Rwanda’s only international government bond experienced its most significant decline since August 2022 on Wednesday, amid escalating concerns regarding the conflict in the neighbouring Democratic Republic of the Congo, where Rwanda is known to support the M23 rebels.
The bond, maturing in 2031, decreased by 1.7 cents, bringing its value down to 79 cents, marking its lowest point since January 2024.
Recently, the M23 rebels captured Goma, the largest city in eastern Congo, and the fighting has since extended to other regions as the group seeks to expand its territorial control.
On Tuesday, the United Nations human rights office accused the M23 rebels of executing children in eastern Congo during their offensive.
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In response, the Rwandan government in Kigali announced the suspension of development cooperation with Belgium, alleging that Brussels is collaborating with the Congo to undermine Rwanda’s access to development financing from multilateral institutions.
The M23’s recent advances represent the most serious escalation in the protracted conflict in eastern Congo over the past decade, which has its roots in the aftermath of Rwanda’s 1994 genocide and the competition for control over Congo’s extensive mineral resources.
Rwanda has denied accusations from Congo, the United Nations, and Western nations regarding its provision of arms and troops to the M23. The Rwandan government asserts that it is merely defending itself against threats posed by a Hutu militia, which it claims is allied with the Congolese military.
According to credit ratings agency S&P, the ongoing conflict poses risks of increasing Rwanda’s debt costs and weakening its currency.
