NYARUGENGE - The World Bank has made a grant donation of $80 million (approx. Rwf45.4 billion), to be channelled through the national budget.
Provided as the 5th Poverty Reduction Strategy Grant (PRSG), the grant will, according to officials, enhance the development agenda in support of the implementation of the Economic Development and Poverty Reduction Strategy (EDPRS).
The grant agreement was signed yesterday between the Finance and Economic Planning Minister James Musoni and World Bank Country Director Victoria Kwakwa, at the Ministry of Finance.
“This is the first time in the PRSG series that we are using the Common Performance Assessment framework (CPAF), a mechanism that has been agreed between the Government of Rwanda and all the budget support donors for harmonizing assessment of Rwanda’s performance to underpin our support through the budget,” Kwakwa said.
The sectors to benefit from the funds include private and agriculture sectors where some of the funds will be channelled to the Agriculture Guarantee Fund that will help farmers to access loans to boost their production especially in rural areas. It will also enhance access to energy, transport and creation of an attractive business environment.
The education sector will benefit through investment in science and technology studies. According to Musoni, the first disbursement will be made immediately after the parliament approves the grant, a process that is expected to happen within two weeks.
“The grant is timely, we expect this form of assistance to enhance our national ownership, directly targeting quick reduction of poverty through pro-poor growth,” said Musoni after the signing of the agreement.
The country’s current economic growth is projected at over 11 percent, the highest in the region.
“This highlights the importance attached to EDPRS and we are confident that the support will make a difference in creating job opportunities and increase agricultural produce,” Kwakwa said.
The EDPRS is a medium term framework adopted by government as a modality of achieving its long term development agenda embodied in the Vision 2020.