By Emmanuel Nduka
The African Development Bank (AfDB) plans to invest more than $400 million in Rwanda’s agriculture sector over the next three years, as the development finance institution moves to rebalance its portfolio and channel more funding into productive sectors.
The planned investment, equivalent to about Rwf588 billion, is contained in the bank’s Rwanda 2025 Country Portfolio Performance Review Report released on Thursday, August 20.
The proposed investment is aligned with Rwanda’s second National Strategy for Transformation (NST2), which places agriculture at the centre of the country’s economic transformation and development agenda.
According to the report, the move is also aimed at reducing the bank’s heavy concentration in infrastructure projects in Rwanda.
As of January 31, the AfDB had 29 active operations in the country, comprising 27 public-sector and two private-sector projects, with total commitments of about $2.6 billion. Infrastructure projects account for 87 percent of the portfolio.
The bank said the concentration presents a significant risk and could make it more difficult to justify additional investments focused solely on infrastructure.
“In response, and in direct alignment with NST2, the Government of Rwanda has requested a strategic pivot, with the Bank expected to invest over USD 400 million in agriculture over the next three years,” the report said.
The AfDB said the reorientation would help rebalance its Rwanda portfolio, reduce concentration risks and support priority productive sectors.
The bank’s existing portfolio remains dominated by water and sanitation, which account for 34 percent, followed by energy at 30 percent. Finance represents 10 percent, transport 9 percent and multi-sector operations 11 percent.
Agriculture, communications, social and urban development collectively account for just 6 percent of the portfolio.
The AfDB said its infrastructure investments have nevertheless delivered significant development gains in Rwanda. Following the 2024 Mid-Term Review of its Country Strategy Paper, the bank reported more than 195,000 new energy connections, 300 kilometres of upgraded regional roads and access to clean water for 67 percent of the population.
The bank also mobilised $127 million in additional financing from development partners, including the Asian Infrastructure Investment Bank and the OPEC Fund, for energy and aviation skills projects.
The planned agricultural investment builds on an earlier commitment by the AfDB to increase financing to Rwanda’s agriculture sector. In 2025, the bank announced plans to inject about $300 million, equivalent to roughly Rwf432 billion, into the sector in 2026.
The latest commitment signals a broader shift in the bank’s Rwanda strategy, with greater emphasis on agriculture and other productive sectors that can support economic diversification, strengthen livelihoods and contribute to the country’s long-term development objectives.
