The Government and the European Union yesterday signed a financing agreement worth €20 million (about Rwf17.4 billion) to support accountability of public funds.

The grant is part of the EU’s €460 million package of support the Rwandan government signed with European Commission in Brussels in September, 2014.

It is also part of the budget support to enhance economic governance through financial management and budget transparency, the Head of the EU Delegation to Rwanda, Amb. Michael Ryan said.

The grant will specifically support efforts to improve the governance of public funds by strengthening the organisational and operational capacity on public finance, Claver Gatete, the Minister for Finance and Economic Planning, said.

He added that the grant will boost revenue mobilisation and audit in three key institutions, including the Ministry of Finance and Economic Planning, Office of the Auditor General and the Rwandan Revenue Authority.

"Accountable economic governance is one of the top priorities for the government The funds will, therefore, boost transparency, efficiency, effective and accountable use of public resources as a basis for economic development and poverty eradication through improved service delivery,” Gatete noted.

The EU is equally expected to improve evidence-based policy-making and monitoring in Rwanda by enhancing the capacity of the National Institute of Statistics of Rwanda (NISR) and the overall national statistical system (NSS) to collect and process good-quality and timely statistics that can inform decision-makers during policy and strategy formulation and evaluation, according to Yusuf Murangwa, the NISR director general.

Meanwhile, the Auditor General, Obadia Biraro, said enhancing economic governance, accountability and transparency will help make Rwanda’s business environment more sustainable.

"Government is the biggest spender and employer, therefore, emphasising proper accountability is critical for economic sustainability of the country. We will, therefore, use the funds to boost public finance management programmes and ensure that there is value for every penny government spends,” Biraro said.

Under the donor Division of Labour, the EU is active in the agriculture sector, including feeder roads, energy and decentralisation and governance and provides support to the PFM basket fund.

The EU has since signed three similar agreements since the year began to support Rwanda on its journey to achieving economic excellence.

Early this year, both government and the EU, signed a financing agreement worth €177 million (about Rwf157 billion) to support the energy sector for the next five years.

The money is helping Rwanda to improve the supply, transmission and distribution of electricity in the country.

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