China’s BRI projects spur economic development in Rwanda

Published:June 09,2022

By Gerald Mbanda

Road in Kigali city upgraded by China Road and Bridge Corporation (CRBC). Photo: (Africa-China Review)

 China and Rwanda celebrated 50 years of diplomatic cooperation last year 2021. The countries have strengthened cooperation in various fields for half a century. China is one of Rwanda’s largest contributors of foreign direct investments (FDI) especially in areas of manufacturing, textiles and real estate among others.

In recent years, a number of roads both in rural areas and the Rwanda capital Kigali have been constructed mainly by China Road and Bridge Cooperation (CRBC). Technological and cultural exchanges have also taken place over the years between Rwanda and China. It is worth noting that the Belt and Road Initiative (BRI) projects in Rwanda have created hundreds of jobs and therefore, improved the well-being of people’s lives.

 China is Rwanda’s largest trading partner and largest project contractor, with the bilateral trade volume in 2020 reaching US$321 million against the impact of Covid-19. A large number of China aided infrastructure facilities give a strong impetus to Rwanda’s economic and social development.

Chinese President Xi Jinping paid a historic visit to Rwanda In July 2018. This was the very first visit by a Chinese head of state, where the two sides signed 15 bilateral cooperation agreements, significantly in line with the Belt and Road Initiative (BRI).  On the infrastructure side, a lot has been achieved since the signing of the MoU. In the capital city Kigali, 54 Km road upgrading has already been completed. Another 66Km upcountry road leading to the Southern province of Huye,  is expected to be completed early July, while 13Km road leading to the new Bugesera airport on the outskirts of the capital is near completion.

In 2021, Rwanda became the first African country to export dried chili to China. 50,000 tons of dried chili will be exported to China in the next 5 years. More high-quality agricultural produces from Rwanda are expected to access China’s vast market.  Cross-border e-commerce has emerged as a new highlight of practical cooperation between Rwanda and China. Rwanda’s coffee beans are popular on China’s e-commerce platforms. Each kilo of beans sold in China can bring coffee farmers four more dollars than before.

 It should also be noted that every year, hundreds of Rwandan students received Chinese scholarships to study in China. This is an opportunity not only for the students to gain knowledge in different fields, but it also enhances people to people diplomacy and cultural understanding Smart Education project through use of ICT sponsored by China is going to start soon in Rwanda enabling a number of universities and schools to get access to affordable internet. Chinese companies are also training Rwandan youths to master computer technology and e-commerce through online and offline methods.

In the medical field, China dispatches medical doctors every year to work with their Rwandan counterparts in two hospitals in Ngoma district in eastern province and Masaka hospital near the capila city Kigali. Currently, Masaka hospital which is commonly referred to as “Chinese hospital” by the local population, will soon be expanded. Upon completion, it is expected to be the largest hospital in Rwanda holding 837 beds and treating hundreds of out patients. Since the outbreak of COVID-19, China has provided several batches of personal protective equipment (PPE) to Rwanda, donated over 500,000 doses of vaccines, while medical experts shared with their Rwandan counterparts experience on the fight against COVID-19 pandemic.

Rwanda has an ambitious plan of industrial development focusing on promoting and producing made in Rwanda products as well as striving to be among the first countries in Africa to achieve universal electrification and the first to achieve less than 50 percent reliance on traditional cooking fuels as enshrined in its National Strategy for Transformation (NST1). China is helping Rwanda to increase power generation through construction of the Nyabarongo II power station project.

 On February 7, 2020,the Government of Rwanda and the People’s Republic of China signed a framework agreement that will allows China, through China Exim Bank to extend a concessional loan worth US$ 214 million (approximately Frw 203 billion) to facilitate the construction of Nyabarongo II Hydropower Project. Construction of the power station commenced in April 2022. Nyabarongo II Hydropower Project will have three components: 43.5 MW Hydro power plant, a Substation and 110KV transmission line covering 19.2 km.

The Belt and Road Initiative, the Forum on China-Africa Cooperation (FOCAC), the “Global Development Initiative” and the “the Initiative on Partnership for Africa’s Development,” represent important platforms for China and Rwanda to further deepen comprehensive cooperation. As President Xi Jinping pointed out during his visit, China-Rwanda friendship is an epitome of China-Africa friendship.

China and Rwanda have strengthened cooperation in the spirit of sincerity, practical results, and good faith for mutual benefit. Win-win outcome and common development through BRI projects will lead the two countries to build a community with a shared future.

Gerald Mbanda is a Researcher and publisher on China and Africa