Rwanda and South Korea officials inked a US$1 billion framework arrangement aimed at providing concessional funding for a range of projects in key sectors of the Rwandan economy including transportation, healthcare, and education, on Friday, July 5,

According to a statement from the Ministry of Finance and Economic Planning, the money will be channeled through the Economic Cooperation Development Fund (ECDF), a Korean agency that promotes economic cooperation between the Asian nation and developing countries.

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The new framework arrangement replaces the previous one signed in 2022, which had an allocation of US$500 million for the period 2022-2026.

Covering the years 2024 to 2028, the new four-year agreement will be aligned with Rwanda's second National Strategy for Transformation (NST2).

"Rwanda-Korea current bilateral cooperation is aligned to our National Strategy for Transformation and plays a pivotal role in enhancing Rwanda's human capital for the 21st century, transforming our agricultural sector, establishing a foundation for ICT-led governance, and nurturing a thriving business environment,” said Yusuf Murangwa, the Minister of Finance and Economic Planning.

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The Ambassador of South Korea to Rwanda, Jeong Woo Jin, said that he believes the deal will serve as a robust foundation to elevate the relations between the two countries to the next level after the inaugural 2024 Korea-Africa summit which President Paul Kagame attended.

"I believe there is more room to cooperate in bilateral relations, especially based on the continuous cooperation in Agriculture, ICT, Education, Health and Infrastructure,” he noted.

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Rwanda and South Korea have a longstanding history of bilateral and multilateral development cooperation dating back to 1963, with key areas of collaboration including education and capacity building, rural development, healthcare, energy, agriculture, and information and communications technology.