Lower House approves Rwf500bn financing to drive job creation

Parliament has approved two financing agreements worth more than Rwf500 billion aimed at supporting Rwanda’s inclusive and resilient job creation through reforms in taxation, private sector development and key infrastructure investments. The loans provided by the International Development Association (IDA) and Standard Chartered Bank among other partners got unanimous approval from 70 MPs during a plenary sitting on Monday, April 13. ALSO READ: Ngirente unveils govt strategy to create over 1m jobs by 2029 The two loans, which together total approximately Rwf501 billion, are expected to finance both recurrent and development expenditure under the Rwanda Inclusive and Resilient Job Creation Development Policy Financing programme. The first agreement is a facility worth €213.16 million (approximately Rwf364.78 billion) financed through a structure involving Standard Chartered Bank, Société Générale, International Development Association as guarantor, and other partners. The loan will be repaid over 15 years, with a six-year grace period. ALSO READ: Top 10 sectors that contributed to 2024 job creation in Rwanda The second agreement is a concessional credit of ¥15.38 billion, equivalent to about Rwf137 billion, provided by IDA. It carries a 31-year repayment period, with an eight-year grace period. The Minister of State for National Treasury, Godfrey Kabera, said the financing will support a range of reforms aimed at boosting job creation through stronger economic systems. ALSO READ: What to know about cabinet-approved system to track job creation He said the interventions will focus on improving tax collection, strengthening public private partnerships, enhancing the performance of state-owned enterprises, and expanding private sector participation. “Activities will include improving tax collection, improving public private partnership and improving the operation of state-owned institutions doing businesses and improve private sector participation,” Kabera said. He added that the programme is also expected to ease constraints to employment creation, particularly through improved digital infrastructure. “It will help to address the challenges affecting creation of inclusive jobs by integrating fast internet,” he said. The financing package will support both recurrent and capital expenditures aimed at advancing government efforts to create resilient and inclusive jobs. Kabera explained that the loan objective is to finance recurrent and capital expenditures to support the government in creating resilient and inclusive jobs by strengthening fiscal sustainability, enhancing foundational infrastructure for job creation, and promoting sectoral interventions to catalyse inclusive job creation. The financing also supports strategic investments under the Second National Strategy for Transformation (NST2), including Rwanda’s ambition to become a regional connectivity and logistics hub and to reinforce its position as a leading tourism destination. These are expected to “strengthen macroeconomic stability, improve the efficiency of public resource allocation, and level the playing field to enable greater private sector participation,” he said. The programme also targets job creation constraints by expanding broadband access through telecom infrastructure sharing, strengthening long-term savings through the Ejo Heza scheme, and improving labour market systems through the Integrated Labour Management Information System (iLMIS), alongside education and job matching initiatives. In agriculture and industry, the reforms aim to improve input markets, promote private sector participation, and modernise production systems. These include digital livestock traceability, strengthened aquaculture regulations, and improved breeding practices, he said.

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Lower House approves Rwf500bn financing to drive job creation