The Government of Rwanda has signed a five-year partnership agreement worth more than $150 million with GiveDirectly, a nonprofit organization known for delivering direct cash transfers to low-income households. The initiative is designed to speed up poverty reduction efforts, particularly in the country’s most vulnerable communities.
At the center of the agreement is the creation of a joint financing mechanism called the Poverty Acceleration Co-Financing Basket Fund. The fund will combine resources to support both direct financial assistance to households and complementary development investments in the five districts with the highest poverty levels. Authorities expect the program to reduce poverty in those areas by at least 25% over the next five years.
The partnership builds on Rwanda’s steady progress in tackling poverty over the past decade. National data show that the poverty rate declined to 27.4% in 2024, compared to 39.8% in 2017, reflecting sustained government-led reforms and social protection programs. However, poverty remains more pronounced in rural regions, prompting the need for more targeted and scalable solutions.
GiveDirectly has been active in Rwanda since 2016 and has distributed more than $100 million to over 220,000 households across 22 districts. The organization’s experience with large-scale cash transfer programs is expected to play a central role in delivering measurable results under the new agreement.
The initiative also aligns with Rwanda’s Second National Strategy for Transformation (NST2), which prioritizes faster poverty reduction and improved living standards. By combining public policy with philanthropic funding and direct household support, the government aims to strengthen its social protection system while accelerating economic inclusion for the country’s poorest citizens.
