The Government of Rwanda has signed two new financing agreements worth US $45 million with the Arab Bank for Economic Development in Africa (BADEA) to strengthen water security and support private sector development.
The first agreement, a US $20 million (approximately Rwf 29 billion) loan, will finance the expansion of the Karenge Water Project’s transmission and distribution systems.
The project aims to increase access to safe and reliable water for communities in Kigali and Rwamagana districts, while enhancing the water sector’s resilience to climate change.
It forms part of Rwanda’s national goal to achieve universal access to clean water and sanitation by 2029.
The second financing agreement establishes a US$25 million line of credit to the Development Bank of Rwanda (BRD).
This facility is designed to promote private sector growth, particularly among Small and Medium Enterprises (SMEs), which are key to driving job creation and sustainable economic development.
“These agreements reinforce the five-decade partnership between Rwanda and BADEA, a collaboration that has been instrumental in driving development across our economy,” said Godfrey Kabera, Minister of State for National Treasury.
“We look forward to scaling up this partnership through new approaches and highly scalable funding for strategic projects.”
Dr. Fahad Al-Dossari, Chairman of BADEA’s Board of Directors, hailed the signing as “a new milestone” in the institution’s partnership with Rwanda.
“We are pleased to support Rwanda’s sustainable development goals with $20 million to enhance clean water access and a further $25 million to accelerate the private sector’s role as an engine of growth and job creation,” he said.
Rwanda’s cooperation with BADEA dates back to 1974, with cumulative financing now exceeding US $300 million.
The funding has supported key sectors including agriculture, energy, water, and transport, all central to achieving the objectives of Rwanda’s National Strategy for Transformation (NST2) and Vision 2050.
The latest agreements further underscore Rwanda’s commitment to sustainable development and inclusive growth, anchored in strong international partnerships.
