The Howard G. Buffett Foundation has pledged $3.7 million (about Rwf2.5 billion) toward support for Strategic Capacity Building Initiative (SCBI), a four-year plan aimed at enhancing government’s ability to deliver tangible results in priority areas.

The foundation, run by American philanthropist Howard Graham Buffett, announced its support on Tuesday.

SCBI was launched in 2011 and is coordinated by the National Capacity Building Secretariat (NCBS). It identifies, takes ownership of, as well manages the country’s economic development priorities.

The initiative establishes a strong link between capacity building and practical delivery, with international experts and Rwandan counterparts working side by side to deliver the country’s priorities.

In the pilot phase of SCBI, government prioritised four critical areas for capacity building support such as electricity generation, agriculture production, mining and increased investments.

"Rwanda’s development successes can be attributed to its aid effectiveness and its investments in government and institutions,” said Foundation chair and chief executive Howard G. Buffett.

"If Western donors truly want to support African-led development, and bring an end to Africa’s reliance on outside aid, it’s critical they support important efforts such as SCBI. Withholding aid to make a short-term political statement only hurts millions of everyday Rwandans in the long-term,” he added.

The SCBI seeks to support government efforts to achieve specific development targets by 2015.

Speaking to The New Times yesterday, Peter Malinga, the coordinator of Single Project Implementation Unit (SPIU) at NCBS, said capacity building is an essential ingredient to the achievement of the national development agenda even though it requires substantial investments.

"This specific support from the Buffett Foundation is a good demonstration toward fast-tracking the country’s capacity in select crucial areas of development,” he added.

Malinga said government prioritises critical areas for based on a capacity needs assessment conducted by the relevant ministries and implementing agencies

"Increasing capacities to diversify and boost electricity generation, enhancing agricultural production, especially through the crop intensification programme, increased revenue from mining and fast-tracking private sector development through increased investment in priority areas to be supported by the fund,” he said.

Malinga SCBI is putting much emphasis on creating a pool of Rwandan experts by the end of four years through providing them with required job skills.

Amb. Claver Gatete, the minister for finance and economic planning, said the contribution of Buffett Foundation to Strategic Capacity Building Initiative will play an important role in the acceleration of Rwanda’s ongoing economic development.

"In the past five years, Rwanda has sustained economic growth of over 7 per cent and lifted one million people out of poverty. We thank the Buffett Foundation for a mutually beneficial partnership that will create sustainable institutional capacity that will in turn deliver the progress Rwandans deserve,” Amb, Gatete said.

In September, government unveiled the second Economic Development and Poverty Reduction Strategy (EDPRS2) that runs for the period of five years.

The poverty reduction strategy is expected to drive the country to a middle income status.