Rwanda and China Sign US$47 Million Loan Agreement for Giseke Dam and Irrigation Project

Kigali, Rwanda – The Government of Rwanda and the People’s Republic of China have officially signed a framework agreement for a concessional financing loan of US$47 million (approximately Frw 66 billion) dedicated to the construction of the Giseke Dam and the irrigation development project in Gisagara District.

This initiative aims to bolster agricultural resilience to climate change by irrigating 2,640 hectares of land. It aligns with the Second National Strategy for Transformation (NST2) objectives, which focus on promoting water-saving technologies to enhance irrigation productivity and stimulate economic growth.

Minister of Finance and Economic Planning Yusuf Murangwa stated, "China has consistently been a reliable development partner for Rwanda, aiding numerous sectors vital to our developmental goals. The Giseke Dam and irrigation initiative will greatly enhance the sustainable transformation of agriculture, as detailed in NST2."

 Wang Xuekun, China’s Ambassador to Rwanda, emphasized the importance of this agreement, stating, "The signing is a concrete step toward implementing the '10 Partnership Action Plans' proposed by President Xi Jinping for China-Africa cooperation. It reflects the mutual consensus between the heads of state of China and Rwanda. China remains committed to deepening pragmatic cooperation in various fields, promoting mutual benefits, and enhancing the well-being of both nations' populations."

The Giseke Irrigation Project is expected to benefit approximately 915 households and impact about 4,578 individuals who will utilize the new irrigation infrastructure for crop cultivation. Moreover, local markets in the Gisagara District and beyond are anticipated to profit from commercializing the agricultural products produced through this initiative.

Rwanda and China have a collaborative economic relationship focusing mainly on projects financed via concessional loans and grants. The partnership significantly impacts several sectors, particularly infrastructure, which includes roads and energy, as well as education, healthcare, geology, and mining. Currently, the Chinese government's funding portfolio through grants and concessional loans is estimated at USD 600 million, with USD 450 million allocated to concessional loans and USD 150 million to grants.