Rwanda has received financial backing from the World Bank through a secured $50 million credit to ramp up off-grid renewable projects in the east African region.
On Friday, Rwanda’s minister of finance and economic planning, Claver Gatete, and World Bank country manager for Rwanda, Yasser El-Gammal signed the financing agreement, News Ghana reported.
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According to the agreement, the Rwanda Renewable Energy fund Project (REFP) will help in implementation of the renewable energy programme through catalysing private sector investments in off-grid renewable energy access by addressing main challenges faced by the households and private companies in the off-grid market, News Ghana reported.
Media further noted that this initiative will support the Rwandan government by establishing a Renewable Energy Fund (REF), which will help overcome financial barriers to scaling up the deployment of standalone home systems and renewable energy mini-grids in the country.
The REFP intends to provide 445,500 new off-grid connections, which will electrify an estimated 1.8 million people.
“Our target is to increase electricity access in Rwanda through off-grid technologies and facilitate private-sector participation in renewable off-grid electrification,” Gatete said.
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Media highlighted that this move will facilitate collaboration between Rwandan financial institutions and the private sector to ensure quality provision of off-grid services and provide direct financing to qualified mini-grid developers.
“I hope that the renewable energy fund becomes a vehicle to crowd-in resources to the off-grid electricity sector, attracting financing from both private sector and development partners,” said el-gammal.
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Source: ESI Africa