• IFAD approved $78.5 million to support Rwanda’s agricultural transformation and climate resilience.

• Agriculture employs about 64.5% of Rwanda’s population and contributes roughly 25% of GDP.

• Rwanda increased its 2025–2026 farm input subsidy budget by 38.8% to 75 billion Rwandan francs.

The Government of Rwanda and the International Fund for Agricultural Development signed a $78.5 million financing agreement on February 24. The agreement aims to fund the transformation of Rwanda’s agricultural sector.

The initiative targets poverty reduction, food security improvement, climate resilience strengthening, and higher purchasing power for rural households.

Today, the Government of Rwanda and @IFAD signed a $78.5 million financing agreement to transform agriculture.

This funding will support:
? Kayonza Hillside irrigation
?Small livestock value chains

The objective is to reduce poverty, improve food security, increase… pic.twitter.com/vSZGh22Yr9

— Ministry of Finance & Economic Planning (@RwandaFinance) February 24, 2026

The project will support hillside irrigation in Kayonza district. The program will also develop small livestock value chains to diversify income sources and stabilize rural livelihoods.

As a result, authorities aim to reduce vulnerability to climate shocks while increasing agricultural productivity.

Agriculture remains economically significant but structurally fragile. Climate shocks continue to limit output and constrain food availability.

Domestic production struggles to meet demand, which increases reliance on imports. Between 2019 and 2021, Rwanda recorded average annual agricultural imports of $655 million, compared with $352.4 million between 2012 and 2014, according to the United Nations Conference on Trade and Development.

To address these constraints, the Rwandan government allocated 75 billion Rwandan francs ($51.5 million) to the national agricultural input subsidy program for the 2025–2026 farming season.

The allocation represents a 38.8% increase compared with the previous season.

IFAD established its partnership with Rwanda in 1981. The institution co-financed 21 rural development programs and projects through 2024.

IFAD committed a total of $791 million to these initiatives, which benefited more than 1.5 million households. The programs focused on poverty reduction and climate resilience.

This article was initially published in French by Ingrid Haffiny

Adapted in English by Ange J.A de Berry Quenum