European Union Commission has transferred Euro10 million (around 8.5bn) last disbursement of Euro40 million grant for construction of 200 kilometer feeder roads in rural areas to support agriculture activities.
The funding agreement for the total grant was signed back in 2013 for the rehabilitation of 700 kilometer road network.
According to officials, most of the roads were rehabilitated, leaving only 200 kilometers to be rehabilitated in seven districts of the country.
The rehabilitation of the feeder roads is expected to contribute to poverty reduction drive through the promotion of equitable and inclusive economic growth in the agriculture sector.
The financial support equally is expected to improve consumer access to affordable food and ease access of food producers to markets.
In the EU statement released yesterday; the last payment has completed the €40 million provided in the framework of a Sector Policy Support Programme for the improvement of the rural road network in Rwanda, which ran over the past four and half years.
Ambassador Michael Ryan, Head of the Delegation of the European Union to Rwanda, noted that rural roads provide the backbone of economic activity for nearly 80 percent of Rwanda's citizens, most of who depend on farming and small scale commerce for their livelihoods.
“EU financial support has the ultimate objective of reducing poverty and improving living conditions for Rwandans, 80 percent of our assistance is now budget support, a sign of EU confidence in Rwanda's economic management,” he said in a statement yesterday.
Geraldine Mukeshimana the minister for Agriculture said the roads to be rehabilitated are in Huye, Muhanga, Bugesera, Ngoma, Rulindo, Ngororero and Rubavu districts.
“It is a project that should be completed by December 2017, it was supposed to rehabilitate 700km of feeder roads and maintain 500 km,” she told The New Times.