Rwanda, a small, landlocked country in central-eastern Africa, has made notable progress in reducing poverty over the past two decades. However, recent years have seen a troubling reversal. According to the World Bank, 63.84% of Rwanda’s population lived below the international poverty line in 2016.

As Rwanda struggles to maintain its developmental gains, China has emerged as a major partner. China’s foreign aid strategy in Rwanda ranges from health, education, agriculture and infrastructure support. But are these efforts purely humanitarian or part of a broader geopolitical strategy?

China’s Anti-Poverty Measures in Rwanda

China’s foreign aid strategy in Rwanda spans multiple sectors, with significant investments to reduce poverty and support national development. In March 2025, China partnered with UNICEF to launch “Enhancing Early Childhood Development in Rwanda through South-South Cooperation.” This 18-month project targets 11 districts and aims to improve early childhood development (ECD) services, a crucial area for long-term health, education and economic outcomes.

The initiative is expected to support 2,100 children and indirectly reach 1.5 million. It also sets national goals to increase ECD service coverage from 24% to 45% and reduce child stunting from 33% to 15% by 2029. A key element of the initiative is adopting China’s “Barefoot Social Worker” model, which trains community-based workers to deliver child welfare services directly to families.

Technical workshops and knowledge exchanges between Rwandan and Chinese experts further strengthen the project, aligning it with Rwanda’s National Strategy for Transformation (NST2).

China’s Agricultural Investments in Rwanda

China’s agricultural investments are another important piece of its poverty reduction efforts. One example is the introduction of Juncao, a sustainable agricultural technology developed by Fujian Agriculture and Forestry University. Juncao uses chopped grass to grow nutrient-rich mushrooms for human and livestock consumption. It is an environmentally friendly alternative to traditional wood-based methods and offers a cost-effective solution to food insecurity.

Known in Rwanda as “the happiness herb,” Juncao has already reached more than 4,000 farmers and created thousands of jobs across the agricultural value chain. It has also been introduced into schools to improve children’s diets, providing an affordable protein source comparable to meat. By enhancing nutrition and income generation, this technology is critical in reducing poverty and improving health outcomes.

Another example of China’s foreign aid Strategy in Rwanda is the $40 million Giseke Dam and Irrigation Project, launched in January 2025. This initiative will irrigate 2,640 hectares of farmland in the Gisagara District and provide year-round water access to more than 900 farming households. The project is designed to stabilize food supply, increase crop diversity and improve nutrition. It also supports Rwanda’s NST2 goals for climate resilience and sustainable agriculture.

Funded through a concessional loan, the dam project reflects China’s commitment to building long-term partnerships through infrastructure. However, such projects also raise important questions about cost, impact and sustainability.

Why Is China Investing in Rwanda?

China’s engagement in Rwanda is closely tied to its broader Belt and Road Initiative (BRI), a global development strategy focused on building infrastructure and boosting trade. The BRI often targets developing nations across Eurasia, Latin America and Africa with investments in roads, ports and energy systems.

To better understand China’s foreign aid strategy in Rwanda, The Borgen Project spoke with Michael Beckley, Director of the Asia Program at the Foreign Policy Research Institute. Beckley is also an Associate Professor at Tufts University.

Beckley explains, “[D]eveloped economies already have infrastructure and are wary of China’s political aims. In [underserved) states, China can buy influence more cheaply—building a road or dam there yields outsized diplomatic returns compared to, say, Europe or Japan.” Rwanda, one of the world’s least developed countries, offers China the opportunity to gain influence at a relatively low cost.

He adds, “The region sits on vital shipping lanes, offers access to raw materials and is seen as an entry point for China’s broader engagement with Africa and the Middle East.” In this context, China’s foreign aid strategy in Rwanda is clearly not just about aid but also about advancing national interests through strategic partnerships.

The Risks of China’s Model

While China’s investments offer tangible benefits, they also come with risks. Beckley cautions that “[P]rojects can displace communities, saddle countries with debt or leave behind poorly maintained infrastructure.” He also notes that “local costs—environmental damage, limited local hiring—can be steep.”

These concerns are especially relevant in countries like Rwanda, where technical capacity is limited. According to the National Institute of Statistics of Rwanda, only 2.8% of the population holds a bachelor’s degree or equivalent. Running complex infrastructure projects like dams may require skills not widely available locally. This can lead to dependence on foreign experts and limit long-term sustainability.

An Opportunity for the United States

Given the strategic motivations behind China’s foreign aid strategy in Rwanda, should the U.S. adopt a similar approach? Beckley argues otherwise, suggesting that “[T]he U.S. might instead focus on partnerships that emphasize transparency, local benefits and sustainable projects, rather than competing on raw loan volume.”

China’s efforts to reduce poverty in Rwanda are impactful but often designed to serve its geopolitical objectives. This leaves room for the U.S. and other partners to offer an alternative model: one centered on community-led development, transparency and long-term sustainability.

Looking Forward

China’s foreign aid strategy in Rwanda has produced significant gains in infrastructure, health and agriculture. Initiatives like early childhood education, Juncao technology and the Giseke Dam show how foreign investment can address poverty and improve lives. However, these efforts also highlight the importance of strategic interests and the potential downsides of debt and dependency.

As Rwanda continues its development journey, international actors, especially the U.S., have an opportunity to contribute meaningfully. The U.S. can offer a complementary and potentially more equitable path forward by emphasizing local ownership, skill-building and sustainability.

– William Brentani

William is based in San Francisco, CA, USA and focuses on Politics for The Borgen Project.

Photo: Flickr