The Chamber of Deputies has approved two financing agreements worth a combined Rwf279 billion to support government programmes aimed at creating decent and sustainable jobs.The agreements, presented by Godfrey Kabera, Minister of State for National Treasury in the Ministry of Finance and Economic Planning, were approved on Thursday, August 20, with all 66 MPs present voting in favour.ALSO READ: The book industry: An overlooked engine of job creationThe first agreement provides €81.71 million, equivalent to about Rwf140 billion, while the second is worth ¥15.02 billion, approximately Rwf139 billion.The financing will support recurrent activities and development projects included in the current financial year’s budget under Rwanda’s Development Policy Financing Programme.Kabera said the financing is part of efforts under the second National Strategy for Transformation (NST2) to accelerate inclusive economic growth and expand opportunities for sustainable employment.“One of the priorities under NST2 is to accelerate inclusive economic development and create decent and sustainable jobs. These financing agreements will help us implement measures and investments that contribute to that objective,” Kabera said.Three areas targetedKabera said the programme focuses on three broad areas: strengthening public finance management, addressing barriers to job creation, and supporting industrial and agricultural transformation.ALSO READ: Lower House approves Rwf500bn financing to drive job creationThe first area includes measures to increase domestic resource mobilisation, improve tax collection, and strengthen the implementation and oversight of projects involving the government and private sector.“It will also support public-private partnerships and strengthen oversight of public institutions involved in commercial activities.”Kabera said these measures are intended to strengthen economic resilience, maintain macroeconomic stability and create a better environment for private investment.The second area focuses on removing barriers that limit job creation. This includes expanding broadband infrastructure, promoting long-term saving through the Ejo Heza scheme, strengthening vocational skills training and improving links between job seekers and employers through the Labour Market Information System (LMIS).ALSO READ: How City of Kigali plans to create over 50,000 jobs annuallyThe third area targets industrial development and agricultural transformation.It includes improving access to agricultural inputs, increasing private-sector participation and promoting modern production methods.Kabera cited the use of technology in livestock traceability, improved animal husbandry and enforcement of laws governing aquaculture among the measures expected to support the sector.He said the investments are also linked to Rwanda’s ambition under NST2 to strengthen its position as a regional trade and tourism hub.Why several lenders?During the debate, MP Christine Bakundufite questioned why several financial institutions were involved in the financing arrangements.MP Yvonne Mujawabega, meanwhile, asked how the loans would support efforts to mobilise savings through Ejo Heza, arguing that savings mobilisation already has its own budget.Kabera said the involvement of several lenders was necessary because the financing was arranged as a syndicated loan.“We needed to mobilise a substantial amount of financing, which is why several financial institutions came together under the syndicated arrangement,” he said.He added that the arrangement also helped reduce the cost of borrowing.“The guarantees provided by the Multilateral Investment Guarantee Agency helped us secure more favourable financing terms. This is reflected in the interest rates,” Kabera said.The €81.71 million loan will be repaid over 15 years, including a six-year grace period, at an interest rate of 0.57 per cent.The ¥15.02 billion loan will also be repaid over 15 years, including a six-year grace period, at an interest rate of 0.63 per cent.On Ejo Heza, Kabera said the Ministry of Finance and Economic Planning works with different institutions to encourage saving through awareness campaigns across the country.“Our efforts to promote saving go beyond Ejo Heza. We work with different institutions to explain the importance of saving and encourage people to develop a culture of saving,” he said.The two financing agreements were signed in Kigali on August 13, 2026.
