Rwanda, Germany signed $93m agreement on ICT, green investment and SMEs support

The Rwandan government and the Federal Republic of Germany have signed two deals worth €78 million (US$93.4 million) to fund crucial areas vital to Rwanda’s development goals.

The funding and strategic cooperation arrangement is the product of the two governments’ 2020 Inter-Governmental Negotiations.

The grant agreement will provide US$70.6 million to the KFW Development Bank to fund a variety of programs, including technical and vocational training, the promotion of export-oriented SMEs with the support of the BRD’s Export Credit Facility in Rwanda, green investment promotion, and ICT support.

The remaining $22.7 million would go to GIZ to promote decentralization and fair government, as well as the elimination of sexual and gender-based harassment.

Dr. Uzziel Ndagijimana, Rwanda’s Minister of Finance and Economic Planning, said after the signing ceremony that the financial assistance provided to Rwanda would fund core areas that are crucial to the country’s development goals.

“This funding comes at a critical moment, given COVID-19’s effect on our social and economic growth. We are looking forward to bolstering these critical regions, which are in line with our National Transformation Strategy. We would like to express our gratitude to Germany for its strong cooperation and solidarity, especially during the COVID-19 pandemic,” Minister Ndagijimana said.

“These Agreements highlight our two countries’ long-standing and effective relationship focused on friendship and mutual confidence. In order to achieve the SDGs and leaving no one behind, Germany is committed to assisting Rwanda in its Economic Recovery Process and the adoption of NST 1,” the German Ambassador to Rwanda Dr. Thomas Kurz stressed.

Education (including TVET), Decentralization and Good Governance, Private Sector Growth and Youth, Public Financial Management (PFM), and Financial Development are all areas where Germany’s development cooperation program can be involved. Germany also funds regional projects including the Center of Excellence for Health, Investment Climate Improvement, Microfinance Sector-MIFSSA, ICGLR, and Energy.