July 21, 2024
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Rwanda Secures $1 Billion Concessionary Loan from South Korea for Development Projects

Kigali, Rwanda – The Rwandan Finance Ministry has announced a landmark agreement with South Korea, securing $1 billion in concessionary loans to support various development projects in the transport, healthcare, and education sectors.

The funds will be disbursed over a five-year period from 2024 to 2028, significantly boosting Rwanda’s infrastructure and public services.

This new agreement doubles the previous four-year deal, which saw South Korea commit $500 million to Rwanda, with this arrangement set to conclude in 2026.

The infusion of financial support from South Korea underscores the growing economic partnership between the two nations and highlights Rwanda’s commitment to enhancing its developmental agenda.

In May, the Rwandan government projected that 1.32 trillion Rwandan francs ($1.02 billion) of the 2024/25 budget would be sourced from external loans. The substantial concessionary loan from South Korea is expected to play a crucial role in meeting this target, facilitating the execution of key projects that will drive Rwanda’s socio-economic growth.

The agreement was solidified following high-level meetings between Rwandan President Paul Kagame and South Korean President Yoon Suk Yeol during a summit held in South Korea in early June. The discussions, centered on mutual cooperation and development, culminated in this significant financial commitment.

The allocation of the $1 billion will focus on critical sectors: Enhancing the country’s transport infrastructure to improve connectivity and support economic activities, Upgrading healthcare facilities and expanding access to medical services to ensure a healthier population and Investing in educational infrastructure and resources to build a knowledgeable and skilled workforce for the future.

Finance Minister Uzziel Ndagijimana highlighted the transformative potential of this financial support, stating, “This partnership with South Korea is a testament to our shared vision for Rwanda’s development. The funds will be pivotal in executing projects that will not only boost our economy but also improve the quality of life for Rwandans.”

As Rwanda continues to forge strategic international partnerships, the country remains committed to its Vision 2050 agenda, aiming for high-income status through inclusive and sustainable development. The support from South Korea is a significant step towards achieving these ambitious goals.

The successful implementation of the projects funded by this loan will be closely monitored, ensuring transparency and accountability to maximize the benefits for the Rwandan population.

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