€52.1 Million Financing Consensus by Rwanda and Germany in Contribution to Sustainable Urban Development, Decentralization, Advancement of Small and Medium Size Business in Kigali
By Abdul Rahman Bangura –
NEW AFRICA BUSINESS NEWS ( NABN ) Freetown, Sierra Leonne- Rwanda and Germany beget autographed of a financing agreement worth better than €52.1million (Rwf53billion) to bolster sustainable urban development, decentralization, and promotion of growth and export-oriented small and medium-sized businesses.
The contract was electronically endorsed on Monday, April 8th, 2020 between Minister of Finance and Economic Planning – Dr. Uzziel Ndagijimana of Rwanda and the German Ambassador to Rwanda – Dr. Thomas Kurz. is also expected to bring hope to a small export business that has been affected by the global coronavirus epidemic.
This financing partnership will render to facilitate preeminence sectors such as decentralization and good governance, employment creation as well as green development which will subscribe to the accomplishment of Rwanda’s long term development goals.
The grant agreement will promote growth and export-oriented SMEs with an additional € 14.1 million (Rwf14.2billion), and urban development with an additional €20 million (Rwf20.3billion), while decentralization and good governance will get an additional €18 million (Rwf18.3billion).
In this regard, this will predicted to nudge Rwanda’s economic growth of 8.4% average and create the needed 200,000 new jobs every year from the current 160,000 jobs as bulged by the National Institute of Statistics (NISR). Stretch in urban development, the funds will put into the anatomy prevailing public-private partnerships (PPP) which have 15,000 evidence departments marshaled in 2020, against the 32,000 departments request in Kigali desired every year to unite the gap.
“The sustained development cooperation, as well as the current agreement, illustrates, once again, the mutual trust and excellent relations shared by the Government of the Federal Republic of Germany and the Government of Rwanda,” Dr. Kurz said in a statement.
According to Rwanda’s Minister of Finance and Economic Planning, “This Financing agreement will support the Government of Rwanda priority areas which include good governance, Job creation export diversification as well as sustainable urban development.”
In January Germany government offered a financing agreement worth €10 million (Rwf10billion) to support the construction of Green City Kigali – a flagship project that will be developed on 600 Ha in Kinyinya sector.
“Rwanda has decided to fundamentally change the way cities are built by following a holistic and integrated approach to green planning that builds on innovate and future-oriented technologies just as much as on home grown solutions, Minister Ndagijimana said in a previous statement.
Bilateral Cooperation between Rwanda and Germany began in the year 1963, and this affiliation concentrates on decentralization and good governance, technical education (TVET), private sector development including export finance, green urban development as well as improved access to energy and digitalization. Any two years, both countries carry Intergovernmental
Negotiations (IGN) to overhaul the modalities of a modern development program. The next IGN for the period of 2020 – 2022 are hoped to take place in Kigali in September 2020.
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