Loan of US$120 million from Korea for Rwanda road works

A loan of US$120 million from South Korea will pay for Rwanda road works.
Finance & Funding / December 14, 2023 1 minute Read
By MJ Woof
A new road project in Rwanda will be paid for by a South Korean loan – image courtesy of © Ebastard129|Dreamstime.com

A loan worth US$120.5 million from South Korea will pay for work to the road linking Rwanda’s capital, Kigali, with Muhanga. The loan has been agreed following talks between the Rwandan Government and the Korea Export-Import Bank (Korea Eximbank).

The project involves repairs, improvements and maintenance works for the road connection. The RN1 route will be widened along a 12km stretch so that it features two lanes in either direction for this section. Muhanga lies at an altitude of 1,800m and is around 45km to the South West of Kigali, with general upgrade works being carried out all along the route between the two cities. In addition two bridges will be constructed.

The work is highly important for Rwanda’s economy as the tiny landlocked country is sandwiched in between its much larger neighbours, Uganda, Tanzania and the Democratic Republic of Congo as well as the equally small Burundi and relies heavily on its road transport links. Improving the road system will provide a crucial boost to transport within the country as well as to the surrounding nations.

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