Rwanda Approves $48 Million Loan for Gisagara Irrigation Project

Kigali, Rwanda - December 2025

The Rwandan Parliament has approved a loan agreement between the Government of Rwanda and the Export-Import Bank of China (Exim Bank of China) to fund an irrigation project in Gisagara District. The loan, totaling 344.5 million Yuan (over $48 million), was initially signed in Kigali on August 21, 2025.

The repayment plan spans 13.5 years, with Rwanda starting repayments after six and a half years at an interest rate of 2% per annum.

According to Finance Minister Murangwa Yusuf, the project aims to strengthen the agricultural sector and improve resilience against climate change by irrigating 2,640 hectares of land and introducing water harvesting and efficient irrigation technology in Giseke, Gisagara District.

“This will enable farmers to farm year-round, achieve increased yields, and adopt productive farming methods,” Minister Murangwa said, emphasizing the project’s economic and sustainable development impact.

The project will involve infrastructure construction, including the building of an irrigation dam and associated pipelines, helping farmers transition from rain-fed to irrigated agriculture.

During parliamentary discussions, MPs raised questions about the terms of the agreement, particularly the requirement to purchase equipment and technology from China.

MP Mukabalisa Germaine cautioned that such provisions could delay the project or increase costs, noting that similar technologies might be available locally or in the region. MP Rubagumya Furaha added that aligning technical standards with China’s should not pose a problem, despite structural differences between the countries.

Minister Murangwa responded that the collaboration with Exim Bank is standard practice for international loans, offering favorable terms such as a six-year grace period before repayment, and reiterated that independent inspectors will ensure the quality of equipment and construction.

The irrigation project is slated to begin by 2028 and is expected to boost agricultural productivity, enhance food security, and support Rwanda’s economic development goals.