BADEA Grants Rwanda Over Rwf 65 Billion to Boost Water and Enterprise Development

By The Inspirer.

The Arab Bank for Economic Development in Africa (BADEA) has approved a USD 45 million loan to Rwanda, equivalent to over Rwf 65 billion, to support water infrastructure and small- to medium-sized enterprises.

The funding is divided into two main components. USD 20 million (about Rwf 28.96 billion) will support the Karenge water treatment plant in Rwamagana District, enabling the expansion of water production and distribution across the Eastern Province and Kigali.

The remaining USD 25 million (roughly Rwf 36.2 billion) will be channeled through the Development Bank of Rwanda (BRD) to provide financing for women, youth, and private entrepreneurs.

Dr. Asaph Kabaasha, CEO of the WASAC Group, said the loan will also fund the construction of storage reservoirs and pipelines to improve water delivery to communities.

“When we increase storage capacity, we can store water during periods of low demand and release it when needed, particularly during dry seasons,” he said.

“Karenge currently produces 12,000 cubic meters of water, and with the expansion, an additional 36,000 cubic meters will be available to the population.”

Through BRD, the loan aims to strengthen entrepreneurship and facilitate the growth of small and medium enterprises, particularly those involved in exports and industrial activities.

Kampeta Sayinzoga, CEO of BRD, noted that the facility will empower Rwandan businesses to access the funding needed to grow and compete regionally.

“Rwanda has ambitious national development goals, requiring substantial financing. While the government provides some funds, BRD ensures that private entrepreneurs can access loans to scale up their businesses,” he said.

The signing ceremony was attended by Rwanda’s State Secretary in charge of Public Finance, Godfrey Kabera, along with BADEA executives Abdullah Almusaibeeh and Fahad Abdullah Aldossari. Kabera described the loan as a concessional facility with favorable repayment terms, reflecting Rwanda’s strong debt management and repayment capacity.

“Rwanda continues to manage its loans responsibly. All existing debts are serviced on time, giving us confidence to take on concessional financing to further national development,” he said.

BADEA has a long-standing partnership with Rwanda dating back to 1974, supporting projects totaling over USD 300 million. Fahad Abdullah Aldossari, Chairman of BADEA’s Board of Directors, said the bank remains committed to financing initiatives that deliver tangible benefits to communities, particularly small and medium enterprises.

This partnership continues to underpin Rwanda’s infrastructure development, including key road projects such as Huye-Kitabi, Nyagatare-Rukomo, and Rubengera-Gisiza.