Rwanda Secures $1 Billion in Concessionary Loans from South Korea for Development Projects
The Rwandan Finance Ministry announced on Friday that South Korea has awarded Rwanda $1 billion in concessionary loans to support projects in several sectors, including transport, healthcare, and education.
This new agreement for 2024-2028 doubles and replaces a previous four-year $500 million deal that was set to conclude at the end of 2026.
In a statement, the finance ministry highlighted the significance of this enhanced financial support, which will play a crucial role in advancing Rwanda’s development agenda.
The government had previously indicated in May that 1.32 trillion Rwandan francs ($1.02 billion) of the 2024/25 budget would be sourced from external loans.
Rwanda’s President Paul Kagame was among several African leaders who attended a summit in South Korea in early June, where discussions with South Korean President Yoon Suk Yeol were held.
These high-level meetings have evidently borne fruit, resulting in the substantial financial commitment from South Korea.
The additional funding is expected to significantly bolster Rwanda’s efforts in improving infrastructure, enhancing healthcare services, and advancing educational opportunities, aligning with the country’s strategic development goals.
As of the current exchange rate, $1 is equivalent to 1,299.7000 Rwandan francs.
