Green bond issuance

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.

World Bank invests in new development

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.

Uplifting communities

“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.

New customers will be able to access cleaner means of fuel to generate power that are more affordable and sustainable in the long-term. Read more…

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.

Featured image: 123rf

Source: ESI Africa

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