The report found out that Rwanda’s public debt is sustainable as supported by the baseline indicators and will continue to enjoy the gains of debt relief if Rwanda’s good economic performance
continues to improve hinged on strong policies and good governance. It was found out that the World Bank and IMF debt relief of HIPC and MDRI initiatives were beneficial in reducing Rwanda’s debt to sustainable levels.
However there is increase in domestic debt levels, which resonates with the 2008 debt long-term goal to reduce dependency on foreign financing for its development. It was also found out that the government has shifted its share of external public debt from concessional to commercial lending and the issue of the sovereign Eurobond. Rwanda’s public debt should not constitute a major obstacle to its economic development. It is important that sustainable level of debt be maintained, where existing debt can be serviced comfortably without jeopardizing the country’s growth prospects. However, continued concessional financing by donors will still be needed, at least in the medium term and a significant rise in export earnings is vital to avoid returning to the pre-HIPC levels.
Parliamentary oversight consists of reviewing and supervising the excise of executive authority. It is a measure for holding the executive accountable for its actions and for ensuring that it implements policies in an effective manner. Most critically, parliamentary oversight helps ensure transparency and openness of the Executive’s setting of priorities and management of public funds. Our analysis reveals that efforts have been made to strengthen their public finance management and this has resulted in the country maintaining sustainable debt levels. Parliamentary oversight is critical to ensure national ownership of development programs. Governance, including the management of public resources remains insufficient due to lack of sound institutions and competent personnel. Rather than develop sound systems themselves, Rwanda past governments continued to rely on foreign technical assistance that are both costly, largely indifferent to domestic long term needs and failing to build local capacities. Although great progress has been made on this front, it still represents a significant hindrance to effective governance.