Rwanda secures Rwf23 billion to finance electricity delivery project

On 12 July 2023 at 02:07

The Saudi Fund for Development (SFD), represented by its CEO, Mr. Sultan bin Abdulrahman Al-Marshad, on Tuesday 11th July, signed with the Minister of Finance and Economic Planning, Dr. Uzziel Ndagijimana an agreement for a concessional development loan of $20 million (Approximately Rwf23.3 billion) to finance the electricity delivery project in the Kamonyi District.

The signing ceremony was attended by a number of officials from both sides.

The project is part of a wider Energy Access and Quality Improvement program whose objective is to improve access to reliable and cost-effective electricity services for households, public institutions, and productive use in Rwanda.

The project aims to build a network of medium and low-pressure power lines and electricity distribution transformers to provide electricity to homes, government institutions, and social facilities in the Kamonyi District.

This forms part of the comprehensive project to deliver electricity to several of the most underserved areas in the country. This project will benefit approximately 30,769 people and enhance economic, agricultural, and industrial activities, create direct and indirect employment opportunities, improve livelihoods, support Rwanda’s economic growth, and promote sustainable living.

During the signing ceremony, the CEO of SFD, Sultan Al-Marshad, stressed the importance of this project, which will support the Kamonyi region with electricity infrastructure and enhance sustainable economic and social development in Rwanda. He also praised the 47-year development of relations between SFD and Rwanda.

In addition, Al-Marshad said, "Based on the cooperation, we hope that this project will be a source of development and bring benefits to Rwanda and its people to achieve the sustainable development goals."

The Minister of Finance and Economic Planning, Dr. Uzziel Ndagijimana noted that the financing will contribute to electrification efforts in Kamonyi District which currently stands at 58.9%.

Minister Ndagijimana said, “At the completion of this project, electricity access in Kamonyi District will increase by 6.8%, thus contributing to increase economic and social development within the framework of our National Strategy for Transformation by connecting electricity to more households. It is another step towards our ultimate goal of ensuring every Rwandan citizen has access to electricity by 2024.”

Saudi Fund for Development has contributed to Rwanda’s economic development by financing various vital projects and developmental programs. Since 1976, SFD support has enhanced Rwanda’s developmental sectors and advanced toward the desired economic and social objectives to achieve sustainable development goals.