According to a statement released on July 17, this financing approved by the Board of AfDB on July 14, 2025, will be bolstered by an additional €86.92 million (more than Frw 143 billion) from the Asian Infrastructure Investment Bank (AIIB), bringing the total program cost to €260.76 million (over Frw 433 billion).
This marks the AfDB's second result-based energy sector operation in Rwanda, following a $305 million program in 2018, underscoring Rwanda's commitment to performance-based financing to bridge its power infrastructure gaps.
Aligned with Rwanda's Energy Sector Strategic Plan (ESSP II 2024â€"2029), the RBF II program is designed to enhance quality of life, spur economic growth, and alleviate poverty through targeted energy sector investments.
The program focuses on three key areas, namely: modernising and expanding the electricity grid, increasing access to both on-grid and off-grid electricity and clean cooking technologies, and building technical and institutional capacity.
It aims to connect 200,000 households and 850 productive use customers to the national grid, provide 50,000 new off-grid electricity connections, distribute clean cooking devices to 100,000 households and 310 public institutions, and install street lighting across 200 km of roads in Rwanda's secondary cities.
As a cornerstone of the AfDB's High-5 priority areasâ€"'Light up and Power Africa' and 'Improve the Quality of Life of the People of Africa'â€"the RBF II program also supports the ambitious Mission 300 Initiative, a joint effort by the AfDB and the World Bank to connect 300 million Africans to electricity by 2030.
This initiative complements Rwanda's remarkable strides in expanding electricity access.
According to a recent report by the National Institute of Statistics of Rwanda (NISR), household access to electricity significantly increased, from 34% in 2017 to 72% in 2024.
The findings, published in the Seventh Integrated Household Living Conditions Survey (EICV7) on April 16, 2025, show that 50% of households are now connected to the national grid, while 22% rely on standalone solar systems.
While urban areas experienced an increase in household electricity access from 76% to 88%, the growth in rural areas has been even more substantial. Access in rural areas dramatically increased from 24% in 2017 to 65% in 2024.
Notably, electricity access has also improved for the lowest economic segment, with 53% of households in the lowest quintile now having access, compared to only 9% in 2017.
Théophile Niyitegeka
