The deal, signed on Wednesday, January 22, 2025, was announced in a statement on the website of the Ministry of Finance and Economic Planning in Rwanda.

According to the statement, the funds will be directed towards two major projects: the construction of the Giseke Dam in the Gisagara District and an irrigation initiative targeting 2,640 hectares of farmland in the same region.

The irrigation project is projected to impact approximately 915 households, totaling 4,578 people. 

These households are expected to use the infrastructure to enhance their agricultural activities. 

The output from the project is also anticipated to benefit local markets in Gisagara and surrounding areas through the sale of farm produce.

The Gisagara District, located in southern Rwanda, is known for its extensive rice farming. It also produces cassava, green bananas, potatoes, sorghum, and maize. 

These agricultural activities form part of the broader development focus in the district, particularly in improving irrigation infrastructure to address the country’s predominantly rain-dependent farming practices.

Data from Rwanda’s Ministry of Agriculture show that the country has an irrigation potential of 589,711 hectares, with 47% of this land located in marshes and the rest on hilly terrain. 

By 2018, only 48,508 hectares—around 7.5% of this potential—had been developed for irrigation.

The government continues to invest in irrigation systems to increase agricultural productivity and reduce dependence on rainfall.

Agriculture is a cornerstone of Rwanda’s economy, contributing 27% to the national GDP and employing 56% of the active workforce. 

The latest loan complements ongoing efforts to expand irrigation systems across the country, a key strategy for addressing food security and boosting rural incomes.