Rwanda receives € 45 million grant to support vulnerable families, SMEs affected by COVID-19

On 29 November 2021 at 04:46

At the start of the intergovernmental consultations between Rwanda and Germany, the Minister of Finance and Economic Planning Dr. Uzziel Ndagijimana and the Regional Manager of KfW, Ms. Bettina Tewinkel have today signed a number of grant agreements in the presence of the Ambassador of the Federal Republic of Germany to Rwanda Dr. Thomas Kurz and a delegation from the Federal Ministry for Economic Cooperation and Development.

The signing of the agreements is a result of the successful inter-governmental negotiations between the two Countries that were concluded in November last year.

A sector budget support for Social Protection of € 36.0 million will support the Government of Rwanda in the implementation of significant sector reforms around Rwanda’s Vision Umurenge Program (VUP).

The program aims at improving the coverage and effectiveness of Rwanda’s social protection system through expansion of VUP Programme and to respond to the Covid-19 pandemic effects on Rwanda’s population.

Additionally, support to Small and Medium-sized Enterprises through a COVID 19 Emergency Program at BRD was also agreed upon. Rwandan SMEs in the exporting sector will benefit from additional € 8.66 million in the Export Growth Fund managed by BRD. Germany had previously supported the fund with € 13.5 million.

Speaking after the signing event, Minister Ndagijimana said: “Protecting and supporting vulnerable households and small and medium enterprises overcome the impact of COVID-19 especially on their livelihoods is critical for an inclusive economic recovery. This support will complement Government efforts to ensure that as the economy turns around, no one is left behind.”

The German Ambassador Dr. Thomas Kurz highlighted the strong commitment and successful management by the Rwandan government to address the pandemic. He expressed his appreciation for the cooperation projects to move towards implementation, operationalizing German support to COVID-response and the Rwandan development agenda as a whole.

The Regional Manager of KfW, Ms. Bettina Tewinkel, highlighted the immediate and efficient response of the Rwandan Government to the current pandemic. KfW continues to work hand in hand with the Rwandan partners in the social and economic recovery.

In addition to these contracts related to commitments from the 2020 intergovernmental negotiations, two further agreements for) an ICT Facility at RISA (€ 12.5 million) and b) an additional phase of the Public Financial Management Basket Fund at MINECOFIN (€ 4.0 million) were also signed between MINECOFIN and KfW.

The German delegation and Rwandan partners will continue the intergovernmental consultations with meetings on climate action, governance and decentralization and sustainable economic development including site visits in Kigali and Gicumbi this week.

Officials in a group photo after signing agreements.