Rwanda is exploring ways to finance its planned nuclear power programme as it prepares for the deployment of its first small modular reactor (SMR) in the early 2030s. The financing options are outlined in the new Nuclear Industrial Localization Roadmap, which examines how the country can mobilise the capital required for nuclear infrastructure while creating opportunities for local industries. According to the roadmap, published by Rwanda Atomic Energy Board (RAEB) on Tuesday, September 29, traditional corporate balance-sheet financing is “entirely infeasible” for a developing country pursuing an ambitious nuclear programme. ALSO READ: Rwanda targets first 110MW from nuclear energy by 2033 It adds that financing the programme would require the “mobilisation of sovereign wealth, multilateral development capital, and highly structured, globally integrated public-private partnerships.” Here are the financing models outlined in the roadmap: Build-Own-Operate model Under this model, a foreign vendor or investor consortium would take responsibility for financing, designing, constructing and operating the nuclear facility. “Crucially, the host nation is not required to provide any upfront sovereign capital,” the roadmap says. Instead, the host country, in this case Rwanda, would provide the site, oversee regulation and secure a long-term revenue stream for the vendor through a sovereign-backed Power Purchase Agreement (PPA). The model would also shift major project risks, including construction delays, cost overruns and early operational challenges, to the foreign vendor. An example cited is Türkiye’s Akkuyu Nuclear Power Plant, which achieved a 56 per cent local content rate, with domestic companies involved in areas such as steel, concrete and civil engineering. The document says the example shows how a foreign-financed Build-Own-Operate (BOO) model can support local industrial development when technology transfer is required. Cooperative ownership The roadmap also considers Cooperative Ownership, based on Finland’s Mankala model. Mankala brings together energy-intensive industries and other power users to jointly finance and operate a power plant, with participants buying electricity based on their ownership share. The model has been used in Finland for major nuclear projects, including the Olkiluoto 3 reactor. However, according to the roadmap, a pure Mankala model would be difficult for Rwanda at present because the country does not yet have enough large, well-capitalised energy-intensive companies able to take on such financial commitments. It says that if Rwanda attracts major mining companies, smelting operations or hyperscale data centres, they could form a cooperative consortium to co-finance a small modular reactor (SMR) alongside the state utility. Such an arrangement could help address the financing challenge while providing industrial demand for a 100+ MW plant. ALSO READ: Why Rwanda is betting on nuclear energy for socioeconomic growth Government-to-government financing The roadmap describes government-to-government financing as the dominant historical mechanism for international nuclear exports, particularly into emerging markets. Under this arrangement, the government of the nuclear technology supplier provides financing through export credit agencies or state-owned banks. Examples include the Barakah Nuclear Power Plant in the United Arab Emirates, which combined UAE sovereign equity with Korean export credit, and Hungary’s Paks II project, where Russia provides a state loan covering 80 per cent of the financing needs. The model can also involve contracts to deliver the complete nuclear plant, alongside financing, training and capacity-building support. “Government-to-government (G2G) financing requires the host nation to absorb the immense sovereign debt directly onto its national balance sheet,” the document says. It also warns that relying on a single supplier country for financing, fuel and technical support could create a long-term relationship that limits the country’s flexibility. Role of development finance institutions The roadmap points to changes in international development-finance policy, stating that the World Bank ended its exclusion of nuclear lending in June 2025 and the Asian Development Bank removed its exclusion of nuclear energy from its lending policy in November 2025. “The sudden availability of Multilateral Development Bank capital provides a politically neutral, highly concessional alternative to bilateral G2G debt,” the roadmap says. It also links the financing environment to the International Atomic Energy Agency's (IAEA) work on harmonising nuclear regulations and standardising components for SMRs, saying these efforts could help reduce risks for private investors. Financing tied to local industry The roadmap says Rwanda’s financing strategy should also support its wider industrialisation objectives. It recommends linking financing and procurement arrangements to local participation, including requiring vendors to use Rwandan inputs and services such as concrete, structural steel and civil engineering labour where appropriate. It also recommends that government-to-government agreements include technology-transfer requirements, including support for vocational training centres, university partnerships and quality-assurance certification for Rwandan manufacturers. The document says the financing model should be linked to Rwanda’s wider industrial strategy. “The optimal financing model for Rwanda cannot be selected in a commercial vacuum. It must be inextricably linked to the nation’s overarching sovereign industrial strategy.” It adds that the financing structure should protect the national treasury from major construction risks while creating opportunities for domestic companies and skills development.
