The Government of Rwanda and the Republic of Korea yesterday signed an agreement for a loan facility worth $51 million (approximately Rwf36 billion).

The 40-year concessional loan is from Economic Development Cooperation Fund (EDCF) and will be channeled in developing University of Rwanda’s infrastructure.

The loan has a grace period of 15 years and will attract an interest rate of 0.01 per cent.

The loan facility will finance four of 16 components of the University, including constructing the University’s headquarters and an Information Communication Technology (ICT) centre in Kigali, the school of Mining and Geology at the College of Science and Technology (former KIST) and building capacity for technicians, according to Claver Gatete, the Minister for Finance and Economic Planning.

The minister stressed the importance of education in achieving sustainable economic growth.

"Rwanda aims to become a knowledge-based economy in the near future. We believe it’s through education that we can truly transform the lives of Rwandans,” Gatete said.

Prof. Silas Lwakabamba, the Minister for Education, said the money will make a difference in the sector, especially higher education.

"We have been sending our students abroad to acquire knowledge and skills in geology and mining. However, the establishment of the mining school and a more coordinated ICT system will help reduce the cost and strengthen our capacities in the education sector,” Lwakabamba told The New Times.

Hwang Soon-taik, the Korean ambassador to Rwanda, said supporting the education sector will lay a strong foundation for the country’s economic development.

"This is a historic moment for both Rwanda and South Korea. We are looking at Rwanda as a good partner in economic development.”

The Republic of Korea has so far committed more than $12 million in grants to Rwanda since 2011, Soon-taik, added.

 The Republic of Korea supports Rwanda through its Korea International Cooperation Agency (Koica) which provides grants and technical assistance to Rwanda’s development projects since 2006.

Korea’s intervention is in the areas of education, agriculture and ICT, among others.