The Government of Rwanda and the international non-profit organization GiveDirectly have signed a five-year agreement worth $150 million aimed at lifting citizens out of poverty.
This five-year partnership will establish a fund supported by multiple development partners, designed to accelerate poverty reduction through district-level development projects and direct cash transfers to vulnerable households.
The project is expected to benefit residents in five districts, providing cash assistance with the goal of lifting approximately 25% of participants out of poverty under Rwanda’s second phase of the National Strategy for Transformation (NST2).
GiveDirectly is an established international non-profit that has long collaborated with Rwanda, focusing on supporting households living in extreme poverty through direct cash transfers.
Since 2016, GiveDirectly has worked with the Rwandan government, particularly through the Ministry of Local Government, to distribute financial support to vulnerable families in districts including Gasabo, Gicumbi, Gisagara, Kayonza, Ngoma, Ngororero, Nyamagabe, and Rusizi.
A unique feature of the program is that beneficiaries have the freedom to decide how to use the cash transfers, which are delivered directly to their Mobile Money accounts.
Assessments conducted in Gisagara, Ngororero, and Nyamagabe show that most recipients invest the funds in productive assets and income-generating activities. Data indicates that 31% of the support was used for renovating or building homes, while 43% was invested in agriculture, livestock, savings, small businesses, education, health, and other ventures.
GiveDirectly operates across East Africa, including Uganda, Rwanda, and Kenya, supporting families in extreme poverty with cash grants that help them improve their livelihoods.
Evidence also shows that providing direct cash support accelerates local development across sectors, including food security, access to healthcare insurance, electricity connections for households, and particularly in generating profitable employment opportunities.
