Rwanda Secures €20.97 Million Grant from Germany for Urban Development

The Government of Rwanda has secured a €20.97 million (approximately Rwf30 billion) grant from the German Development Bank (KfW) to support its “Green and Gender-Sensitive Public Spaces” project. The agreement was signed on Wednesday, December 18, and will help fund urban development initiatives aimed at addressing climate change challenges in Rwanda’s cities.

The new grant follows a previous €20 million agreement between the two countries, focused on green financing and climate action. Both grants are part of the Rwandan-German Climate and Development Partnership, established in 2022 to help Rwanda meet its climate adaptation and mitigation targets.

The signing ceremony, held at Rwanda’s Ministry of Finance and Economic Planning, was attended by key officials, including Yusuf Murangwa, Rwanda’s Minister of Finance, and Juliet Kabera, Director General of the Rwanda Environment Management Authority (REMA). Representatives from the German embassy in Kigali and KfW also participated.

The “Green and Gender-Sensitive Public Spaces” project aims to use nature-based solutions, such as tree planting and soil unsealing, to enhance urban resilience. The initiative seeks to tackle climate-related issues like heat retention and landslides while improving quality of life, particularly for women, and boosting urban biodiversity. REMA will oversee the project’s rollout in selected secondary cities across Rwanda.

In addition to the new grant, Rwanda has received further funding to support its climate and nature initiatives, including budget support aimed at improving relevant policies and regulations. A key focus of these efforts is the implementation of Rwanda’s newly launched Climate and Nature Finance Strategy (CNFS), which was officially unveiled on October 17.

Murangwa highlighted the importance of the funding, saying it would help Rwanda meet its climate resilience goals outlined in the National Strategy for Transformation (NST-2). “Mobilizing sufficient resources to achieve these targets will be a top priority in the near future,” he said, stressing the importance of continued international collaboration to combat climate change.

German Ambassador to Rwanda, Heike Uta Dettmann, noted the growing cooperation between the two countries, particularly since the establishment of the Climate and Development Partnership. “This partnership, now valued at over €260 million, is being implemented through KfW and GIZ, with today’s agreement marking another significant step in our shared commitment to addressing climate change,” Dettmann said.

Aisha Adedunmola

Aisha Adedunmola