A loan agreement worth US$35million (Approx. Rwf 20.8billion) signed yesterday between Rwanda and the African Development Bank (AfDB) is expected to boost the livestock sector through modernisation of various farming methods.
The loan comes at the time when Rwanda has registered progress in the sector and will assist in its modernisation.
Speaking at the loan-signing event held at the Ministry of Finance, Minister John Rwangombwa said that the funds would support livestock development in Rwanda.
He noted that the funds will assist in creating an enabling environment that will stimulate the development of a modern livestock industry through value addition and access to markets in order to encourage diversification of the economy, sustain growth, create jobs and alleviate poverty.
“We have worked with AfDB in this area before particularly on a project that had a very big impact in increasing livestock farming in our country especially on the diary side. This is an addition to the achievement we already have in place,” said Minister Rwangombwa.
The funds are to be channelled through Sector Budget Support which is recognition of Rwanda’s improvement in delivery mechanisms.
Rwangombwa added that; “We highly appreciate the support we get from AfDB and we always do our best to get maximum results from the support in terms of improving the lives of our population and the development of our country.”
The AfDB Regional Director Gabriel Negatu said that the good collaboration between the bank and Rwanda has made it possible to maintain the support and that AfDB is intending to build a stronger partnership with Rwanda.
“The bank and the government of Rwanda have continuously maintained a very high partnership which has helped the bank’s portfolio to move forward,” he said.
The interest-free loan is to be paid back in 40 years and has a ten-year grace period.