Kigali Hosts Major Anti-Poverty Agreement
The Government of Rwanda has entered a major new partnership with global nonprofit GiveDirectly, signing a Poverty Acceleration Co-Financing Basket Fund Framework Agreement aimed at significantly reducing poverty in the country’s most vulnerable communities.
The agreement, signed today, establishes a five-year strategic collaboration focused on accelerating poverty reduction through targeted district-level investments and large-scale direct cash support to households.
A Basket Fund Designed for Impact
At the heart of the agreement is the creation of a dedicated Basket Fund, a pooled financing mechanism designed to coordinate resources from government, development partners, and philanthropic contributors.
Officials say the fund will channel investments into the five districts with the highest poverty levels, combining direct financial support with locally driven economic programs intended to help families move sustainably out of poverty.
The initiative aims to mobilize more than $150 million over the next five years, making it one of the largest structured cash-plus development partnerships in Rwanda’s poverty reduction efforts.
Direct Support Meets Long-Term Development
The partnership blends direct cash transfers with GiveDirectly’s core model with Rwanda’s community-based development systems. The approach focuses on “graduation” strategies, where households receive both financial assistance and structured support designed to build resilience and income stability over time.
Support is expected to include:
- Direct household cash transfers
- Local economic empowerment programs
- District-led planning and monitoring
- Capacity-building initiatives for sustainable growth
By aligning national policy with innovative delivery models, both partners aim to maximize measurable outcomes in poverty reduction.
Aligned With Rwanda’s National Development Vision
The agreement is closely tied to Rwanda’s Second National Strategy for Transformation (NST2), which prioritizes inclusive growth and improved living standards.
Government officials emphasized that the partnership reflects a shift toward data-driven and results-based approaches, combining public policy leadership with private and philanthropic financing.
The initiative is expected to contribute significantly toward national targets on poverty reduction, rural transformation, and social protection.
Ambitious Poverty Reduction Targets
Under the framework, the partners aim to reduce poverty by 25 percent across the five targeted districts within five years. If achieved, the program could become a model for large-scale poverty interventions across Africa and beyond.
Observers note that Rwanda’s strong track record in public sector coordination and digital governance could play a key role in ensuring the program’s success.
A Model for Public-Private Collaboration
The deal underscores Rwanda’s growing reputation as a testing ground for innovative development partnerships that combine government leadership with global philanthropic capital.
For GiveDirectly, the agreement represents one of its most structured collaborations with a national government, signaling a deeper shift toward institutional partnerships that scale direct cash transfer models within national development systems.
