October 8, 2024: The Government of Rwanda has signed an agreement with the German Development Bank KfW, on behalf the German Government for an additional contribution of EUR 15 million (approximately Frw 22 billion) to the basket for inclusive Pro-Poor infrastructure. This initiative aims to support rural districts by financing essential local infrastructure to improve the living conditions of citizens.

This new funding builds on Germany´s initial contribution of EUR 16 million to launch the basket and complements contributions from other Development Partners such as AFD (France) and LuxDev on behalf of the Government of Luxembourg.

The signing ceremony, held at The Ministry of Finance and Economic Planning (MINECOFIN) was attended by several high-level officials including the Minister of State in charge of Public Investments and Resource Mobilization Mutesi Rusagara, Local Administrative Entities Development Agency (LODA) Director General Claudine Nyinawagaga and Simon Koppers, Head of Central Africa Division at the German Federal Ministry of Economic Cooperation and Development (BMZ).

The Inclusive Pro-Poor Basket is implemented by LODA (Local Administrative Entities Development Agency) and focuses on improving access to basic public services, rehabilitation of infrastructures, provision of employment opportunities, improvement of resilience in terms of climate change and positive impact on women. The eligible districts to benefit from the Pro-Poor Basket fund include Gisagara, Nyanza, Ngoma, Nyaruguru, Gatsibo, Nyamagabe, Ruhango, Kamonyi, Rulindo, Gakenke, Burera, Gicumbi, Rutsiro, Nyabihu, Ngororero and Nyamasheke.

Following the signing event, the Minister of State in Charge of Public Investments and Resource Mobilization Mutesi Rusagara welcomed the additional funding, expressing optimism that it will allow LODA to support local governments to invest more effectively in local economic development projects. “The Government of Rwanda has set ambitious targets in NST2 to enhance service delivery, reduce poverty, and enhance economic graduation. The Pro-Poor Basket is an efficient and effective tool to contribute to the achievement and hence contribute to NST2 implementation”, Minister of State Rusagara stated.

LODA´s Director General, Claudine Nyinawagaga highlighted long-established working relationship with KfW, noting that setting up and implementing the Pro-Poor Basket in close cooperation with KfW, AFD and LuxDev marks an important milestone achieving the socio-economic development of Rwanda´s rural population.

Dr. Simon Koppers, Head of Central Africa Division at the German Federal Ministry of Economic Cooperation and Development (BMZ), highlighted that throughout the many years of Rwandan-German development cooperation a strong focus has always been on improving the provision of public services and infrastructure for poor and vulnerable people. In this context the topping up of the Pro-Poor Basket is a testimony to the continuing strong ties