Rwanda has received €38.5m grant from a German development bank, Kreditanstalt für Wiederaufbau (KfW) or Reconstruction Credit Institute.

The grant is the outcome of the two countries’ September 2009 Joint Permanent Commission (JPC) in Kigali when Germany increased its commitments for development cooperation to Rwanda by almost 60 percent.

Last year, Germany revealed new commitments to Rwanda worth €38.5 million for the period of 2009-2010, with €26.5 million of the total going into financial cooperation programs while €12 million was for technical cooperation.

Previously, Rwanda had wanted Germany to trim down on technical assistance and channel more funds into general budget support.

During the signing ceremony at the foreign ministry (Minaffet) yesterday, Foreign Minister Louise Mushikiwabo expressed appreciation for the German support and pledged the government’s commitment in putting the money "to good use.”

"It is a testimony to the strong partnership and cooperation based on mutual respect and mutual benefit,” Mushikiwabo said.

The German Ambassador, Elmar Timpe, assured the Rwandan side that "Germany will remain” supportive of the budget support path.

"It is a strong will of my government to work with your government to see that social economic development is successful,” Ambassador Timpe said, and stressed his government’s will to comply with the current aid effectiveness agenda.

The financial cooperation pact has €26.5 million out of which €14 million is for general budget support.

The €12 million for technical cooperation pact goes into areas such as technical advice for poverty reduction, decentralization, health and family planning.

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