The government of Rwanda has received a grant of $50 million—about Frw 27.5 billion from the African Development Bank (AfDB).
The budget support money is to help Rwanda finance part of this and next year’s budget. James Musoni, the Finance and Economic planning signed on behalf of government while Dr. Donald Kaberuka the AfDB president signed on behalf of his bank.
The signing ceremony took place October 30 at the ministry of finance headquarter in Kigali. According to Musoni, the fund is to finance the second phase of the Poverty Reduction Strategy Support Programme (PRSSP-II).
He described the budget support as more efficient in reducing transaction costs for the government and in strengthening its (govt) planning, budgeting and monitoring systems.
“Steady progress has been made so far by the government in implementation of reforms to promote governance, through the improvement of public finance management, enhancement of the population’s participation in the design and implementation of development policies,” Musoni said.
Kaberuka said that the bank is also determined to support Rwanda in other sectors like infrastructure, agriculture, ICT, private sector development and science and technology.
“Our aim is to promote economic growth for sustainable development and poverty reduction in Africa,” the president said.
The bank has also agreed to work jointly with the International Telecommunication Union (ITU) in interconnecting all African capitals and major cities with ICT broadband infrastructure. Both organisations also agreed that thereafter they will strengthen Africa’s connectivity to the rest of the world by 2012.