Reprieve for Rwanda as China cancels $7.1 million debt
China has offered Rwanda a $7.1 million debt relief or 50 million RMB Yuan on a loan used to build the 6.36-kilometre Masaka-Kabuga road under the Kigali urban road upgrading project.
According to a statement issued by Rwanda, the move is part of the Chinese government’s decision to cancel the outstanding interest-free loan in accordance with the agreement on economic and technical cooperation between the two countries.
“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,” Rwanda’s Minister for Finance and Economic Planning Uzziel Ndagijimana said on Monday after signing the debt cancellation agreement. China was represented by its ambassador to Rwanda Wang Xuekun.
Strong economic cooperation
Dr Ndagijimana acknowledged the strong economic cooperation between the two countries which has seen Rwanda benefit from China’s support in various sectors including infrastructure, energy, education and health.
China says the debt cancellation is part of the economic package announced by President Xi Jinping at the 8th Ministerial Conference of the Forum on China-Africa Cooperation.