The African Development Bank Group (AfDB) has approved $201.4 million to fund the modernisation of Rwanda’s electricity distribution network.
In a press release by the Bank on Thursday, the funding is for the Rwanda Energy Sector Result-Based Financing (RBF II) program which aims to modernize Rwanda’s electricity network, expand access to clean energy, and strengthen institutional capacity.
“Specifically, the program is focused on delivering results in 3 areas: modernizing and extending the electricity network and systems; increasing access to on-grid and off-grid electricity and clean cooking technologies; and strengthening technical and institutional capacity,” the Bank said in the statement.
The RBF 2 program is expected to connect 200,000 households and 850 productive use customers to the national grid.
It will also add 50,000 new electricity connections through off-grid solutions, provide clean cooking devices to 100,000 households and 310 public institutions.
As part of the plan, street lights will be installed on 200 km of roads in secondary cities across Rwanda.
Additional funding for the program will come from the Asian Infrastructure Investment Bank with $94.9 million, bringing the total program cost to $302.1 million.
The RBF 2 program is part under two of the Bank’s High-5 priority areas of “Light up and Power Africa” and “Improve the Quality of Life of the People of Africa”
The RBF II program anchors on Rwanda’s Energy Sector Strategic Plan (ESSP II 2024–2029) and aims to improve the quality of life of residents, drive economic growth, and reduce poverty through targeted investments in the energy sector.
Additionally, it will contribute to delivering on the Mission 300 Initiative of the AfDB and the World Bank to connect 300 million Africans to electricity by 2030.
As Rwanda’s electricity infrastructure is getting an upgrade from the AfDB, the country’s electricity capacity will soon increase as US-based Anzana Electric Group has announced plans to fund the construction of the stalled 206-megawatt Ruzizi III hydropower plant on the Ruzizi River between Rwanda and the Democratic Republic of the Congo.
The project will boost Rwanda’s electricity generation capacity by 30% and advance economic growth in the region.
