The Government of Rwanda has signed two financing agreements with the Arab Bank for Economic Development in Africa (BADEA) worth a total of US $45 million, aimed at strengthening water security and accelerating private sector development.
The first agreement is a US $20 million (approximately Frw 29 billion) loan to expand the Karenge Water Project transmission and distribution systems.
The project will enhance safe water supply for households in Kigali and Rwamagana Districts, supporting Rwanda’s ambition to achieve 100% access to clean water and sanitation by 2029. It will also strengthen climate resilience and improve the quality of life for citizens.
The second agreement establishes a US $25 million line of credit to the Development Bank of Rwanda (BRD), designed to stimulate growth in the private sector, particularly among Small and Medium Enterprises (SMEs), thereby creating more jobs and boosting economic growth.
Godfrey Kabera, Minister of State for National Treasury said “These agreements reinforce the five-decade partnership between Rwanda and BADEA, a collaboration that has been instrumental in driving development across our economy.”
He added “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, noted: “Today marks a new milestone in our long-standing partnership.”
He added: “We are pleased to support Rwanda’s sustainable development goals with $20 million to enhance clean water access and $25 million to strengthen the private sector’s role in driving growth and job creation.”
Rwanda’s cooperation with BADEA began in 1974. Today, BADEA’s portfolio in Rwanda exceeds US $300 million, financing key sectors such as agriculture, energy, water, and transport all aligned with Rwanda’s National Strategy for Transformation (NST2) and Vision 2050.
