Saudi Arabia and the government of Rwanda have signed a $20 million loan to finance the country’s social and economic development.
The Saudi Fund for Development (SFD), is a Saudi Arabian government agency that provides development assistance to developing countries by financing social and infrastructure projects with the aim of improving lives and communities.
In particular, the deal is set to create a network of medium- and low-voltage lines and power distribution transformers for homes and government social services in Rwanda’s Kamonyi region.
Saudi Fund for Development’s Chief Executive Sultan Al-Marshad and Rwanda’s Minister of Finance and Economic Planning Ndagijimana Uzziel signed the agreement in the capital, Kigali.
In a report by the Saudi Press Agency on Tuesday Al-Marshad said the project would improve Rwanda’s electricity infrastructure and enhance sustainable social and economic development in the country.
“Based on the cooperation, we hope that this project will be a source of development and bring benefits to Rwanda and its people to achieve the sustainable development goals.
“He said the SFD was working effectively with Rwanda for the past 47 years. The Minister of Finance and Economic Planning, Dr. Uzziel Ndagijimana noted that the financing will contribute to electrification efforts in Kamonyi District which currently stands at 58.9 percent.”
Moreover, this is another step towards our ultimate goal of ensuring all Rwandan citizens have access to electricity by 2024,” said Dr. Uzziel.
At the completion of the project, electricity access in Kamonyi region is set to increase by 6.8 percent.
In addition, this program will benefit approximately 60,000 people and enhance among others economic growth, agricultural, and industrial activities.
Also, it will also create direct and indirect employment opportunities, improve livelihoods, support Rwanda’s economic growth, and promote sustainable living.
Al-Marshad visited the 200-bed King Faisal Hospital in Kigali, which SFD funded in 1986 and started operating in 1993.
The hospital also created direct and indirect job opportunities and improved access to healthcare in the country.
Saudi Arabia has supported Rwanda since 1976, and through the SDF has extended 11 developmental loans worth $121 million to the country for various vital projects.