Rwanda has signed an agreement with the Saudi Fund for Development (SFD) for a concessional development loan of USD 20 million (approximately Rwf 23.3 billion) to finance the electricity delivery project in the Kamonyi District.
The Minister of Finance Uzziel Ndagijimana, Sultan bin Abdulrahman Al-Marshad, CEO of SFD, signed the agreement on July 11.
The project aims to build a network of medium and low-pressure power lines and electricity distribution transformers to provide electricity to homes, government institutions, and social facilities in the district.
It is part of Energy Access and Quality Improvement program whose objective is to improve access to reliable and cost-effective electricity services for households, public institutions, and productive use in Rwanda.
According to Ndagijimana, the project will benefit approximately 30,769 people and enhance economic, agricultural, and industrial activities in Kamonyi district.
He said it is also expected to create direct and indirect employment opportunities, improve livelihoods, support Rwanda’s economic growth, and promote sustainable living.
Ndagijimana also noted that the financing will contribute to electrification efforts in the District which currently stands at 58.9 per cent.
“At the completion of this project,” he said, “electricity access in Kamonyi District will increase by 6.8 per cent, thus contributing to increase economic and social development within the framework of our National Strategy for Transformation by connecting electricity to more households.”
The Minister further noted that the project is one of several undergoing projects and a step towards the government’s ultimate goal of ensuring every Rwandan citizen has access to electricity by 2024
During the signing ceremony, the CEO of SFD, Al-Marshad, stressed the importance of the project.
“Based on the cooperation, we hope that this project will be a source of development and bring benefits to Rwanda and its people to achieve the sustainable development goals,” he said.
Al-Marshad also praised the 47-year development of relations between SFD and Rwanda.
According to the ministry, SFD has contributed to Rwanda’s economic development by financing various vital projects and developmental programs. Since 1976, the agency’s support has enhanced Rwanda’s developmental sectors and advanced toward the desired economic and social objectives to achieve sustainable development goals.
In 2015, the Rwanda and SFD signed a $15 million (approximately Rwf11.2 billion) concessional loan to fund the construction of Nyagatare-Rukomo road.