Germany backs decentralisation with over Rwf5bn

Rwanda has received €7 million (Frw 5.5 billion) grant from Germany to support decentralization and good governance.

Claver Gatete, Minister of Finance and Economic Planning, after the signing of the agreement on Monday said the support will contribute to economic development by providing capacity building for districts to elaborate, monitor and evaluate projects.

Gatete added that the grant will support rural development and create employment opportunities, and also help to deal with the effects of climate change.

The support will be managed by the Local Administrative Entities Development Agency (LODA) and finance income-generation and economic infrastructure such as feeder roads and markets.

“Development is about delivering services to the citizens providing support to Rwanda is a sign of deepening bilateral relations,” said the German ambassador to Rwanda, Peter Fahrenhotz.

The support that is a grant form amounting to Rwf 5.5 billion (approximately US$ 7.9 million) will be allocated under the Local Administrative Entities Development Agency (LODA), formerly known as Rwanda Local Development Support Fund (RLDSF).

“This Agreement underlines the long-standing and proven cooperation between our two countries based on friendship and mutual trust.

Germany is committed to support local development,” said Peter Fahrenholtz, Germany Ambassador to Rwanda

Federal republic of Germany through its development arm KfW has pumped into the Rwandan economy funding worth € 34 million through local infrastructure INVESTMENTS as well as schools, health centres, electrification, roads and bridges, modern markets and terracing among others to date.