World Bank has approved US$125 million funding line to help the government reduce poverty through private sector development, a statement from the lender says. The financing is composed of US$60 million grant and a credit of US$65 million from International Development Association (IDA), an arm of the World Bank.
Mimi Ladipo, World Bank Country Manager for Rwanda said the focus of the support reflects the key thrust of the new World Bank Strategy for Africa.
“The focus is creating opportunity for growth and harnessing private sector growth for sustainable poverty reduction,” she said.
In a statement from World Bank, the eighth Poverty Reduction Support Financing (PRSF-8) will help the Government’s implementation priorities in its medium term strategy, the Economic Development and Poverty Reduction Strategy.
The latest support is the third in a series of World Bank Poverty Reduction Support operations for Rwanda launched in 2002. It will support the development of policies that facilitate increased private sector investment and involvement and ease constraints to broad based growth.
Priority areas of support will be policy measures aimed at facilitating trade and investments, increasing access to electricity and improved infrastructure services, raising private sector participation in the agricultural sector and increasing the quality and relevance of education to build a skilled workforce.
Other areas include improving service delivery through focused and strategic civil service reform, and strengthening the management of public resources, increased transparency and accountability.
“The proposed US$125 million in IDA commitments for this operation is the largest single development policy financing tranche to Rwanda so far,” said Birgit Hansl World Bank Task Team Leader.
Hansl said the move reflects the World Bank’s positive assessment of the Rwandan Government’s continued commitment to reforms that can lead to inclusive and broad based development.
The most recent World Bank assessment conducted in October this year, showed that Rwanda is making good progress in terms of implementing the targets and policy actions within the harmonised framework of budget support.
The Rwanda IDA portfolio comprises eight investment projects with a net commitment of US$ 277 million.