KIGALI, Aug. 4 (Xinhua) -- Rwanda and the European Union on Tuesday signed a financing agreement for 40 million euros (about 67 billion Rwandan francs) to support Rwanda's efforts to transform the agriculture sector into a modern, inclusive, and climate-resilient sector.
The Ministry of Finance and Economic Planning said in a statement that the agreement, titled "HANGARIBIHE: Transformational Climate-Smart and Inclusive Agriculture in Rwanda," is a five-year program.
The program will provide 36 million euros in budget support to strengthen national agriculture and environment sector priorities, alongside 4 million euros in complementary support for technical assistance, capacity building, and studies, according to the statement.
"This signed financing agreement is a strategic partnership for Rwanda's agricultural transformation. It will build a modern, productive, and climate-resilient sector by driving inclusive productivity gains for smallholders, cooperatives, women, youth, and SMEs, while mandating climate-smart and sustainable production practices," Yusuf Murangwa, Rwandan Minister of Finance and Economic Planning is quoted as saying in the statement.
The support will contribute to the implementation of Rwanda's National Strategy for Transformation (NST-2), the Fifth Strategic Plan for Agriculture Transformation (PSTA-5), and environment sector priorities, according to the statement.
It will focus on increasing investment in agriculture, expanding irrigation and sustainable land management practices, strengthening climate resilience, restoring degraded ecosystems, and improving climate information systems to support evidence-based decision-making.
"This program marks another important milestone in the long-standing partnership between the European Union and Rwanda. By building on our previous cooperation, it will help turn Rwanda's climate-smart agriculture ambitions into tangible results for farmers, rural communities and future generations," Belén Calvo Uyarra, the EU ambassador to Rwanda is quoted as saying in the statement. ■