Rwanda secures $1 bln funding deal with South Korea

Rwanda and the Republic of Korea today signed a $1 billion framework arrangement aimed at providing concessional funding for a range of projects.

The financing by Korean Government is channeled through the Economic Cooperation Development Fund (ECDF). According to Rwanda’s Ministry of Finance and Economic Planning, the new framework arrangement replaces the previous one signed in 2022, which had an allocation of $500 million for the period 2022-2026.

“Covering the years 2024 to 2028, the five-year agreement will be aligned with Rwanda’s second National Strategy for Transformation (NST2) and is set to support projects in key sectors of the Rwandan economy, including transportation, healthcare, and education,” the finance minister said.

Following the agreement signing, Yusuf Murangwa, Minister of Finance and Economic Planning emphasized, “Rwanda-Korea current bilateral cooperation is aligned to our National Strategy for Transformation and plays a pivotal role in enhancing Rwanda’s human capital for the 21st century, transforming our agricultural sector, establishing a foundation for ICT-led governance, and nurturing a thriving business environment. The framework signed is a significant milestone in our bilateral cooperation and provides assurances to achieve even more results in areas of our engagement.”

Jeong Woo Jin, Ambassador of the Republic of Korea to Rwanda said; “I trust that the EDCF Framework Arrangement signed today will serve as a robust foundation to elevate the relations between our two countries to the next level after the inaugural 2024 Korea-Africa summit where H.E. President Kagame attended. I believe there is more room to cooperate in bilateral relations, especially based on the continuous cooperation in Agriculture, ICT, Education, Health and Infrastructure”.

Rwanda and the Republic of Korea have a longstanding history of warm bilateral and multilateral development cooperation. Key areas of collaboration between the two nations include education and capacity building, rural development, healthcare, energy, agriculture, and information and communications technology.

Last month, President Paul Kagame was in the Asian country where he joined other leaders at the first Korea-Africa Summit that was co-chaired by President Yoon Suk Yeol of South Korea and President Mohamed El Ghazouani of Mauritania and Cheikh Ghazouani, who is the current African Union (AU) Chairperson.

The two-day summit themed “The Future We Make Together: Shared Growth, Sustainability, and Solidarity”, convened high-ranking officials from South Korea and Africa to discuss ways of fostering a better-structured and strengthened partnership between the two sides.

While there, President Kagame was also awarded an Honorary Doctorate in public policy and management by South Korea’s Yonsei University.