Rwanda plans to set up three new technical vocational education and training (TVET) centres of excellence, and expand five existing ones thanks to a more than $110.8 million (approx. Rwf145 billion) loan from Korea Export and Import Bank (Korea EXIM Bank), The New Times understands.

Last week, Parliament passed the law approving the ratification of the loan agreement between the Government of Rwanda and Korea EXIM Bank relating to the loan for the establishment of the centers of excellence for TVET in the country.

The financing agreement was signed in Seoul, South Korea, on June 5.

TVET centres of excellence are equipped with modern facilities and adept staff to produce a skilled future workforce.

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Richard Tusabe, the Minister of State in charge of the National Treasury at the Ministry of Finance and Economic Planning (MINECOIN), said that the loan will be repaid within 25 years, which starts being counted after a grace period of 15 years and a half, at an interest rate of 0.01 per cent.

Tusabe indicated that over the last decade, the government has put effort in promoting TVET as well as science with the aim of preparing a competent and highly qualified workforce.

The credit from Korea Exim Bank, he said, is meant to support the government’s effort to that end.

The objectives of the project are to enhance the quality of education in TVET establishments and increase the number of students through the construction of TVET centres of excellence, and expanding the labour market through the development of factories that add value to products, and supporting the growth of factories based on advanced skills, Tusabe said.

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Tusabe observed that the project also seeks to increase the capacity of Rwandan firms to be competitive on the labour market through building an economy based on various sectors and scaling up the capacity of teachers and workers, as well as improving the current curricula through encouraging special teaching programmes.

Tusabe pointed out that the project consists of three components, including establishing three new TVET centres of excellence in the districts of Karongi, Nyagatare, and Rubavu, and expanding five existing TVET centres of excellence in Bukure [in Gicumbi], Kabona [in Burera], Kabutare [in Huye], Nyamata [in Bugesera], and Runda [in Kamonyi].

The second component, he said, consists of providing academic equipment to enhance teaching, while the third is about providing consultancy services that help in supervision of construction works, preparing special and advanced teaching methodologies, among others.

He indicated that the project will contribute to improving hands-on skills for graduates through addressing the lack of TVET consumables – materials needed for students’ practical learning.

He said that, under the agreement, Korean companies will work in areas where Rwandan firms do not have expertise.