The two countries signed a funding agreement on October 8, 2024, with the German Development Bank KfW representing the German Government during the signing ceremony held at the Ministry of Finance and Economic Planning (MINECOFIN) in Kigali.
In a statement, MINECOFIN stated that the funds will be channelled into the Pro-Poor Infrastructure Basket, aimed at supporting rural districts by financing essential local infrastructure to improve the living conditions of citizens.
The new funding builds on Germany's initial contribution of €16 million to launch the basket and complements contributions from other development partners, such as AFD (France) and LuxDev on behalf of the Government of Luxembourg.
The Inclusive Pro-Poor Basket, implemented by the Local Administrative Entities Development Agency (LODA), focuses on improving access to basic public services, rehabilitating infrastructure, providing employment opportunities, improving climate resilience, and making a positive impact on women.
The districts earmarked to benefit from the initiative include Gisagara, Nyanza, Ngoma, Nyaruguru, Gatsibo, Nyamagabe, Ruhango, Kamonyi, Rulindo, Gakenke, Burera, Gicumbi, Rutsiro, Nyabihu, Ngororero, and Nyamasheke.
Minister of State in Charge of Public Investments and Resource Mobilization, Mutesi Rusagara, who was among high-ranking officials who attended the signing ceremony, welcomed the additional funding, expressing optimism that it will enable LODA to support local governments in investing more effectively in local economic development projects.
"The Government of Rwanda has set ambitious targets in NST2 to enhance service delivery, reduce poverty, and promote economic growth. The Pro-Poor Basket is an efficient and effective tool to contribute to these goals and, thus, to the implementation of NST2," she stated.
LODA's Director General, Claudine Nyinawagaga, highlighted the long-standing working relationship with KfW, noting that setting up and implementing the Pro-Poor Basket in close cooperation with KfW, AFD, and LuxDev marks an important milestone in achieving the socio-economic development of Rwanda's rural population.
Dr. Simon Koppers, Head of the Central Africa Division at the German Federal Ministry of Economic Cooperation and Development (BMZ), emphasized that Rwandan-German development cooperation has long focused on improving public services and infrastructure for the poor and vulnerable.
He noted that the additional funding for the Pro-Poor Basket is a testament to the enduring strong ties between the two countries.
Wycliffe Nyamasege
