Sixteen rural districts are set to benefit from a pro-poor basket fund of €16 million (approximately Rwf20 billion) as a partnership between Rwanda and Germany.
The initial funding will be channeled through KFW Development Bank and Agence Française de Développement (AFD) will soon provide an additional €16 million loan.
The target districts include; Gisagara; Nyanza, Ngoma, Nyaruguru, Gatsibo, Nyamagabe, Ruhango, Kamonyi, Rulindo, Gakenke, Burera, Gicumbi, Rutsiro, Nyabihu, Ngororero and Nyamasheke.
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The objective of the basket fund is to support rural districts by financing relevant local infrastructure projects in order to improve living conditions of citizens with a focus on improving access to basic public services, providing employment opportunities, improving resilience to climate change and have a positive impact on women.
The fund will be utilized under three pillars; improve regulatory and operational framework for Local Economic Development (LED) projects, fund inclusive LED projects in rural districts, and offer technical support and capacity building to local entities.
Richard Tusabe, Minister of State in charge of National Treasury, said the pro-poor basket fund complements existing social-economic development efforts under the ongoing National Strategy of Transformation.
"It will contribute to the overall improved wellbeing of citizens in the respective districts through provision and access to services and employment opportunities.”
Birgit Pickel, Director-General for Africa at the German Federal Ministry for Economic Cooperation and Development (BMZ) said attributed the step to the existing partnership between two governments, specifically in the areas of good governance.
"The fund for Pro-Poor Development is a financing instrument that will help local government entities support the most vulnerable people, have a positive impact on women and contribute to Leaving No One Behind.”
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According to the officials, key eligible projects to be funded under the new basket fund will include water supply, sanitation, and health infrastructure, construction of primary, secondary, nursery and daycare centres and provision of scholastic equipment, rehabilitation of health centres, maternity rooms and purchase of equipment, construction and rehabilitation of feeder and access roads to important social and economic infrastructure, as well as construction of agriculture infrastructure such as radical terraces; post-harvest facilities as well as markets.
Projects that will access the funding will be selected through the Public Planning and Budgeting cycle in line with the strategic planning of the line ministry, comply with LODA environmental and social management framework, and should be gender-sensitive, selected based on prioritization at the district level and meet existing climate resilient infrastructure guidelines, among others.