Minister of State for National Treasury, Godfrey Kabera (left)
Kigali, October 6, 2025 — The Arab Bank for Economic Development in Africa (BADEA) has granted Rwanda a concessional loan worth $45 million (approximately Rwf65.1 billion)to support the country’s water infrastructure and private sector growth.
The funding is divided into two components: $20 million (Rwf28.9 billion) for the expansion and distribution works at the Karenge Water Treatment Plant in Rwamagana District, and $25 million (Rwf36.2 billion) to be channeled through the Development Bank of Rwanda (BRD) to support small and medium-sized enterprises (SMEs).
The financing agreement was today signed in Kigali by Minister of State for National Treasury, Godfrey Kabera, and BADEA Director General, Abdullah Almusaibeeh, in the presence of BADEA Board Chairman, Fahad Abdullah Aldossari.
Boosting Water Supply in Eastern Rwanda:
The Karenge Water Treatment Plant, which currently operates at 18% of its full expansion capacity, plays a key role in supplying clean water to the Eastern Province and Kigali City.
The new loan will help accelerate its ongoing expansion — increasing both water processing and distribution capacity.
Dr. Asaph Kabaasha, Director General of the Water and Sanitation Corporation (WASAC), said the support will fund the construction of water reservoirs and pipelines to improve storage and delivery to communities.
“Currently, the Karenge plant processes 12,000 cubic meters of water per day, but the ongoing expansion will add 36,000 cubic meters. This funding will allow us to distribute that additional capacity efficiently,” Dr. Kabaasha said.
“By increasing reservoirs, we’ll be able to store water during low-demand periods and supply it consistently during dry seasons — a long-term solution to water shortages.
Financing SMEs and Job Creation:
The second tranche of the loan, worth $25 million, will be managed by the Development Bank of Rwanda (BRD) to strengthen financing for local enterprises — with a particular focus on women, youth, and export-oriented businesses.
Kampeta Sayinzoga
Kampeta Sayinzoga, BRD Chief Executive Officer, said the financing will help bridge the funding gap for Rwanda’s private sector and enhance its capacity to compete regionally and globally.
“The country has ambitious goals, and while part of the financing goes through government, another portion must reach the private sector,” Sayinzoga explained.
“There is still a large number of businesses seeking affordable credit. This loan helps us mobilize resources to empower entrepreneurs and drive sustainable growth.”
Rwanda’s Debt and Partnership Outlook:
After signing the agreement, State Minister Kabera described the loan as a concessional facility, emphasizing that Rwanda remains in a strong position to service its debt.
“It’s a good loan — concessional and affordable. Rwanda continues to meet all its debt obligations, and international institutions, including the IMF, have confirmed our debt remains sustainable,” Kabera said. 
BADEA Board Chairman, Fahad Abdullah Aldossari, reaffirmed the bank’s long-standing partnership with Rwanda, which dates back to 1974, noting that BADEA has already invested more than $300 million in Rwanda’s development programs.
“We are proud that BADEA-supported projects have had visible positive impacts in Rwanda’s infrastructure and economic development,” Aldossari said.
“We will continue supporting the country’s progress, particularly in expanding SME financing and infrastructure development.”
Strengthening Long-Term Ties:
BADEA has financed several of Rwanda’s major infrastructure projects, including the construction of the Huye–Kitabi, Nyagatare–Rukomo, and Rubengera–Gisiza roads, all nearing completion.
Officials from both sides said the new financing underscores a shared commitment to promoting inclusive growth, water security, and private sector competitiveness in Rwanda.
Initial reporting by: Abdul Tarib
