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June 30, 2023

Rwanda presents the national budget for financial year 2023/24

  • The Rwanda 2023/24 national budget focuses on economic recovery from the COVID-19 pandemic.
  • It identifies several key priority sectors, including healthcare, agriculture and education.
  • The budget also proposes several tax changes to promote the local industry and manufacturing activities.

Executive summary

On 15 June 2023, the Minister of Finance and Economic Planning presented the Rwanda National Budget for the financial year 2023/2024, which focuses on "Accelerating economic recovery, climate change mitigation/adaptation and enhancing productive sectors for improved livelihood."

The key focus of the national budget is economic recovery from the COVID-19 pandemic as well as safeguarding lives. It also seeks to implement measures that are aligned with mitigating and adapting to climate change while conserving the environment and enhancing productive sectors for improved livelihood.

Key priorities for the 2023/24 national budget include: strengthening the health system; increasing agriculture and livestock productivity; scaling up social protection coverage; improving the quality of education; creating employment opportunities through investment in public works; and providing support to micro, small, medium and large enterprises affected by COVID-19 through the economic recovery fund.

Other interventions will include: providing support for "Made in Rwanda" products; promoting digital technologies to improve service delivery; improving access to quality education; eradicating malnutrition and stunting; and strengthening disaster preparedness and management.

National budget preparation process

Rwanda's planning and budget process is coordinated at the central and local government levels. The process entails several steps, including public participation.

The process entails the following stages:

  • Identifying national priorities (October to December)
  • Preparing a national medium-term expenditure framework (January and February)
  • Preparing an agency medium-term expenditure framework (MTEF) and budget (February and March)
  • Preparing and submitting the Finance Bill to Parliament (March to June)

Key priorities in 2023/24 fiscal year budget

Key expenditure priorities and resources allocations are set in line with the National Strategy for Transformation (NST1) goals and the economic recovery policies.

The budget allocations in 2023/24 fiscal year were based on the key pillars of NST1, namely:

1. Economic transformation — to accelerate inclusive economic growth and development founded in the private sector, knowledge-based economy and Rwanda's natural resources. The areas under this pillar include:

  • Enhancing agriculture productivity
  • Improving private sector development and youth employment
  • Protecting the environment and natural resources
  • Strengthening the energy sector
  • Promoting urbanization
  • Accelerating transport projects
  • Enhancing information communication and technology

2. Social transformation — to develop Rwandans into a capable and skilled work force with high-quality standards of living and a stable and secure society. The areas under this pillar include:

  • Water and sanitation
  • High-quality, accessible healthcare
  • Improved education quality
  • Social protection interventions
  • Malnutrition interventions
  • Family and gender promotion
  • Sports and culture
  • Disaster management

3. Transformational governance — to consolidate good governance and justice as building blocks for equitable and sustainable national development. The areas under this pillar include:

  • Governance and decentralization
  • Justice, reconciliation, and law and order
  • Public finance management
  • Financial sector development
  • Foreign affairs and international cooperation

Budget summary




Change (%)

Total budget (FRW)

5,030 billion

4,764.8 billion


Total budget (USD)

4.39 billion

4.16 billion

Financing of the budget


Amount (FRW)

Amount (USD)

% of the budget

Domestic resources

3,152.8 billion

2.75 billion


External grants

652.1 billion

0.57 billion


External loans

1,225.1 billion

1.07 billion



5,030 billion

4.39 billion


Budget expenditure


Amount (FRW)

Amount (USD)

% of the budget

Recurrent expenditure

3,135.3 billion

2.74 billion


Capital expenditure

1,894.7 billion

1.65 billion



5,030 billion

4.39 billion


Budget allocation under NST 1 pillars

NST-1 pillar

Amount (FRW)

Amount (USD)

% of the Budget

Economic transformation

2,811.3 billion

2.45 billion


Social transformation

1,528.6 billion

1.33 billion

30.4 %

Transformational governance

690.1 billion

0.60 billion



5,030 billion

4.39 billion


Tax policy reforms

The tax policy changes anticipated in FY 2023/24 are expected to achieve the following objectives:

  • Sustain the economic recovery path
  • Protect local producers
  • Harmonize taxation with other partner states in the region
  • Support the entire population to access basic needs
  • Promote the "Made in Rwanda" policy
  • Promote a cashless economy
  • Fast-track the economic recovery in the aftermath of shocks
  • Encourage a green economy

Anticipated policy changes include:

  • Extended incentives on electric and hybrid vehicles and electric motorcycles to allow duty-free importation
  • Extended exemption for construction materials under "Manufacture and Build to Recover Program" (MBRP)
  • Extended exemption for luxury cars needed in the tourism sector for cars above USD 60,000 where anything above USD 60,000 will not attract any tax; imported cars will pay a 25% Common External Tariff import duty and all other relevant taxes up to the CIF value of USD 60,000
  • Tax incentives for some strategic items by facilitating importation through the reduction of the import duty to a lesser rate or at a rate of zero


    Current import duty

    Proposed import duty


    75% or USD 345/MT

    45% or USD 345/MT


    The higher of 100% or 460 USD/MT

    25% for 70,000 MT

    Goods imported for the use by Armed Forces Shop (AFOS)



    Road Tractors for Semi Trailers



    Motor vehicles for the transport of goods (gross weight between 5-20 tons)



    Motor vehicles for the transport of goods (gross weight more than 20 tons)



    Buses for transportation of more than 25 persons



    Buses for transportation of 50 persons or more



    Capital machinery and raw materials used in manufacturing textile garments and footwear

    10% or 25%


    Telecommunication equipment



    A list of raw materials used in industries

    10% or 25%


    Electronic transaction devices (smart cards, point of sale, cash registers and

    cashless machines)



    Cooking oil



    Second-hand clothes

    The higher of 35% or 0.4 USD/Kg

    2.5 USD/Kg

    Second-hand shoes

    The higher of 35% or 0.4 USD/Kg

    5 USD/Kg

  • Increased import duties on the importation of some products to protect local producers.

    The import duty for the below items will be increased from 25% to 35%:
    • Doors, windows, and their frames
    • Steel tubes
    • Wheelbarrows
    • Handbags with outer surface of sheeting of plastics or of textile material


For additional information with respect this Alert, please contact the following:

Ernst & Young (Kenya), Nairobi

Ernst & Young Rwanda Limited, Kigali

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor


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