The African Development Bank (AfDB) plans to invest more than $400 million, approximately Rwf588 billion, in Rwanda’s agriculture sector over the next three years as it moves to rebalance a portfolio currently dominated by infrastructure.
The planned investment is outlined in the bank’s Rwanda 2025 Country Portfolio Performance Review Report, released on Thursday, August 20. The shift is aligned with Rwanda’s Second National Strategy for Transformation (NST2) and is intended to direct more financing towards productive sectors.
As of January 31, AfDB’s active portfolio in Rwanda comprised 29 operations valued at about $2.6 billion. These included 27 public-sector projects and two private-sector operations.
Infrastructure represents 87 per cent of the portfolio, a level the bank says creates concentration risks and could limit the justification for further infrastructure-only investments.
The report says Rwanda requested “a strategic pivot, with the Bank expected to invest over USD 400 million in agriculture over the next three years.”
Water and sanitation currently account for 34 per cent of AfDB’s Rwanda portfolio, while energy represents 30 per cent. Multi-sector operations account for 11 per cent, finance 10 per cent and transport nine per cent.
Agriculture, communications, social development and urban development collectively represent the remaining six per cent.
Despite the high concentration, AfDB says its infrastructure financing has delivered significant results. These include more than 195,000 new electricity connections, upgrades to 300 kilometres of regional roads and access to clean water for 67 per cent of Rwanda’s population.
The bank has also mobilised $127 million from partners, including the Asian Infrastructure Investment Bank and the OPEC Fund, to finance energy and aviation-skills projects.
AfDB had previously indicated in 2025 that it planned to direct about $300 million, approximately Rwf432 billion, towards Rwanda’s agriculture sector in 2026.
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