Government has signed a Rwf15.3 billion (EUR 18.5 million) financial agreement with kfw Entwicklungsbank a German development bank that will go into supporting Rwanda’s budget.
The money according to a press statement issued recently will also support public financial management and decentralization.
The signing of the financial agreement happened last week on 10th December.
Stephan Klingebiel, the Director of the kfw offices in Kigali said that “the government of German has committed itself to support Rwanda ownership of development effort.”
Of the total amount of these funds, Rwf11.6 billion will be provided in the form of general budget support for the financial years 2009/2010 and 2010/2010 in supporting of Economic Development Poverty Eradication Strategy (EDPRS).
“The provision of general budget support and financial support to the Common Development Fund (CDF) is seen as an appropriate measure to put the ownership of development effort into action,” explained Klingebiel.
The Rwandan government has prioritized a strong and well functioning public financial management (PFM) system and as a result, PFM has received Rwf828.8 million to reform the PFM agenda.
PFM money will be contribute to a basket fund which will used in the future to harmonise approaches across development partners.
A further Rwf2.9 billion of this amount will be transferred to the Common Development Fund a government fund which is a major player in local development investment.