Rwanda gets Rwf29bn German grant to boost decentralisation, private sector

Rwanda and Germany on Thursday signed a bilateral agreement on technical cooperation between both countries worth €29 million (Rwf29.5 billion) aimed at boosting Rwanda's decentralisation plan as well as private sector development.

The Ambassador of Germany to Rwanda, Dr. Peter Woeste, and Dr. Uzziel Ndagijimana, the Minister of Finance and Economic Planning, signed the new agreement on technical cooperation at the Ministry of Finance offices.

The grant will be disbursed over the next three-year period of cooperation between the two countries (2017 – 2019).

The grant, officials indicated, will support areas of decentralisation or good governance as well as sustainable economic cooperation including technical and vocational training (TVET) and private sector development.

Germany, it was noted, continues to provide advice on an improved macroeconomic and investment policy of Rwanda and supports a number of civil society organizations in an effort to strengthen the rights of target groups like women and people with HIV/AIDS.

The German envoy expressed his appreciation of Rwanda’s development results in the past and encouraged the country to continue and stay ambitious in implementing the new National Strategy for Transformation in partnership with the private sector and civil society.

"I appreciate the open dialogue with the government of Rwanda, even if we have sometimes different opinions on the best way forward. This is part of a real friendship," the diplomat said.

Among others, he noted that TVET and the private sector are important fields for Rwanda's development agenda.

According to Ndagijimana, the new support will contribute towards the government of Rwanda's priority areas such as good governance, employment as well as capacity building which will contribute to the achievement of Rwanda’s long term development goals.

“The sustained development cooperation as well as the current agreement signed illustrates, once again, the mutual trust and excellent relations shared by the Government of the Federal Republic of Germany and the Government of Rwanda," Ndagijimana said.

According to the Ministry of Finance, bilateral cooperation between Rwanda and Germany began in the year 1963.

The KFW and GIZ are the implementing Agencies on behalf of the Federal Republic of Germany: GIZ through Technical Cooperation and KFW through Financial Cooperation.

Every three years, both countries hold intergovernmental negotiations (IGN) to fix modalities of a new development program.

The most latest IGN, for the period of 2017-2019, took place in Kigali in May 2017, when the German Government committed to contribute a grant of €81 million and  €39 million were earmarked for Technical Cooperation (GIZ).

The KfW, formerly KfW Bankengruppe(banking group), is a German government-owned development bank, based in Frankfurt, Germany.

The Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ) is a German development agency - headquartered in Bonn and Eschborn - that provides services in the field of international development cooperation



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