WB approves $70 millon social protection funding

The World Bank Group on Friday approved a $70-million (about Rwf49 billion) credit to support Rwanda’s social protection strategy. The fund will be disbursed through the International Development Association (IDA) and will help improve efficiency and widen the scope of the strategy, including poverty reduction through increased household income, according to Ronald Nkusi, the director of external finance unit at the Ministry of Finance and Economic Planning. “It will be channeled through 2014/2015 national fiscal budget towards those programmes that are targeting poverty reduction,” Nkusi told The New Times yesterday. The World Bank Development Policy Operation (DPO) supports the government’s National Social Protection Strategy and facilitates Rwanda’s effort to address chronic poverty and reduce the impacts of external shocks on the poor through a larger and more efficient social protection system. According to Carolyn Turk, the World Bank country manager, funds will help Rwanda stay on course of reducing poverty across the country. “Building on the previous DPO series, this proposed programmatic work will help the Government of Rwanda stay on course for reaching its poverty reduction goals, while addressing a new set of reforms critical to strengthening Rwanda’s social protection system,” Turk said in a statement. Improving social protection With support from development partners, including the World Bank, Rwanda will improve the social protection system by focusing on administrative and programmes that re- affirm cohesion and create an efficient system, she added. “This programme will position Rwanda to better support the resilience of the poor and vulnerable and to generate opportunities for more Rwandans to move out of poverty,” Laura Rawlings, the team leader for the World Bank’s Social Protection System programme for Rwanda, said. This programme will result in an improved and efficient social protection system through strengthened management, harmonisation of programmes and better coverage for the poor and vulnerable populations, she added. In 2014, the same board approved $70 million in grants to help Rwanda expand and manage its social protection system. The World Bank also renewed its commitment towards Rwanda through its four year country Partnership Strategy (CPS) 2014-2018. The commitment will see the country receive between $200 million (about Rwf135 billion) and $250 million (about Rwf170 billion) extra funding per year to support priority areas in driving the country’s economic growth. The government is targeting to reduce its extreme poverty levels to less than 30 per cent by 2017 as prescribed under the EDPRS2. editorial@newtimes.co.rw

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WB approves $70 millon social protection funding