The Investment Climate Facility (ICF) has signed an agreement with the Government of Rwanda that will boost the energy sector and increase the country’s investment potential.

According to a media release from ICF, the deal aims mainly at facilitating the government achieve its target of having at least 16 percent of the population accessing electricity by 2012.

An initiative by the G8 countries, the ICF is a public-private partnership between government and business that aims at helping Africa create a more attractive business environment and realise its potential as a global player and a trading partner.

"The ICF’s support will help us to lay the regulatory foundations that will secure greater private investment for Rwandan power generation,” Eng. Albert Butare, the State Minister for Energy is quoted in the statement.

The agreement was signed last Thursday between the ministry and the ICF. The project, which will run for the next three years is worth USD 4million (Approx Rwf 2.1bn). 

"As well as increasing the population’s access to electricity, increased production will bring down the price of energy for Rwandan businesses and consumers which is critical to Rwanda’s ongoing economic development,” Butare underscored.

According to the release, the project will mainly aim at managing contract negotiations, setting tariffs, managing licensing and supporting the long term planning of the country’s power sector.

"Improving access to power is especially important for Rwanda’s small and medium-sized enterprises which have an important role to play at ensuring the country’s long-term economic development,” said the ICF Chef Executive Officer, Omari Issa.

He added: "Providing your own reliable electricity source is much harder for a small enterprise, meaning lack of power can become a very real, and often insurmountable, disincentive to entrepreneurship and enterprise.”

Issa lauded government’s commitment to improve the accessibility of electricity saying that this further demonstrates its willingness to take decisive steps towards advancing the welfare of Rwandans.

"This funding will help strengthen and improve the regulatory and legal infrastructure of the energy sector - vital for attracting further private sector investment,” he emphasised.

The deal is part of the ICF’s efforts to step up measures of improving infrastructural facilities in Africa as a way of empowering the continent to become an investment destination.

In the same vein, a Power Sector Task Force has been established by the ICF to respond to the growing deficit in power generating capacity in many African countries.

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