Rwanda gets US.$37 million from China

Rwanda gets US.$37 million from China
03-08-2009

BEIJING – Following a two-day bilateral summit that was concluded in Beijing last week, China has given Rwanda interest-free loans amounting to $ 37 million most of which will fund the Kigali road network rehabilitation project.

Other projects discussed included an agricultural demonstration centre and two rural primary schools, the new State House project, provision of anti-malaria drugs, an anti-Malaria center and the dispatch of Chinese volunteers to Rwanda.

The road network was allocated $ 32 million.

“The Rwandan Ministry of Finance and Economic Planning and the Exim Bank of China signed the related loan agreement. Both sides wish to strengthen coordination in the implementation process of the project,” reads part of a nine-page summary of the summit’s minutes.

The meeting of the “Joint Committee on Economic, Technical and Trade Cooperation” between the two Governments was part of the routine bilateral summits held every two years.

In addition, a separate interest-free loan agreement totaling $ 5.8 million was also granted to Rwanda.

“The loan shall be utilized to implement project(s) to be agreed upon through consultations between the two governments. Specific matters shall be stipulated in agreements(s) to be signed subsequently by the two sides,” reads article II of the joint agreement, a copy of which is contained in the nine-page text.

The two delegations discussed bilateral trade, investment cooperation and economic and technical cooperation. The trade imbalance in favour of China was also acknowledged.

“The Chinese side is committed to encourage the Chinese enterprises to import from Rwanda, commodities that are needed on the Chinese market, such as coffee, tea, minerals, etc,” says part of the document. On investment cooperation, both sides agreed to work “with common efforts” to facilitate potential enterprises to invest in Rwanda and encourage Chinese investors to participate in Rwandan infrastructure such as roads, electricity, telecommunications and manufacturing.

Foreign Affairs Permanent Secretary, Eugene Munyakayanza, led the Rwandan side with representatives from the ministries of Finance, Health, Agriculture, Education, Infrastructure and Trade while China’s delegation was led by Vice-Minister in the Ministry of Commerce Fu Ziying.

The next bilateral summit will be held in Kigali.