On April 30, 2019, the governments of the Kingdom of Belgium and Rwanda signed a financing agreement for the amount of 120 million Euros, which represents more than 121 billion Rwandan Francs over a period of 5 years.
This financial support that Rwanda receives from its European partner consists of a donation to support its development program of 2019 – 2024 for the sectors of agriculture, health, and urbanization, with respectively with 45 million euros, 30 million, 28 million, and the rest serving for the public financial management.
It is understood that in the agricultural sector the emphasis will be on to the improvement of value chains and the commercialization of agricultural products, better access to sexual and reproductive rights and health for the health sector,and for urbanization, the development of Rubavu, Musanze and Rwamagana cities.
The Minister of Finance and Economic Planning, Uzziel Ndagijimana, praised Belgium for supporting Rwanda’s sustainable development program.
“The Government of Rwanda regards health, agriculture and urbanization as critical sectors that have significant impact on Rwanda’s development outcomes as articulated in our National Strategy for Transformation. Therefore, Belgian support in these sectors is a step forward in realizing the targeted achievements,” Minister Ndagijimana said.
The Ambassador of Belgium in Rwanda, H.E Benoit Ryelandt said the signing of this agreement is a sign of the special relations between the two countries: “This country program is the result of a year of intensive preparations and discussions between Belgium and Rwanda, to define the priority sectors and the objectives, aspired results, and implementation modalities in each sector. The specific agreement signed today gives also the start to the first bilateral program between our two countries, where no longer any tax exemptions are requested. This commitment not to request tax exonerations is in line with the ambition to support improved local revenue collection and underlines the importance of the support the program includes to the further development of the Public Finance Management (PFM) in Rwanda through the PFM multi-donor fund” he affirmed.
The program was developed by the Belgian Development Agency, Enabel in close collaboration with the different Rwandan line ministries. Implementation will be assured mainly through Rwandan government institutions in coordination with Enabel.
This agreement followed another one signed between the two countries in 2011, worth 160 million euros, and designed to support health, energy and decentralization according to the Rwandan official.