Kigali, Rwanda – The African Development Bank (AfDB) has announced a $300 million investment in projects aimed at boosting agriculture in Rwanda, part of a broader effort to strengthen one of the country’s most profitable sectors. The announcement came during the bank’s annual talks with the Rwandan government and other development partners, where discussions focused on reviewing AfDB-funded projects, evaluating progress, and identifying challenges and opportunities for improvement.
This new commitment builds on a long history of partnership, as the AfDB has invested $2.5 billion in Rwanda over the past two years, supporting 28 projects primarily focused on infrastructure, including water and sanitation, energy, and transportation. The announcement also aligns with a larger planned investment of over $400 million in Rwanda’s agriculture sector over the next three years, reflecting a strategic pivot toward productive sectors.
A Strategic Shift: From Infrastructure to Agriculture
AfDB’s active portfolio in Rwanda has grown significantly—from $1.5 billion in 2023 to $2.5 billion in 2026, with the number of projects increasing from 26 to 28. However, the portfolio remains heavily concentrated in infrastructure, with water and sanitation accounting for 34%, energy 30%, and transport 16% of projects.
Aïssa Touré Sarr, AfDB’s Country Manager for Rwanda, confirmed that about 85% of those projects are currently being implemented. She credited the progress to strong collaboration with the Rwandan government, which she said has allowed the bank to play a key role in the country’s development.
“These discussions help us review how far we’ve come in implementing our projects, identify the challenges we’ve faced, and make sure our initiatives continue contributing to Rwanda’s development.” – Aïssa Touré Sarr
Touré Sarr said agriculture will be a key focus going forward, following a request from the Rwandan government to invest more in agro-processing and irrigation.
“After the government asked us to increase support for agriculture, we allocated $300 million for irrigation initiatives.” – Aïssa Touré Sarr
The Mutara Agricultural Development Project: A Legacy of Transformation
The AfDB’s commitment to Rwanda’s agriculture is not new. The Mutara Agricultural Development Project (Phase I), approved in 1990, represents an early example of the bank’s support for the sector. The project aimed to:
- Develop and farm 1,470 hectares under irrigation for rice and soybeans
- Provide extension services to 20,300 farm families on about 14,000 hectares of rainfed farmland
- Improve traditional pastures over 14,800 hectares
- Establish a drinking-water system intended to serve 110,000 persons
- Create jobs in agriculture and agroprocessing
The project was among the priority actions defined in Rwanda’s 4th National Economic and Social Development Plan. Its aim was to satisfy food requirements, ensure better utilization of manpower resources, and protect the ecological environment through better management of its microclimatic, biological, and pedological components.
What the New Investment Means for Rwanda
The $300 million investment in irrigation initiatives represents a significant step toward modernizing Rwanda’s agriculture sector. This funding will support the following:
- Irrigation development to reduce dependence on rain-fed agriculture
- Agro-processing to add value to agricultural products
- Climate-smart agriculture to build resilience against climate change
- Job creation in rural areas
The investment aligns with Rwanda’s Second National Strategy for Transformation (NST2), which identifies agricultural modernization, private-sector-led growth, and export-oriented manufacturing as priorities.
Implementation Challenges and Solutions
While the AfDB’s portfolio has expanded significantly, implementation challenges have emerged. The bank’s 2025 Country Portfolio Performance Review noted that the proportion of projects flagged for performance problems increased to 26% in 2025 from 13% in 2023, largely because of procurement delays and weaknesses in contract management. Only 36% of the overall portfolio had been disbursed.
To address these challenges, the AfDB and Rwanda’s Ministry of Finance and Economic Planning have adopted a 2025 Country Portfolio Improvement Plan, including measures to speed up project preparation, improve contract management, and streamline procurement.
A Track Record of Impact
Despite the challenges, the AfDB’s infrastructure investments have delivered significant results:
| Sector | Achievements |
|---|---|
| Energy | 195,000+ new electricity connections |
| Transport | 300 kilometres of regional roads upgraded |
| Water | 67% of Rwanda’s population with access to clean water |
| Partnerships | $127 million mobilised from partners (AIIB, OPEC Fund) |
Emmanuel Nuwamanya, Director of Planning at the Ministry of Infrastructure, praised the AfDB for its continued partnership with Rwanda:
“We appreciate AfDB’s role in supporting projects related to water and sanitation, transportation, and energy, which help improve people’s lives and advance national development.” – Emmanuel Nuwamanya
The Way Forward: Agriculture as a Priority
The AfDB began operations in Rwanda in 1974. While most of its funding has historically gone toward infrastructure, the bank said it now plans to direct more resources toward projects that promote agricultural development. This shift reflects:
- Rwanda’s request for increased support for agriculture
- The need to rebalance a portfolio heavily concentrated in infrastructure
- The opportunity to boost agricultural production, exports, and job creation
As the AfDB continues to support Rwanda’s development, the focus on agriculture will be critical to achieving food security, economic growth, and sustainable development.
Earth Focus Network: Supporting Agricultural Transformation
At Earth Focus Network, we believe that environmental and social change is a collective movement. We connect organizations, businesses, and individuals working on sustainable agriculture, climate resilience, and food security with opportunities, partnerships, and resources.
How We Support Agricultural Transformation:
- Connecting Changemakers: We bring together farmers, agripreneurs, researchers, and policymakers
- Sharing Opportunities: Our platform centralises grants, jobs, and funding for sustainable agriculture
- Building Partnerships: We facilitate collaborations that drive agricultural innovation
- Planting Trees: Through our partnership with Here For Hope Foundation, we are committed to planting 10,000,000 trees in Rwanda by 2030 to restore degraded land and support sustainable agriculture
📢 Join the Movement
If you are working on agricultural transformation, climate-smart agriculture, or food security in Rwanda or across Africa, connect with us to access funding, partnerships, and visibility.
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Quick Reference
| Detail | Information |
|---|---|
| New Investment | $300 million for irrigation initiatives |
| Planned Investment | $400+ million over three years |
| Current Portfolio | $2.5 billion (28 projects) |
| Infrastructure Share | 85%+ (rebalancing underway) |
| Pipeline Project | $348 million Climate Smart Agriculture Programme |
| Implementation | 85% of projects currently being implemented |
| Challenges | 26% of projects flagged for performance issues |
| Impact | 195,000+ electricity connections; 67% water access |
Earth Focus Network believes the future is not something we wait for—it’s something we build together. Join us in building a sustainable agricultural future for Rwanda and Africa!
