Rwanda received a significant financial boost from South Korea on Friday, securing $1 billion in concessionary loans to fund various development projects.
The Rwandan Ministry of Finance announced the agreement, which represents a substantial increase from the previous $500 million deal between the two nations.
This new framework, spanning 2024-2028, doubles the earlier commitment and extends its reach by two years.
The previous agreement was set to conclude at the end of 2026. The influx of funds will be directed towards critical sectors in Rwanda, including transportation, healthcare, and education, aiming to bolster the country’s infrastructure and social development.
The importance of external financing for Rwanda was highlighted in May when the government revealed that external loans would contribute over 1.32 trillion Rwandan francs (roughly $1.02 billion) to the 2024/25 national budget.
This latest agreement with South Korea significantly bolsters Rwanda’s access to these crucial funds.
The development comes on the heels of a summit held in South Korea in early June.
Rwandan President Paul Kagame was among the African leaders who participated in the summit, where he met with his South Korean counterpart, President Yoon Suk Yeol.
It’s likely that discussions during this meeting played a role in securing this substantial financial package for Rwanda.
