Rwanda’s bigger budget moves to secure HIV drugs, modernize services as foreign aid shrinks

By The Inspirer.

Rwanda’s national budget has crossed the Rwf7 trillion mark for the first time in history, with part of the extra spending earmarked for crucial healthcare programmes like HIV treatment — a move analysts say reflects the country’s growing push to plug funding gaps left by shrinking foreign aid.

The law determining state finances for the 2025/2026 fiscal year, published in the Official Gazette on July 1, sets Rwanda’s spending at over Rwf7 trillion — a dramatic 21 percent increase from last year’s Rwf5.8 trillion budget. This is about 37 times larger than the Rwf187.5 billion budget the country operated with in 2001.

Among key priorities, the government plans to spend at least Rwf2.8 billion on antiretroviral (ARV) drugs for people living with HIV. This comes as Rwanda braces for possible disruptions to global health aid flows, after the U.S. shut down its biggest development agency, USAID, which has historically funded major HIV, malaria, and reproductive health initiatives in Africa.

In May, Minister of Health Dr. Sabin Nsanzimana confirmed the government was working to cover health programme shortfalls, noting that local financing for life-saving drugs like ARVs would become increasingly vital.

Rwanda’s new spending plan also highlights broader efforts to build resilient public services: from training teachers in English proficiency with a budget of Rwf6.7 billion, to investing over Rwf16 billion in modern medical equipment through direct procurement — a cost-cutting strategy that, according to health officials, has already halved prices of key diagnostic tools like CT scanners.

The budget also includes a major boost for education, with Rwf17.7 billion for student loans and over Rwf9 billion to equip more than 300 schools with laptops. Meanwhile, the agricultural sector will see over Rwf55 billion channelled into seed and fertiliser subsidies to keep food security on track.

Big infrastructure upgrades — like the Rwf19.3 billion facelift for Kigali’s Nyabugogo bus terminal and the long-awaited four-lane expansion of the Kigali–Muhanga road — round out a spending plan that officials say is designed to match Rwanda’s long-term development ambitions under Vision 2050.

But it is the government’s resolve to maintain HIV treatment services — even as foreign donors scale back — that is likely to draw the most attention in the months ahead. Nearly 220,000 people in Rwanda depend on ARVs to stay healthy and prevent transmission, according to the Ministry of Health.

“Prioritising our own funding for ARVs is a clear signal that Rwanda won’t gamble with lives,” said Dr. Yvan Butera, State Minister for Health, who has previously defended the government’s direct-purchase strategy for medical supplies. “This is about resilience.”

As the budget takes effect, citizens and development partners alike will be watching closely to see if the country’s growing financial independence can sustain essential programmes that millions depend on — proof, some say, that Rwanda’s rising spending is more than just big numbers on paper.

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