Rwanda’s efforts to improve electricity infrastructure and clean energy access received a new boost, with €260.76 million (approx. Rwf435 billion) meant to fund a related project – the Rwanda Energy Sector Result-Based Financing (RBF II) programme, according to a July 17 statement by the African Development Bank (AfDB) Group. The funding includes €173.84 million (approx. Rwf290 billion) that the African Development Bank (AfDB) Group approved on July 14, and an additional €86.92 million (approx. Rwf145 billion) from the Asian Infrastructure Investment Bank. ALSO READ: Rwanda needs $1.5bn to achieve universal energy access by 2029 AfDB specified that the programme funding will be channelled into expanding electricity access – both on-grid and off-grid – modernising electricity infrastructure, and promoting clean cooking technologies, as well as strengthening institutional capacity. On the expected impact, it indicated that it will connect 200,000 households and 850 productive use customers to the national grid, add 50,000 new electricity connections through off-grid solutions, provide clean cooking devices to 100,000 households and 310 public institutions, and install street lighting on 200 kilometres of roads in secondary cities across Rwanda. ALSO READ: Kwibohora 31: Rwanda’s electricity access rose from 1% to 83.2% in three decades AfDB observed that the RBF II programme is anchored on Rwanda’s Energy Sector Strategic Plan (ESSP II 2024–2029) and aims to improve the quality of life of residents, drive economic growth, and reduce poverty through targeted investments in the energy sector. It stated that the Board approval marks the African Development Bank’s second result-based energy sector operation in Rwanda, following a programme funded to the tune of $305 million (approx. Rwf438 billion at current exchange rates) approved in September 2018. This indicates Rwanda’s preference for a performance-based financing approach in closing power infrastructure gaps, AfDB observed. The RBF II programme, AfDB pointed out, is a key deliverable under the Bank’s High-5 priority areas of “Light up and Power Africa” and “Improve the Quality of Life of the People of Africa.” Additionally, it will contribute to delivering on the Mission 300 Initiative of the African Development Bank and the World Bank to connect 300 million Africans to electricity by 2030. Trends in energy generation, access According to Rwanda’s Energy Sector Strategic Plan (ESSP II 2024–2029) developed by the Ministry of Infrastructure, the baseline for generation capacity by end of 2023/2024 was 400 MW. Over the course of 2024-2029, the goal is to steadily increase the generation capacity to more than 410 MW by 2025/26 and 615.303 MW by the end of the 2028/29 period. This “ambitious target will contribute significantly to meeting the growing demand for electricity, thereby supporting economic growth, enhancing living standards, and promoting sustainable development, the blueprint indicates. Over the seven-year period of the implementation of the first National Strategy for Transformation (NST1) which started in 2016/2017 and ended in 2023/2024, the government made substantial investments in the energy sector. As a result, access to electricity increased, reaching 76.2 per cent of Rwandan households. ALSO READ: Over 1.5m new households connected to electricity since 2017 – PM Meanwhile, data from Rwanda Energy Group shows that the cumulative connectivity rate in Rwanda is 82.2 per cent of Rwandan households, as of end February 2025 – comprising 57.4 per cent connected to the national grid and 24.8 per cent accessing through off-grid systems (mainly solar). One of the primary targeted interventions outlined in the ESSP is connecting more than 1.1 million new households to the grid, an initiative aimed to extend the benefits of electricity access to previously underserved areas, thereby improving the quality of life for millions of people, according to the strategic plan. The productive user access to electricity was projected to progressively increase from the current 86 per cent in 2023/24 to 100 per cent by the end of 2028/29, it is indicated. As noted, achieving this goal will have a profound impact, boost economic activities, and foster an environment conducive to entrepreneurship and innovation.
