The African Development Bank (AfDB) has increased its funding to Rwanda from $147.9 million (Rwf83.9 billion) to $154.2 million (Rwf87.2 billion). This means that Rwanda’s allocation under the African Development Fund’s (ADF-XI) cycle has been increased by $9.3 million (Rwf5 billion), representing a 6.4 percentage increase. According to Diko Jacob Mukete, the country’s representative of AfDB, the increase reflects Rwanda’s improved performance in 2008. “Rwanda registered improved performance especially the implementation of a range of structural reforms in the area of regional integration and the business environment as well as equity use of public resources, and human capacity building,” he said disclosed. Mukete said this recently during the signing of the Memorandum of Understanding (MoU) between government and AfDB to support skills development in Rwanda. The deal was signed on Friday last week. A statement from AfDB explains that the bank uses a performance-based allocation system to apportion resources among its ADF eligible regional member states. The national allocation is within the framework of three-year cycles. “Within each cycle, AfDB reviews allocations annually to reflect the results of the annual Country Performance Assessments of the preceding year,” it adds. Hence, it means that allocations are determined on the basis of a formula which reflects a judgment on both performance and needs. Needs are measured through the levels of population and per capita income. Rwanda’s population is estimated at about 10 million. Last year, the country’s real Gross Domestic Product (GDP) increased to 11.2 percent from 7.9 percent the previous year. This was the highest economic growth Rwanda has registered in five years. The country’s performance assessment is based on the current policies and institutions in the field of economic management; structural policies; social inclusion and equity policies. AfDB has just approved a grant worth $7.4 million (Rwf4.2 billon) to promote a competitive investment climate in Rwanda within a period of four yeas. Ends
