Rwanda

Cooperation between Luxembourg and Rwanda began in 1989 with an initial healthcare project. Over the years, this collaboration expanded to include rural development, education, and vocational training until 2013.

In October 2021, both countries decided to revitalise their partnership, with the signing of a memorandum of understanding for the exploration of the financial sector. Following further identification and formulation, LuxDev opened an office in September 2022. LuxDev's interventions are aligned with Rwanda’s national policies and strategies.

Despite remarkable progress, Rwanda continues to face structural challenges in achieving sustainable development. The economy remains heavily reliant on public investment and international aid, with the private sector needing further strengthening to diversify sources of growth. High energy costs, low national savings, a shortage of specialised skills, and a small domestic market limit private sector investment.

Rwanda is also highly vulnerable to climate change, experiencing irregular rainfall, rising temperatures, and droughts that threaten crop yields and livestock. 

The country’s predominantly extensive farming practices face growing food security challenges, exacerbated by population growth and soil depletion. Modernising agriculture and enhancing climate resilience are essential for ensuring food security and supporting national development.

Additionally, Rwanda struggles with high unemployment, particularly among young people and women, while industrialisation remains relatively modest. Despite significant efforts to reduce income inequality, disparities persist at the community level.

LuxDev’s interventions are implemented in collaboration with Rwandan public and private stakeholders. Our approach fosters innovation, resilience, and inclusive sustainable development while addressing key challenges facing the country.