Germany, Rwanda sign Rwf56 billion agreement for good governance and decentralisation

The government and the Federal Republic of Germany, yesterday, signed two bilateral agreements worth €69.5 million (about Rwf56 billion) to support decentralisation and good governance. The two grant financing agreements are in financial cooperation (€38 million) and technical support (€31.5 million). The financial support will focus on the decentralisation and good governance, economic development and creation of jobs through Technical and Vocational Education and Training programmes, Claver Gatete, the minister for finance and economic planning, said. It will also support public financial management reforms. The technical support, equivalent to €31.5 million (about Rwf2.4 billion), will support decentralisation and good governance, macroeconomic advice on poverty reduction studies and expert fund. “This financial support is aligned to the second Economic Development and Poverty Reduction Strategy (EDPRS II) and will support key sectors of our economy such as job creation and public financial management,” Gatete said. Finance minister Claver Gatete (R) chats with the German delegation before the signing. Peter Fahrenholtz, the German ambassador to Rwanda, said the support will help contribute to local development and celebrate economic growth. “These agreements underline the long-standing and proven cooperation between our countries based on friendship and mutual trust. Germany is committed to sustainable economic development, decentralisation and good governance,” Amb. Fahrenholtz said. Germany co-chairs the governance and decentralisation sector. Letcia Ukunda, the director-general of Local Administrative Entities Development Agency, said the support will help fast-track government activities toward rural development. Finance minister Claver Gatete( R) exchange documents with the German ambassador to Rwanda, Peter Fanrenholtz yesterday. Earlier this year, the government and the Federal Republic of Germany signed a bilateral financing agreement worth €7 million (about Rwf5.5 billion) to support the same sector. The Germans have been supporting decentralisation through local infrastructure investments since 2006 and have financed individual projects such as schools, health centres, electrification, roads and bridges, modern markets and terracing, among others, worth Rwf79 billion to date.

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Germany, Rwanda sign Rwf56 billion agreement for good governance and decentralisation