Government of Rwanda Secures $45 Million in Financing from BADEA for Water Security and Private Sector Growth
Kigali, October 8, 2025 – The Government of Rwanda today signed two financing agreements with the Arab Bank for Economic Development in Africa (BADEA) totaling US $45 million to advance national development goals.
The first is a US $20 million (approximately Frw 29 billion) loan to expand the Karenge Water Project's transmission and distribution systems. This project is a critical step towards Rwanda’s goal of achieving 100% access to clean water and sanitation by 2029. It will directly increase safe water access for households in Kigali and Rwamagana districts, enhance the water sector's resilience to climate change, and improve the standard of living for citizens.
A second agreement provides a US $25 million line of credit to the Development Bank of Rwanda (BRD) to bolster private sector and Small and Medium Enterprise (SME) development. This financing is a key driver for job creation and economic growth.
“These agreements reinforce the five-decade partnership between Rwanda and BADEA, a collaboration that has been instrumental in driving development across our economy,” stated Godfrey Kabera, Minister of State for National Treasury. “We look forward to scaling up this partnership through new approaches and highly scalable funding for strategic projects.”
Dr. Fahad Al-Dossari, Chairman of BADEA’s Board of Directors, commented: “Today marks a new milestone in our long-standing partnership. We are pleased to support Rwanda's sustainable development goals with $20 million to enhance clean water access and a further $25 million to accelerate the private sector's role as an engine of growth and job creation.”
Rwanda’s cooperation with BADEA dates back to 1974. To date, BADEA’s portfolio in Rwanda is estimated at over US $300 million, financing key sectors such as agriculture, energy, water, and transport, which are vital to achieving the objectives of Rwanda’s National Strategy for Transformation (NST2) and Vision 2050.
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