Rwanda Secures US$40M Chinese Loan for Mega-Irrigation Project in Gisagara District

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Rwanda is set to launch a major irrigation development project in Gisagara District following the signing of a concessional financing agreement with China on Wednesday, January 22. The initiative, dubbed the Giseke Dam and Irrigation Project, is expected to benefit over 915 households by providing irrigation infrastructure to support crop cultivation.

 

Gisagara District, known for its large-scale rice farming, is a critical agricultural hub in Rwanda. The project is part of the government’s broader efforts to enhance agriculture through improved water management, aligning with the targets of the second National Strategy for Transformation (NST2).

 

Speaking at the signing ceremony in Kigali, Minister of Finance and Economic Planning Yusuf Murangwa highlighted the significance of the partnership. “China has been a steadfast development partner for Rwanda, supporting various sectors critical to our development aspirations. The Giseke Dam and Irrigation Project will significantly contribute to the sustainable transformation of agriculture, as outlined in NST2,” Murangwa said.

 

The project aims to irrigate 2,640 hectares of land, bolstering agricultural resilience to climate change and promoting water-saving technologies. While the exact timeline for implementation is yet to be determined, a feasibility study will be conducted to finalize the project’s timeframe.

 

China’s Ambassador to Rwanda, Wang Xuekun, emphasized the project’s importance in advancing China-Rwanda cooperation. “The signing of this agreement is a concrete step toward implementing the ‘10 Partnership Action Plans’ proposed by President Xi Jinping for China-Africa cooperation. It holds significant importance in advancing Rwanda’s agricultural modernization and enhancing its production capacity,” he said.

 

The project also reflects the strong economic ties between Rwanda and China. According to data from the Ministry of Finance, the current portfolio of Chinese-funded projects in Rwanda totals $600 million, including $450 million in concessional loans and $150 million in grants. These projects span key sectors such as infrastructure, education, health, geology, and mining.

 

This development is another milestone in the growing partnership between the two nations, as Rwanda continues to leverage international collaboration to achieve its agricultural and economic transformation goals.

 

Source: Taarifa