Rwanda secures major IFAD Investment to strengthen agriculture and irrigation

The Government of Rwanda has secured significant financial support to strengthen its agricultural sector, with a strong focus on improving irrigation and natural resource management in rural communities.

The country has obtained US78.5mn, equivalent to more than Rwf110 billion, in financing from the International Fund for Agricultural Development to advance agricultural development and resilience.

The financing agreement was signed back in February 2026 by Yusuf Murangwa, Rwanda’s Minister of Finance, representing the government, and Dagmawi Habte-Selassie, IFAD Country Director, representing the organisation. The funding will support the second phase of the Kayonza Irrigation and Integrated Watershed Management Project, widely known as KIIWP2. The programme will focus on expanding irrigation systems and strengthening watershed management across the district.

A major portion of the investment will benefit farmers in Kayonza District, where agriculture is a key source of livelihood. By improving irrigation infrastructure, the project will help ensure farmers have more reliable access to water. This is particularly important in a region where agricultural production is increasingly affected by climate variability. Better water management will allow farmers to maintain productivity while protecting vital natural resources.

The project also includes support for small livestock value chains. This will open up additional income opportunities for farming households and encourage diversification of rural livelihoods. By supporting multiple sources of income, the programme aims to strengthen the economic stability of rural communities.

Beyond improving agricultural infrastructure, the initiative is designed to tackle several broader challenges facing the sector. It seeks to reduce poverty, improve food security, strengthen climate resilience and increase incomes among rural populations. These goals align closely with Rwanda’s long term development priorities.

Agriculture remains a cornerstone of the Rwandan economy, but the sector faces growing pressures. Unpredictable weather patterns often disrupt harvests, while domestic production has struggled to keep pace with rising food demand. According to the United Nations Conference on Trade and Development, Rwanda’s agricultural imports averaged US$655mn annually between 2019 and 2021, compared with US$352.4mn between 2012 and 2014.

Alongside the IFAD support, the government has committed 75 billion Rwandan francs to the national agricultural input subsidy programme for the 2025 to 2026 farming season. This represents a 38.8 percent increase compared with the previous season.

IFAD has worked with Rwanda since 1981. By 2024, the organisation had co financed 21 rural development programmes, committing US$791mn and supporting more than US$1.5mn households.

These efforts also support the country’s Fifth Strategic Plan for Agriculture Transformation, known as PSTA 5, which runs from 2024 to 2029 and focuses on building sustainable and resilient agri food systems while strengthening food security and economic growth.