 6.5 percent in 2025 before easing to 3.9 percent in 2026.

“Inflationary risks remain, particularly from global geopolitical tensions and shifting trade policies,” the central bank boss warned, but emphasised that the current rate should continue to anchor inflation expectations.

The MPC also noted Rwanda’s ongoing economic resilience, with the Composite Index of Economic Activity (CIEA) registering a 9.3 percent year-on-year increase in Q1 2025, supported by robust industrial and services performance. The economy grew by an impressive 8.9 percent in 2024, buoyed by a rebound in agriculture and strong domestic demand.

However, Rwanda’s trade deficit widened by 10.8 percent in Q1 2025, as merchandise exports fell by 3.0 percent—mainly due to declining re-exports—while imports rose 5.8 percent, driven by increased demand for machinery and raw materials. This put pressure on the Rwandan franc, which depreciated by 2.46 percent against the U.S. dollar by the end of April.

Money market trends have followed suit. The interbank rate declined to an average of 6.78 percent in Q1 2025, down from 8.29 percent a year earlier, reflecting the impact of earlier rate cuts. Deposit and lending rates also fell, with the average lending rate dropping to 15.89 percent from 16.35 percent.

Going forward, the central bank reaffirmed its commitment to closely monitoring both global and domestic economic trends and to adjusting policy as needed to maintain price stability and support growth.

“The MPC stands ready to take appropriate measures if inflationary pressures intensify,” Soraya stated.

The award recognises Africa Re’s significant strides in expanding its footprint across the continent and positioning itself as a global player in the reinsurance sector.

Organised by the Africa CEO Forum, the Pan-African Champion Award is presented to an African company that has most increased its presence across the continent while implementing a consistent and coherent regional growth strategy.

Eligible companies must operate in more than five African countries and record annual revenues of at least €50 million.

In 2024, the award was bestowed upon the Africa Finance Corporation (AFC) for its instrumental role in developing infrastructure and industrial value chains throughout Africa.

In a statement following Africa Re’s victory, Dr. Corneille Karekezi, Group Managing Director of the corporation, welcomed the recognition as a reflection of its achievements over the past year.

“I thank God for this continental recognition, which comes on top of an exceptional 2024 year in all performance metrics. We are the largest and most financially rated reinsurance company in Africa and the Middle East. With 31% of our 2024 turnover ($1.2 billion) coming from outside Africa, we export African excellence in overseas markets such as China, the Middle East, Brazil, Israel, and India,” Dr. Karekezi said.

Africa Re’s cross-border operations and growing share of business from international markets were key factors in its selection. The company’s performance in 2024 and continued expansion have strengthened its position as a driver of African excellence in global financial services.

The Africa CEO Forum Awards, organised in partnership with the International Finance Corporation (IFC) and Forvis Mazars, celebrate leadership, innovation, and excellence within Africa’s private sector.

In addition to Africa Re’s recognition, this year’s awards honoured several other standout performers. Danone received the Local Impact Champion award for its contributions to community development and sustainability, while Rawbank was named Family Business of the Year, reflecting its strong governance and generational leadership.

The Gender Leader award went to Schneider Electric, recognising its commitment to gender equity in the workplace. Nala, a fintech company driving digital disruption, earned a place in the Disrupters Club.

Finally, Idrissa Nassa, CEO of Coris Bank, was honoured as CEO of the Year for his transformative leadership in the banking sector.

The awards ceremony is a key feature of the Africa CEO Forum, which gathers more than 2,000 business leaders, investors, and policymakers to discuss strategies for driving economic transformation across the continent.

The next edition of the annual Africa CEO Forum will be held in Kigali.

The deal, valued at $96 billion according to the White House, includes Boeing’s 777X and 787 Dreamliner models powered by GE Aerospace engines.

The agreement was formalised at a signing ceremony in Doha attended by Trump, Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani, Boeing CEO Kelly Ortberg, and Qatar Airways CEO Badr Mohammed Al-Meer.

Trump, who is on a regional tour of Gulf states, hailed the deal as “the largest jet order in Boeing’s history.”

While the exact breakdown of the aircraft types and the number of firm versus optional orders remains unclear, the deal represents a significant commitment from Qatar Airways, which already operates one of the world’s largest fleets of Boeing widebody jets.

Qatar Airways has continued to expand its global footprint in recent years. In October 2021, the airline signed a codeshare agreement with RwandAir, deepening its presence in Africa and strengthening connectivity between Kigali and global destinations.

The move is also a blow to rival Airbus, whose A350 model has struggled in the Gulf’s hot climate, with ongoing maintenance issues related to Rolls-Royce engines.

Qatar opted for GE Aerospace’s GEnx engines for the 787s and the GE9X for the 777X, the only engine currently certified for that aircraft. GE Aerospace described the deal as its largest-ever widebody engine agreement.

The timing of the announcement highlights the strategic importance of the deal for both Trump and Boeing. For Trump, it adds to a series of economic announcements linked to his Gulf tour, which also included trade agreements with Saudi Arabia.

For Boeing, the order comes at a time when the company is working to recover from significant setbacks, including manufacturing delays, safety concerns, and a lengthy strike by workers that affected output.

The Qatar Airways deal is also expected to support an estimated 154,000 U.S. jobs annually throughout the production cycle, according to the White House.