BUSINESS | POLICY
The United States has imposed sanctions on Rwanda’s Ministry of Defense and Zigama Credit and Savings Society, accusing them of supporting the M23 rebel group in eastern Democratic Republic of the Congo, in a move that increases pressure on Kigali to meet its commitments under a U.S.-brokered peace agreement.
The U.S. Treasury Department’s Office of Foreign Assets Control announced the actions Wednesday, targeting Rwanda’s defense establishment and a financial institution it said facilitated military procurement and financial transactions for Rwanda’s security forces and M23.
“Today, the United States makes good on President Trump’s promise to hold Rwanda accountable for its commitments under the Washington Accords for Peace and Prosperity,” Treasury Secretary Scott Bessent said. “Rwanda must halt its support for M23 and withdraw its troops from eastern DRC.”
The sanctions come as the Trump Administration moves to enforce the peace agreement signed by DRC President Felix Tshisekedi and Rwandan President Paul Kagame on December 4, 2025. The peace accord provides a path to end the conflict in eastern Congo while establishing a framework for regional trade, investment, and greater transparency in critical minerals supply chains.
The Treasury Department said Rwanda’s military has deployed thousands of troops in North and South Kivu provinces, providing M23 with weapons, supplies, logistical support and training. The group captured the provincial capitals of Goma and Bukavu in early 2025 and has taken control of mineral-producing areas, including gold mines in South Kivu and the Rubaya coltan mining area in North Kivu.
Washington also accused Zigama, which operates on behalf of Rwanda’s security services, of facilitating payments for military equipment and training, as well as financial transactions worth tens of millions of dollars for M23 and its political wing, the Congo River Alliance.
The Treasury said a Zigama branch also helped transport gold from territory controlled by M23 to Rwanda’s capital, Kigali. It alleged that minerals extracted from rebel-held areas enter Rwandan supply chains, raising concerns about the origin of exports and the role of mineral revenues in sustaining the conflict.
The sanctions block any property or financial interests belonging to the designated entities that fall under U.S. jurisdiction. They also generally prohibit U.S. persons from conducting transactions with them without authorization. The restrictions can extend to entities owned 50% or more by sanctioned parties and expose financial institutions and other businesses to sanctions risks if they engage in prohibited dealings.
The Treasury’s announcement follows the recent formation of the Front for the Refoundation of the Nation, identified as the successor to the Congo River Alliance.
The Trump Administration said its sanctions are intended to change behavior rather than punish for their own sake, leaving open the possibility of removal from the sanctions list if the legal requirements are met.
However, the timing could complicate Rwanda’s ambitions to attract major international investment, including a potential Formula One race deal recently signed, but they do not automatically prevent foreign companies from investing in Rwanda or organizing sporting events there.
Rwanda has sought to position itself as a hub for tourism, conferences, sports and international business, matters, the U.S. sanctions now put pressure on the government to demonstrate that it is honoring the Washington Accords with the DRC at a time when it is also seeking to attract global partners and capital.
