Rwanda - Rwanda Energy Sector Results Based Financing (RBF II)

The proposed program is a results-based financing (RBF) operation and is anchored on Rwanda’s Energy Sector Strategic Plan (ESSP II) 2024–2029. The program will support the country in carrying out its electrification program with the aim of improving the quality of life of residents and promoting businesses, thus contributing to economic growth and poverty reduction in Rwanda. The proposed RBF will be the Bank’s second in Rwanda’s energy sector following the first one that is a three (3) year program based on the Country’s ESSP 2018/19 – 2023/24 adjudged “Satisfactory”. In summary, the first RBF has contributed to an additional 83,891 household grid connection, 354,145 off-grid household connections, 3,125 productive use connections, and at the level of outcomes contributed to increasing the national electricity access rate from 44% in 2018 to 78.9% in 2024 and reducing the power system losses from 21% to 18% during the same period. The new RBF builds on the lessons of this first RBF and will continue to support the government in accelerating access targets. The proposed EUR 260.76 million RBF II will be implemented over a period of 2025/26 to 2029/30 fiscal years with three main Results Areas which will all contribute directly to the achievement of the ESSP-II.