Rwanda Secures $1 Billion in South Korean Loans for Development Projects

Rwanda's Finance Ministry announced a $1 billion concessionary loan from South Korea for projects in transport, healthcare, and education, effective 2024-2028. This agreement doubles the previous $500 million deal. President Kagame, visiting South Korea, helped secure the funding, critical to Rwanda's upcoming budget.

In a significant development, Rwanda's Finance Ministry announced on Friday that it has secured a $1 billion concessionary loan from South Korea. The funds are slated to support a range of projects, including those in transport, healthcare, and education, over the period from 2024 to 2028. This new agreement effectively doubles the previous four-year deal of $500 million, which was anticipated to conclude at the end of 2026.

The commitment from South Korea comes as Rwanda's government has outlined a total of 1.32 trillion Rwandan francs ($1.02 billion) in external loans for the 2024/25 budget. The funding is seen as pivotal for the nation's development agenda. President Paul Kagame, who attended a summit in South Korea last June and met with President Yoon Suk Yeol, played a key role in securing this crucial financial support.

With these funds, Rwanda aims to bolster its infrastructure and public services, marking a significant step towards achieving its developmental goals. The exchange rate at the time of the announcement was $1 to 1,299.7000 Rwandan francs.

(Disclaimer: With inputs from agencies.)