The German government has unfrozen its aid to Rwanda worth Euro 21 million, (about Rwf17.5bn) exactly six months after suspending it over a controversial UN Group of experts report alleging Rwanda's support for rebels in Eastern DRC.
"We are removing the blockade and Germany is now reinstating the bilateral budget aid which will be converted to programme aid and the money will be paid out in the next few days," the Germany Ambassador to Rwanda, Peter Fahrenholtz told The New Times at the weekend.
"On the multilateral issue, we are in favour of dispensing the funds as sector budget support but important thing is that we are having a good progress and the German government is now willing to move ahead and help Rwanda in terms of development. We are the first one country to do this."
He, however, said that an official declaration will soon me made from Berlin.
The development came at a time when the Foreign Affairs Minister, Louise Mushikiwabo is in Germany where she addressed the chairpersons and members of the Committees on Economic Cooperation and Development, Foreign Affairs and Human Rights & Humanitarian Aid in Germany's Bundestag, the country's legislative assembly.
Reacting to the aid reinstatement, Minister Mushikiwabo said Rwanda welcomes the restoration of development aid by Germany to priority sectors including economic development, vocational training and decentralisation.
"Our two governments had agreed to partner in these three sectors back in November 2011 and we are delighted this support is back on track."
Since economic cooperation began in 1962, Germany has so far made available EUR 642 million (Rwf537.7bn) in development cooperation.