Chinese external assistance to Rwanda

Abstract

The entry of China as a major actor in the aid system not only presents new opportunities and new possibilities to Rwanda, but also challenges Rwanda’s long-term development in very fundamental, but unexplored, ways. The aim of this paper is to contribute to a much needed process of understanding China’s engagement with Rwanda. Specifically, the study assesses the form and content of Chinese aid to Rwanda to provide some insights into the potential impact of Chinese aid. Further, the study explores China’s international role with reference to Rwanda to answer the question whether China can, in fact, be considered as true and honest partner and if so how to maximise the benefits from the relationship based on new empirical research and the collection of new data. Using a triangulation of methods such as quantitative data, interviews with key stakeholders, and existing literature; the study shows that China – Rwanda friendship and cooperation is both a source of investment, jobs creation, and technology transfer. China’s assistance has helped to address some challenges in key sectors such as roads, agriculture, services, building and construction. The study further highlights some inconsistencies in China’s assistance policy. Tying its assistance to its own developmental needs such as advancing Chinese companies interest limits technologies and skills transfer and minimises the spillover effects of China funded projects. The study suggests that Chinese government should embark on true friendly and fruitful cooperation with Rwanda by untying its assistance to enhance its effectiveness and adhere to some of the Paris Declaration Principles.

Key words: China, Rwanda, Economic development, Official Development Assistance, aid effectiveness, aid policy.