The Government of Rwanda, through the Ministry of Finance, has signed a financing agreement with the United States Agency for International Development (USAID) worth Rwf605 billion ($643.8 million) to support Rwanda’s development efforts in the next five years.
During the signing ceremony on Thursday, July 2, $48.6 million was handed over to the Minister of Finance, Uziel Ndagijimana by USAID’s Mission Director Leslie Marbury.
Minister Ndagijimana told the media that the grant will facilitate the government to implement major development objectives in the National Strategy for Transformation (NST1) that include health and education.
In partnership and alignment with the Government of Rwanda development priorities, the agreement directly links to the three pillars of Rwanda’s National Strategy for Transformation: Economic Transformation, Social Transformation, and Transformational Governance.
An integral part of the funding, as well as USAID’s long standing support to Rwanda, is to help combat COVID-19 and support the economy from negative effects caused by the pandemic-related disruptions.
In his remarks, Minster Ndagijimana said that the grant is very relevant amid Rwanda’s fight against Covid-19 pandemic.
"This support to Rwanda by the USAID will prioritize health, education, private sector growth and governance which are key areas of our National Strategy for Transformation. It is much relevant and equally important in implementation of our COVID-19 Socio-Economic Recovery Plan,” Minster Ndagijimana said.
USAID’s Mission Director Leslie Marbury echoed Minister Ndagijimana’s observation and appreciated good relations between Rwanda and USAID.
"The United States maintains its commitment to a strong and mutually beneficial partnership with Rwanda as it works to achieve its own goals, we look forward to stronger ties,” Leslie Marbury said.
Health and private sector as focal areas of investment
As the grant comes amid Covid-19 pandemic which has substantially affected businesses, Ndagijimana said that USD 21.1 million will be invested in the private sector.
He also said that $ 22.4 million will be invested in the health sector and $ 2.8 million will be used to improve the quality of education.
"These are the prioritized areas but the money will also be used to improve socioeconomic standards in different ways,” the Minster explained.
Rwanda and USAID long-term partnership lies in different projects that are worth $ 700 million. The goal of the partnership is to strengthen human capital, foster a robust private sector, and build accountable institutions.