Rwanda gets $40m WB grant to fight poverty

The World Bank has approved a $40 million (Rwf23.9 billion) grant to Rwanda to strength pro-poor programmes.The grant will benefit 115,000 people from poor households by 2013, a statement released yesterday read. “This is the first in a series of three World Bank operations designed to support the Government of Rwanda’s growing effort to address chronic poverty and cushion poor people from the adverse impacts of economic and climatic shocks,” the statement continued. Rwanda has made notable progress towards achievement of the Millennium Development Goals (MDGs) that fall due in 2015, including those related to access to primary education, the fight against communicable diseases, and better health and survival rates for mothers and children. Extreme poverty at the national level in Rwanda has fallen to 24.1 per cent (2010-2011), a drop of 11.7 percentage points from 2005-2006. However, given rapid population growth, the bank said, the country’s rapid gains on poverty reduction front need to be accelerated. The Deputy Director General for Social Protection Directorate in the Rwanda Local Development Support Fund, Justine Gatzinzi, said public transfers have been identified among the four major factors that have contributed to Rwanda’s accelerated poverty performance. “Our support to Rwanda as it integrates its social protection activities will help the country cope with a number of remaining challenges such as better targeting of poor and vulnerable households, and proper evaluation of the impact of safety nets,” Senior Social Protection Specialist at the World Bank, Alex Kamurase noted. The World Bank support is in the form of an International Development Association (IDA) grant. Established in 1960, IDA reduces poverty by providing interest-free credits and grants that boost economic growth, and improve people’s living conditions. With World Bank support, the government will focus on strengthening policy development and management capacity of the social protection sector, consolidation of social protection management information systems. The fund will also help in expanding coverage and enhancing harmonisation of social protection interventions in the country and connecting the social protection system with early warning systems that provide information about extreme climatic conditions and natural disasters. Late February, the World Bank approved another US$80 million (Rwf47.9 billion) to help increase incomes and reduce poverty in rural areas of the country.

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Rwanda gets $40m WB grant to fight poverty