The Government of Rwanda secured an additional Euro 15 million (about Rwf 22 billion) grant from the German Development Bank (KfW) on October 8.

The funding will be directed toward the inclusive Pro-Poor Basket Fund, an initiative aimed at improving essential local infrastructure in Rwanda’s rural districts to enhance the quality of life for citizens.

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The agreement signed at the Ministry of Finance and Economic Planning (MINECOFIN) builds on Germany’s initial grant of Euros 16 million, which helped establish the Pro-Poor Basket Fund with partners that include French Development Agency (AFD) and LuxDev, acting on behalf of the Government of Luxembourg.

The Inclusive Pro-Poor Basket, managed by Local Administrative Entities Development Agency (LODA), focuses on addressing essential needs in Rwanda’s rural districts. The fund is primarily aimed at improving access to public services, rehabilitating infrastructure, creating employment opportunities, and enhancing resilience to climate change.

With a key priority of ensuring that women and vulnerable communities benefit significantly.

"The Pro-Poor Basket Fund projects, launched in January 2024 across 16 rural districts, aim to help communities lift themselves out of poverty by providing critical infrastructure such as water access, roads, bridges, agricultural support, upgraded health centers, and expanded classrooms to improve education,” said Claudine Nyinawagaga, the Director General of LODA.

"Thanks to the success of the first phase, the German cooperation, our partner in this program, expressed satisfaction with the outcomes and has agreed to release the second instalment of funds to build on the progress already achieved."

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Some of the key accomplishments in the first phase include providing water to residents in the Rugendabari and Kinoni sectors of Burera District, where communities had long been without access. In Gakenke District, Janja Health Center was expanded, while in Nyanza District, the number of classrooms increased to enhance the learning environment, according to the ministry of finance.

"All these projects were designed based on the needs expressed by the communities during the planning phase. These efforts are in line with the priorities of the National Strategy for Transformation (NST2). The Pro-Poor Basket is an efficient and effective tool that enhances service delivery, reduces poverty, and supports economic development at the local level,” sais Mutesi Rusagara, the state minister in charge of resource mobilization and public investment.

Eligible districts set to benefit from the Pro-Poor Basket Fund are Gisagara, Nyanza, Ngoma, Nyaruguru, Gatsibo, Nyamagabe, Ruhango, Kamonyi, Rulindo, Gakenke, Burera, Gicumbi, Rutsiro, Nyabihu, Ngororero, and Nyamasheke.

Simon Koppers, an official from BMZ, highlighted the long-standing partnership between Rwanda and Germany in fostering development, particularly in the areas of public services and infrastructure for vulnerable populations.

He said the additional support for the Pro-Poor Basket demonstrates Germany’s continued commitment to Rwanda’s socio-economic development.