• Rwanda signs $45M BADEA deal for water and SME financing

• $20M to expand safe water access in Kigali, Rwamagana districts

• $25M to boost private sector, support job creation and exports
  

Rwanda signed two financing agreements worth a total of $45 million with the Arab Bank for Economic Development in Africa (BADEA) on Wednesday, October 8, 2025, to enhance water security and support private sector growth and small and medium-sized enterprises (SMEs).

Government of Rwanda has secured US $45 million from @badeabank. The funding comprises:

? $20M to expand the Karenge Water Project, increasing safe water access for households.

?$25M for @BRDbank to bolster private sector development, driving job creation & economic growth.… pic.twitter.com/lRhApK7vyh

— Ministry of Finance & Economic Planning (@RwandaFinance) October 8, 2025

The first agreement, valued at $20 million, will fund the expansion of water supply and distribution networks under the Karenge Water Project. The initiative is expected to significantly improve access to safe drinking water for households in the Kigali and Rwamagana districts, while also enhancing the sector’s resilience to climate change.

The second partnership, a $25 million facility for the Development Bank of Rwanda (BRD), aims to support the expansion of the private sector and SMEs. Rwanda’s Ministry of Finance underscored the importance of the funds, calling the financing “a key driver for job creation and economic growth.”

Boosting Water Access and Private Sector

Rwanda has made substantial progress in water access, with about 90% of the population having access to improved sources of drinking water in 2023/2024, according to the National Institute of Statistics of Rwanda (NISR). Access is higher in urban areas (97%) than in rural areas (87%).

The government has set an ambitious target of achieving universal access to drinking water and sanitation by 2029. To reach this goal, it has significantly increased funding for the sector, with allocations rising from $72 million in 2022/23 to $880 million in 2023/24, according to UNICEF.

Meanwhile, Rwanda’s Private Sector Development and Youth Employment Sector Strategic Plan (PSDYE SSP) 2024-2029 seeks to build a competitive and resilient private sector to drive job creation and economic transformation. The plan focuses on five key pillars, including boosting business productivity and diversification, developing sustainable value chains, and creating a favorable export environment.

Rwanda and BADEA have maintained a partnership spanning several decades. The bank’s current portfolio in Rwanda is estimated at over $300 million, spread across sectors such as agriculture, energy, water, and transport.

Lydie Mobio