Rwanda secures US$78.5M IFAD deal to strengthen agriculture
New funding will support irrigation, livestock and climate action in rural districts.
RWANDA – Rwanda has signed a US$78.5 million financing agreement with the International Fund for Agricultural Development (IFAD) to strengthen its farm sector and protect rural incomes from climate shocks.
The agreement, signed on February 24, will fund irrigation on the hills of Kayonza district and support small livestock value chains. Officials say the project will help reduce poverty, improve food security and raise incomes for rural families.
Agriculture employs about 64.5 percent of Rwanda’s population and contributes close to 25 percent of its gross domestic product, according to the Rwanda Development Board. Yet heavy reliance on rainfall continues to affect yields and food supply.
Local production has struggled to meet demand. Food imports averaged US$655 million per year between 2019 and 2021, up from US$352.4 million between 2012 and 2014, based on data from the United Nations Conference on Trade and Development.
To respond, the government has set aside 75 billion Rwandan francs for the 2025 to 2026 national input subsidy program. That equals about US$51.5 million, marking a 38.8 percent increase from the previous season.
Long standing partnership
IFAD has worked with Rwanda since 1981. The Fund has co financed 21 rural development programs through 2024, with total funding of US$791 million. These programs have reached more than 1.5 million households and focused on poverty reduction and climate resilience.
The new financing comes days after IFAD President Alvaro Lario spoke at the Munich Security Conference in Germany. He warned that weak food systems threaten global stability.
“Fragile food systems pose an underestimated risk to global stability,” Lario said.
He urged leaders to treat land and water as core security issues. “Access to productive land and reliable freshwater must be prioritized. Land and water deserve as much attention as rare minerals, if not more, as they are key to global stability,” he added.
Lario stressed that stronger rural economies reduce tension and forced migration. “When rural communities have access to productive land and water, food security improves, conflicts over resources decrease and economic opportunities arise,” he said.
Through the new Rwanda agreement, IFAD and the government aim to strengthen farm output, reduce reliance on imports and protect rural households from climate risks.
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