The Rwandan government has secured a $47 million concessional loan from China to finance critical development projects aimed at boosting the country’s agricultural sector.
The agreement, signed on January 22, 2025, was disclosed by Rwanda’s Ministry of Finance and Economic Planning.
The funds will be allocated to two key projects: the construction of the Giseke Dam in Gisagara District and the development of an irrigation system spanning 2,640 hectares of farmland in the same region.
The irrigation initiative is designed to benefit approximately 915 households, impacting 4,578 people, by enhancing agricultural infrastructure and productivity.
This project is expected to improve farming activities, increase crop yields, and stimulate the local economy as farmers supply fresh produce to markets in Gisagara and surrounding areas.
Gisagara District, located in southern Rwanda, is a major agricultural hub, particularly known for rice farming. Other staple crops grown in the area include cassava, green bananas, potatoes, sorghum, and maize.
The district has been a priority for government-led efforts to modernize irrigation systems and reduce dependence on rain-fed agriculture.
According to the Ministry of Agriculture, Rwanda has the potential to irrigate 589,711 hectares of land, with nearly half of this area located in marshlands and the remainder on hilly terrain.
However, as of 2018, only 48,508 hectares—about 7.5% of the total potential—had been developed for irrigation.
The government has been actively investing in irrigation infrastructure to enhance agricultural productivity, ensure food security, and support rural livelihoods.
Agriculture remains a cornerstone of Rwanda’s economy, contributing 27% to the national GDP and employing 56% of the workforce.
This loan aligns with Rwanda’s broader strategy to expand irrigation infrastructure, mitigate the risks of unpredictable rainfall, and empower rural communities by increasing agricultural output and household incomes.
READ ALSO: Kenyan Youths Turning to Side Hustles Amid Economic Challenges
