Rwanda, Germany sign Rwf30bn agreement to boost inclusive social protection

Rwanda has secured a grant of Rwf 30.5 billion (€18 million) from the government of Germany to strengthen its inclusive social protection system under the Vision Umurenge Programme (VUP), a flagship initiative designed to reduce poverty and promote equitable economic growth. ALSO READ: Seven interventions for needy households under five-year social protection plan The financing agreement, signed on Monday, October 6, by Yusuf Murangwa, Rwanda’s Minister of Finance and Economic Planning, and Heike Uta Dettmann, the German Ambassador to Rwanda, will support interventions including nutrition-sensitive direct support, cash transfers, public works, and shock-responsive social protection. ALSO READ: 10 key highlights from Rwanda’s new living conditions survey Rwanda has strengthened its social protection efforts to reduce poverty through various initiatives, including VUP. Over the past two decades, the country has cut poverty by more than half, from 58.9 per cent in 2001 to 27.4 per cent in 2024, marking one of the fastest declines in extreme poverty in Africa within a single generation. The new grant seeks to build on that momentum by further empowering vulnerable households through targeted social protection schemes. ALSO READ: UN Special Rapporteur lauds Rwanda’s poverty reduction efforts According to minister Murangwa, the funding, which will be implemented through the Local Administrative Entities Development Agency (LODA), is aimed at reinforcing Rwanda’s inclusive social protection architecture. “Among other support, it will strengthen nutrition-sensitive direct support, cash transfers including old age and disability grants, as well as public works. It will also enhance shock-responsive social protection and the overall capacity of the social protection system anchored on VUP,” he said. ALSO READ: Rwanda lifted 1.5m people out of poverty since 2017 – survey Maurice Nsabibaruta, the Division Manager of Community Development and Strategy Coordination at LODA, said the support will expand the reach and impact of the VUP by accelerating poverty graduation and promoting self-reliance. “We intend to accelerate poverty graduation by empowering people living in poverty to access equal employment opportunities,” he noted. “Our goal is to provide a comprehensive package that enables them to become self-reliant and sustainably lift themselves out of poverty through human capital development.” He added that the initiative will both increase support to existing beneficiaries and expand coverage to reach more vulnerable households. “We have seen from past experiences that people living in poverty can indeed improve their lives and rise out of poverty by gaining knowledge and access to employment opportunities. There are countless success stories that prove this is achievable.” He said. ALSO READ: Rwanda’s economy grew 8.9% in 2024 – Statistics body Ambassador Dettmann praised Rwanda’s commitment to inclusive development and said Germany is proud to continue partnering in its transformative journey. “It makes political sense to have partners like Rwanda, where we see the political will to achieve the country’s development. Rwanda has shown that by investing in its population, meaningful reductions in poverty can be achieved,” she said.

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Rwanda, Germany sign Rwf30bn agreement to boost inclusive social protection