The Chamber of Deputies on Wednesday, June 24, approved a draft law authorising Rwanda to ratify a $141 million (about Rwf207 billion) loan agreement with the International Development Association (IDA) to support disaster risk management through a contingent emergency response mechanism. Lawmakers first adopted the relevance of the draft law in the same sitting before approving the agreement signed in Kigali in early April. ALSO READ: Rwanda strengthens telecom systems for disaster response The Minister of State for National Treasury at the Ministry of Finance and Economic Planning, Godfrey Kabera, told MPs that the financing is intended to respond to recurring disasters. “Rwanda still faces challenges of disasters such as floods, droughts and landslides, which affect the well-being of citizens as well as the country’s economy. In this regard, the International Development Association has provided this loan to be used in case such disasters occur,” the minister said. ALSO READ: Disasters kill 67 in five months as lightning emerges deadliest hazard “The funds are meant to remain on standby. They will only be accessed when a nationwide disaster occurs. It is a form of insurance that ensures immediate availability of resources when they are needed.” He also outlined the concessional terms of the agreement, including a 40-year repayment period, an 11-year grace period and zero per cent interest. ALSO READ: Rwanda loses $300m to disasters annually - report “It is not part of the normal budget execution. It is emergency financing that strengthens our capacity to respond quickly without waiting for new financing arrangements during crises.” Lawmakers noted that Rwanda already has legal and institutional frameworks for disaster management, though gaps remain in coordination, preparedness financing and rapid response during large-scale emergencies.
