Rwanda needs Rwf518bn to recover from flood-induced losses

The government is seeking Rwf518.58 billion (approximately US$415 million) to facilitate the recovery from the extensive physical and economic losses inflicted by recent floods and landslides, as per the comprehensive landslides and floods damage assessment conducted by the Ministry of Finance and Economic Planning. Originally, initial estimates projected a recovery cost of Rwf300 billion. ALSO READ: PM Ngirente unveils homes for disaster-stricken families The post-disaster needs assessment identified the infrastructure sector as requiring Rwf388.37 billion to re-establish economic activities, employment opportunities, social protection, and food security. The social sector necessitates Rwf107.5 billion, while the productive sectors, including agriculture, trade, and industry, require Rwf14.5 billion for a full recovery. Additionally, cross-cutting needs such as disaster risk management, gender equality, and social protection call for approximately Rwf8 billion. ALSO READ: Climate change could erode 7% of Rwanda’s GDP by 2050 The evaluation further revealed that the floods caused damages and losses amounting to an estimated Rwf222.31 billion ($193.32 million). The transport sector suffered the most significant impact, accounting for nearly 60 percent of the total damages and losses, followed by the housing sector at 12 percent, environment and water resources management at 12 percent, and health sector losses estimated at 8 percent. Richard Tusabe, the Minister of State in charge of National Treasury, said, Disasters serve as stark reminders of the impact of climate change on people's lives. This necessitates collaboration at both national and international levels to establish joint frameworks and interventions that mitigate the severity of climate change-related hazards. Impact on Growth The direct effect of the flooding is projected to result in a production reduction of approximately $31.1 million (equivalent to Rwf36.1 billion), which will contribute to an estimated decline in growth of about 0.17 percent, as stated in the report. Furthermore, the indirect effect, reflecting additional production losses due to substantial damage to critical assets and infrastructure, is estimated at $159.7 million (Rwf186 billion), resulting in a further decrease in GDP growth of about 0.23 percent. Consequently, the combined losses and damages are expected to reduce the projected 2023 GDP growth to 5.8 percent, compared to the initial estimate of 6.2 percent prior to the disasters, representing a significant decline from the growth rates observed after the COVID-19 pandemic. On the night of May 2-3, 2023, heavy rainfall triggered floods and landslides, causing extensive damage and loss of life in various parts of the Western, Northern, and Southern Provinces. Over 130 lives were tragically lost, leaving more than 20,000 people homeless, while infrastructure and crops suffered severe destruction.

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Rwanda needs Rwf518bn to recover from flood-induced losses