The Government of Rwanda and the International Fund for Agricultural Development (IFAD) signed a financing agreement worth $78.5 million. This funding aims to build resilience within the agricultural sector against climate change, protecting a sector that serves as a cornerstone of the national economy, employing over 64.5% of the population and contributing 25% to the Gross Domestic Product (GDP).
This new step follows data from the United Nations Conference on Trade and Development (UNCTAD), which indicates that the cost Rwanda incurs to import food has significantly increased in recent years. Between 2019 and 2021, Rwanda spent an average of $655 million annually on food imports, a figure that nearly doubled compared to the $352.4 million spent in the previous decade. This highlights the sector’s previous challenges in meeting domestic market demands, which this new funding intends to address by making agriculture a catalyst for a self-sufficient economic system.
This new project focuses heavily on implementing technology and irrigation systems, particularly in the Kayonza District, where hillside irrigation infrastructure will be constructed. These efforts aim to reduce farmers’ reliance solely on rainfall, protecting them from the droughts and intense heat that frequently affect the area. In addition to crop farming, the project will support the development of poultry and small livestock farming to help rural citizens diversify their income sources and protect them from hunger in the event of crop failure due to disasters.
On the other hand, the Government of Rwanda has increased domestic investment by supporting farmers. For the 2025/2026 agricultural season, the government has allocated 75 billion Rwandan Francs, representing a 38.8% increase compared to the previous season. These funds will support the agricultural input program to ensure farmers can access seeds and fertilizers at affordable prices, thereby shielding them from the price fluctuations of these materials on the volatile international market.
This new partnership reinforces a relationship between Rwanda and IFAD that has spanned over 40 years. Since 1981, the fund has provided support valued at approximately $791 million through 21 rural development projects. These projects have reached over 1.5 million households nationwide, playing a vital role in poverty reduction and building resilience among rural populations to transform agriculture into the engine of the national economy for the future.
