November 16, 2023: The Government of Rwanda and KfW, acting on behalf of the Federal Republic of Germany, signed a grant agreement to support social protection sector reforms.

A sector budget support of EUR 15.0 million grant (approx. Frw 19.5 billion) from the German Financial Cooperation (implemented by KfW on behalf of the German Federal Ministry of Economic Cooperation and Development (BMZ)) will support the Government of Rwanda in implementing significant sector reforms in the social protection sector. This support aims to enhance the coverage and effectiveness of Vision Umurenge Programme (VUP) and to strengthen accountability and public financial management in the social protection sector. It is the third contribution of the German Government to the sector, amounting to EUR 51.0 million (grant) in total, with past support in FY 2021/22 and FY 2022/23.

Speaking after the signing event, Minister of Finance and Economic Planning Dr. Uzziel Ndagijimana said: “Social protection remains one of the main priorities of the Government of Rwanda. We have built an integrated social protection system to ensure vulnerable groups have access to predicable cash transfers that will provide income support, access to social care services, and resilience to shocks. This continued support from the German Government will enhance the existing social protection programs to ensure that no one is left behind”.

Ms. Andrea Hoeltke, division head of KfW Development Bank, commended the Government of Rwanda for having adopted recent reforms and innovations in the social protection sector. These include the adoption of the new VUP program document and the national strategy for sustainable graduation. These important policy reforms were also discussed during the high-level policy dialogue forum in October 2023, which demonstrates a strong commitment of Government of Rwanda to eradicate poverty and improve living conditions for all.