KIGALI - The World Bank and the Government of Rwanda yesterday, signed two IDA grant agreements worth US$41 million (Frw22.16 billion).

James Musoni, Minister of Finance and Economic Planning and Victoria Kwakwa , the World Bank Country Manager for Rwanda signed on behalf of the Rwanda Government and the World Bank respectively.

The grants include US$35 million for the Rwanda Second Rural Sector Support Project (RSSP2).

It will help to support the intensification of agricultural systems and commercialisation of agricultural products.

It also aims at revitalising the rural economy and improving the quality of life of the rural poor through the transfer of technical and financial resources for sustainable rural development. RSSP2 is scheduled to run for four years.

The second grant of US$6 million is an additional financing grant for the Rwanda Competitiveness and Enterprise Development Project (CEDP).

The Grant, in support of Rwanda’s Financial Sector Development Programme, builds on the achievements of the original International Development Association (IDA) credit of US$40.8 million, which was approved in 2001. 

"As we all know, the financial sector is an important part of the EDPRS. Without a modern financial sector that operates efficiently and provides access to financial resources to people that demand financial services, it would be difficult to get the rapid growth of the economy that the government is trying to achieve,” said Kwakwa.

According to Kwakwa the government has a very solid private Sector Development Plan and that after various reviews that have been carried out, it meets international standards.

Ends