The Board of Directors of the African Development Bank Group has approved additional financing of €45.4 million to Rwanda for construction of a climate resilient irrigation system drawing on the Muvumba multipurpose dam reservoir.
Under the Muvumba Multipurpose Water Resources Development Program, the additional Bank Group financing-- comprising a €17.66 million loan from the African Development Fund, the Bank Group's concessional arm and a €27.74 million loan from the African Development Bank-- will support construction of a climate-resilient irrigation system covering 3,073 hectares of agricultural land.
The Bank's contribution to the project is thus rising to €166.9 million of a total program value of €176 million. The remainder will be provided by the government of Rwanda. In October 2020, the African Development Bank approved a loan of €121.50 million. Construction of the dam and hydropower plant, the program's main component began in October 2023. By end March 2026, it was more than 50% complete.
"This programme is one of the flagship projects for the Government of Rwanda supporting its agenda around the food-energy-water nexus whereby the Muvumba dam will develop water resources for multiple uses including power generation, water for people, and food security and ecotourism," explained Mtchera Chirwa, the Bank's Director for Water Development and Sanitation Department.
The programme will contribute to increased agricultural productivity and enhanced food and nutrition security of the targeted beneficiaries in the programme area, extending food security to 26,012 people and creating more than 4,700 direct jobs, 60% of them for youth.
The program aligns with the country's Rwanda 2050 strategy and its Second National Strategy for Transformation 2024-2029. It also is aligned with the Bank's Ten-Year Strategy for 2024-2033, and the Bank president's strategic "Four Cardinal Points" vision.
Rwanda Water Resources Board, in partnership with the Rwanda Agriculture and Animal Resources Development Board, will implement the program through 2030.
