Rwanda, BADEA discuss collaboration on smart cities and private sector growth

The Minister of Finance and Economic Planning, Yusuf Murangwa, on July 31 hosted Abdullah Kh. Almusabeeh, President of the Arab Bank for Economic Development in Africa (BADEA), for high-level talks aimed at strengthening strategic cooperation. BADEA, a multilateral development finance institution owned by 18 member states of the League of Arab States, has been operational since 1975 and plays a critical role in financing development projects across Africa. ALSO READ: Rwanda, BADEA sign Rwf11bn deal to construct Nyagatare-Rukomo road In Kigali, the BADEA delegation met with officials from the Ministry of Finance shortly after the signing of two facility agreements between the bank and the Government of Uganda. The agreements, worth $150 million, aim to bolster Uganda’s private sector through public and private sector financing. The deal was formalised on the sidelines of the 41st Board of Governors meeting of the Trade and Development Bank Group (TDB Group), held in Kigali. “BADEA has been a key partner in financing critical infrastructure projects across energy, transport, and water and sanitation, driving Rwanda’s sustainable growth,” the Ministry of Finance and Economic Planning (MINECOFIN) said in a statement. Among the major joint initiatives is Kigali Innovation City (KIC), a flagship smart city project being developed by the Government of Rwanda in partnership with Africa50 and BADEA. Positioned as “The Digital Heart of Africa,” the 61-hectare development is projected to generate $2 billion in economic value, $150 million in annual ICT exports, and attract over $300 million in foreign direct investment (FDI). ALSO READ: Five things to know about Kigali Innovation City BADEA has also committed $18 million to the rehabilitation of the 36-kilometre Nyacyonga–Mukoto road, which will connect major national roads in the City of Kigali and Northern Province. The road begins at the Kigali–Gatuna junction in Gasabo District and ends at the Kigali–Musanze junction in Rulindo District. The bank’s financial footprint extends beyond Rwanda. During the TDB Group meeting, BADEA announced $150 million in new support for Uganda’s private sector. Of this, $100 million will be channeled through BADEA’s Private Sector Window to the Uganda Development Bank Limited (UDB), for lending to strategic sectors including agro-processing, infrastructure, manufacturing, health, and education. The remaining $50 million, secured under the Public Sector Window, will finance micro, small, and medium enterprises (MSMEs) in agriculture, agro-industry, infrastructure, and social services. “Today’s loan agreement with the Government of Uganda is an outstanding example of how governments can leverage BADEA’s financial instruments to empower the private sector and drive social and economic transformation,” said Almusabeeh. Since its inception, BADEA has committed approximately $2.5 billion to Uganda’s development priorities, with investments spanning agriculture, transport, energy, education, health, and water and sanitation. Uganda’s Finance Minister Matia Kasaija hailed the evolving partnership: “Over the last five decades, our collaboration focused on public sector infrastructure. Today, BADEA is scaling up development finance to support private sector and trade-led growth.” Dr. Patricia Adongo Ojangole, Managing Director of UDB, said the deal marks a significant step toward inclusive development. “This collaboration reflects our dedication to supporting critical sectors like agriculture, health, and infrastructure. By empowering MSMEs, we’re not only improving livelihoods but also enabling long-term, sustainable economic growth,” she said. Agriculture, agro-industry, and manufacturing account for around 75% of UDB’s lending portfolio.

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Rwanda, BADEA discuss collaboration on smart cities and private sector growth