The Government of Rwanda and the European Union have signed a €40 million (about Frw 67 billion) financing agreement to support the country’s efforts to transform agriculture into a modern, inclusive and climate-resilient sector.
The agreement, signed through Rwanda’s Ministry of Finance and Economic Planning (MINECOFIN), will fund a five-year programme known as HANGARIBIHE: Transformational Climate-Smart and Inclusive Agriculture in Rwanda.
Under the programme, €36 million will be provided as budget support to strengthen national priorities in the agriculture and environment sectors. A further €4 million will finance complementary activities, including technical assistance, capacity building and studies.
The initiative is part of the Team Europe Initiative on “Investing in Sustainable and Inclusive Agricultural Transformation,” which brings together the European Union and its partners to support sustainable agricultural development.
The financing is expected to contribute to the implementation of Rwanda’s National Strategy for Transformation (NST-2) and the Fifth Strategic Plan for Agriculture Transformation (PSTA-5), as well as priorities in the environment sector.
Key areas of focus will include increasing investment in agriculture, expanding irrigation and promoting sustainable land management practices. The programme will also support efforts to strengthen climate resilience, restore degraded ecosystems and improve climate information systems.
According to the Rwandan government, better climate information will help strengthen evidence-based decision-making and enable farmers and other stakeholders to respond more effectively to climate-related risks.
Speaking at the signing ceremony, Rwanda’s Minister of Finance and Economic Planning, Yusuf Murangwa, described the agreement as a strategic partnership in the country’s agricultural transformation agenda.
“This signed financing agreement is a strategic partnership for Rwanda’s agricultural transformation,” Murangwa said. He added that the programme would help build a modern, productive and climate-resilient agricultural sector while promoting inclusive productivity gains among smallholder farmers, cooperatives, women, youth and small and medium-sized enterprises.
The minister also emphasized the importance of climate-smart and sustainable production practices as part of the country’s agricultural transformation.
EU Ambassador to Rwanda Belén Calvo Uyarra said the agreement represented another milestone in the long-standing partnership between Rwanda and the European Union.
“This programme marks another important milestone in the long-standing partnership between the European Union and Rwanda,” she said, adding that the initiative would build on previous cooperation to translate Rwanda’s climate-smart agriculture ambitions into tangible results for farmers, rural communities and future generations.
The financing agreement underscores continued cooperation between Rwanda and the EU in areas including sustainable development, climate resilience and public financial management.
For Rwanda, the programme comes as the country seeks to raise agricultural productivity while making the sector better equipped to withstand climate pressures. Its focus on irrigation, sustainable land management, ecosystem restoration and climate information is intended to support a more resilient agricultural system while ensuring that transformation benefits a broad range of participants across the sector.
The five-year HANGARIBIHE programme therefore combines financial support with technical expertise and capacity building, aligning European cooperation with Rwanda’s national development and agricultural priorities.
