Rwanda, China sign over $40M financing deal to boost irrigation

The project in southern Rwanda’s Gisagara district aims to enhance agricultural resilience to climate change by irrigating 2,640 hectares of land in line with the targets of Rwanda’s Second National Strategy for Transformation (NST2), which promotes water-saving technologies to increase irrigation water productivity and foster economic growth, according to a statement issued by the ministry.

Yusuf Murangwa, the Minister of Finance and Economic Planning and Wang Xuekun, China’s Ambassador to Rwanda signed the agreement in Kigali, Rwanda’s capital.

“China has been a steadfast development partner for Rwanda, supporting various sectors critical to our development aspirations. The Giseke Dam and irrigation project will significantly contribute to the sustainable transformation of agriculture, as outlined in NST2,” Murangwa said.

Wang described the signing of the agreement as a concrete step toward implementing the "10 Partnership Action Plans" proposed by President Xi Jinping for China-Africa cooperation.

“It marks the further realization of the important consensus reached between the heads of state of China and Rwanda. China remains committed to deepening pragmatic cooperation with Rwanda across various fields, promoting mutual benefits, shared development, and bringing greater well-being to the people of both nations,” said Wang.

“The Giseke Irrigation Project, supported by concessional loan from the Chinese government, is a tangible outcome of the China-Rwanda collaboration under the "10 Partnership Action Plans." It holds significant importance in advancing Rwanda's agricultural modernization and enhancing its agricultural production capacity,” he added.

According to officials, the project is expected to directly benefit more than 900 households, or 4,578 individuals, who will utilize the irrigation infrastructure for crop cultivation.

Local markets in Gisagara district and beyond are also anticipated to benefit from the commercialization of products harvested from the project.

Economic cooperation between Rwanda and China is primarily driven by projects financed through concessional loans and grant support in key sectors including infrastructure, particularly roads and energy, as well as education, health, and geology and mining.

The current portfolio funded by the Government of China through grants and concessional loans is roughly $600 million, according to the finance ministry.