Rwanda has signed a US$78.5 million financing agreement with the International Fund for Agricultural Development (IFAD) to strengthen its agricultural sector, officials said Wednesday.
The funding will support the Kayonza hillside irrigation project in eastern Rwanda, a region that has suffered prolonged droughts over the past three years, according to the Rwanda Meteorology Agency. The initiative aims to expand cultivated land, improve water management, and increase farm productivity.
“The project will construct a dam with the capacity to store one million cubic meters of water, ensuring reliable irrigation for local farmers,” the Rwandan Ministry of Agriculture said in a statement.
In addition to irrigation, the program will support small livestock value chains, improve agricultural climate resilience, and enhance rural livelihoods. The Ministry of Finance and Economic Planning said the initiative is part of broader efforts to reduce poverty, strengthen food security, and increase incomes for rural households.
Kayonza District, where the project is located, has experienced some of the lowest rainfall levels in Rwanda in recent years, causing crop losses and economic hardship for farmers. By expanding irrigation infrastructure, the government hopes to mitigate the impact of climate variability and improve year-round agricultural output.
IFAD has long supported Rwanda’s agricultural sector through financing and technical assistance, targeting smallholder farmers and climate-smart initiatives. This latest agreement marks one of the largest recent investments in irrigation and livestock development in the country.
Officials emphasized that the project aligns with Rwanda’s national development agenda, which prioritizes sustainable agriculture, climate adaptation, and rural economic growth.
“The financing will not only improve productivity but also enhance the resilience of farming communities to climate shocks, creating a more sustainable agricultural system,” the Ministry of Finance and Economic Planning said.
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The project is expected to benefit thousands of smallholder farmers in eastern Rwanda, providing both improved irrigation facilities and training in modern farming techniques. By integrating crop and livestock production, the initiative seeks to diversify incomes and reduce vulnerability to climatic stress.
Construction of the dam and related infrastructure is scheduled to begin later this year, with full implementation of the project expected over the next several years.
Rwanda, like many African countries, faces growing challenges from climate change, including erratic rainfall, droughts, and soil degradation. Investments such as the Kayonza irrigation project aim to build climate resilience while supporting economic development in rural areas.
The IFAD financing underscores international support for Rwanda’s agricultural transformation, reflecting global recognition of the sector’s role in poverty reduction, food security, and sustainable development.
