The Hungarian Foreign Affairs Minister Péter Szijjártó is scheduled to return to Rwanda in November for an official visit during which the two countries will sign a tied credit line of $52M. Szijjártó who was in the country this week for the just-concluded African Union and European Union ministerial meeting, told The New Times that he will be returning to Rwanda next month for the activation of the agreement. The Hungarian top diplomat explained that the $52M financing is a soft loan at zero interest payable in 20 years with an 8 year grace period. With that, Rwanda will not start paying the loan in 2029. He explained that the terms of credit note that there should be at least 50 per cent of Hungarian contribution in selected projects in agriculture, water management, water management, digitization or education. “I will be back in November to launch a tied Aid programme between Rwanda and Hungary. This means that the Hungarian Eximbank which is under the Foreign Minister’s portfolio is ready to provide $52M credit programme. It is a soft loan, 0 per cent interest, to be paid in 20 years and the first 8 years will be grace period,” he said. “The terms for providing the credit is that there should be at least 50 per cent of Hungarian contribution which means that if Rwanda picks a project or projects in Agriculture, Water Management, digitization or education, half of the project has to be completed by Hungarian companies while the other half Rwandan companies,” he added. Hungarian Eximbank is also opening a $33 million credit line for Hungarian companies working in health care and water management seeking to enter the local market. Among areas that he noted could be in demand by firms from Hungary include agriculture industries, food processing technologies, food processing, value addition, irrigation, education and digitalization. With regard to trade, the Hungarian Foreign Minister said that Rwandan exports could fare well in their market especially agriculture products, vegetables, fruits, tea and coffee. Minister of Foreign Affairs and International Cooperation, Dr Vincent Biruta in February 2020 visited Hungary aiming at strengthening bilateral relations between the two countries; deepening the scope of investment, trade, education, agriculture and health between the two countries. At the time, the two countries signed a Memorandum of Understanding (MoU) to establish a Mechanism for Regular Consultations between the two Ministries and an MoU on Development Cooperation.
