The Government of Rwanda signed a five-year framework agreement with the NGO GiveDirectly on February 24 to accelerate poverty reduction through a co-financing mechanism.
The partnership established the Poverty Acceleration Co-Financing Basket Fund, aiming to mobilize more than $150 million over five years. Funds will be directed toward targeted investments and direct cash assistance in the five districts with the highest poverty rates, with the goal of reducing poverty by 25% in those areas.
GiveDirectly hailed the agreement as a “major step forward” and emphasized the program’s ambition and long-term impact, describing it as a bold commitment to poverty reduction in Rwanda.
Rwanda has made notable progress in recent years, with the national poverty rate declining to 27.4% in 2024 from 39.8% in 2017, according to the Seventh Integrated Household Living Conditions Survey (EICV7). Despite these gains, rural areas continue to experience high poverty levels.
Since 2016, GiveDirectly has distributed over $100 million to more than 220,000 households across 22 districts in Rwanda. The new initiative aligns with Rwanda’s Second National Strategy for Transformation (NST2), which aims to further reduce poverty nationwide through targeted programs and economic development.
