The government of Rwanda and the World Bank on Wednesday signed a $70 million financing deal, the last installment of a three-year aid program to be used in poverty-alleviation programs more especially combating natural disasters.
The package is part of International Development Assistance (IDA) for Rwanda, which includes a $46 million loan and a grant of $24 million. It is also the last installment of a three-year spending program worth $650 million that ends in June.
The new grant will help to strengthen management capacity and monitoring systems, make social protection more responsive to natural disasters, and expand coverage to greater numbers of poor regions and people.
“Poverty reduction and inclusive growth has been government Rwanda’s core strategies. Supporting vulnerable persons and families to escape extreme poverty ensures everyone benefits from Rwanda’s economic progress,” Minister of Finance and Economic Planning Claver Gatete said.
World Bank country manager Carolyn Turk told reporters “The government has used social protection programs very effectively over the past decade and now looks to reduce extreme poverty to 9 percent by 2018,”
She said the size of the next program had not yet been decided but that “she was fairly optimistic.”
World Bank is one of Rwanda’s key development partners who have worked closely with the government on several development-related activities in Agriculture, infrastructure, energy among others.
The global bank and other development partners including the UNDP have hailed Rwanda for its accountability and proper usage of donor funds aimed at supporting and transforming lives of Rwanda today.
“Rwanda is known for its proper utilization of development assistance and indeed the effect is reflected on the ground in terms of reduced poverty and economic development,” said Makhtar Diop, the World Bank’s Vice President for Africa said earlier during his visit to Rwanda this month, to discuss development cooperation.
World Bank support to Rwanda consists of nine operations with an aid commitment of US$ 509 million. Project objectives have ranged from helping farmers manage marshland and hillside cropping to rehabilitating water supply systems and providing electricity to rural households.
Some of the key projects and programs funded by the Bank include the Rwanda Electricity Access Scale-up and Sector Wide Approach (SWAp) Development Project (US$70 million) and Land Husbandry, Water Harvesting and Hillside Irrigation (US$69 million).