China has offered to relieve Rwanda of a $7.1 million debt or 50 million RMB Yuan on loan to build the 6.36-kilometer Masaka-Kabuga road under the Kigali urban road upgrading project.
A statement released by Rwanda denotes that the $7.1 million debt relief is a part of China’s pledge to relieve its debt in impoverished African nations. The statement reveals that the move is part of China’s decision to cancel the outstanding interest-free loan in accordance with the agreement on economic and technical cooperation between the two countries.
The Rwandan Minister for Finance and Economic Planning Uzziel Ndagijimana said on Monday after signing the debt cancellation agreement, that “the two countries enjoy a healthy bilateral cooperation. This is evidenced by the substantial contribution of the Republic of China towards Rwanda’s development aspirations. The agreement we signed today cements this relationship.”
During the debt relief signing, China was represented by its Rwandan ambassador Wang Xuekun.
“China hopes, by offering this financial support, to make a contribution to Rwanda's all-around transformation and recovery from the malign impact of the Covid-19 pandemic. In the future, China will work with Rwanda for deeper practical cooperation in various fields under the Belt and Road Initiative framework to deliver more benefits to the two peoples,” Wang said in a statement.
Speaking further after the signing, the Rwandan Minister noted that Rwanda has benefitted tremendously from its relationship with China.
Some of the economic sectors in Rwanda that have experienced significant development via its China deals include infrastructure, energy, education, and health.
“The two countries enjoy healthy bilateral cooperation. This is evidenced by the substantial contribution of the Republic of China towards Rwanda’s development aspirations. The agreement we signed today cements this relationship,” Ndagijimana said.