The New Times highlighted that this intervention comes barely a month after local players in the renewable energy sector under their umbrella body, Energy Private Developers, had come out seeking financing to help meet national targets.
A section of the funds will also be used to enable access to credit facilities to mini-grids and developers in the sector.
#BRD roll out $50 million fund managed by the @WorldBank to facilitate electrification of 445,000 households in the next seven years in #Rwanda https://t.co/Ox3Oepuejx via @NewTimesRwanda pic.twitter.com/4aZ01a59sv
— Dev’t Bank of Rwanda (@BRDbank) November 15, 2017
The fund will allow a section of Savings and Credit Cooperatives Societies (SACCOs), commercial and micro-finance institutions to provide affordable loans to their clients to purchase certified solar systems.
Dr Livingstone Byamungu, the chief investment officer at BRD, noted: “The main objective is to increase affordability and reduce access to finance challenges in partnership with SACCOS, commercial and micro-finance banks and mini-grid developers.”
“The target beneficiaries are households and businesses with an objective to replace the use of Kerosine, diesel and dry cell batteries,” Byamungu stated.
Off-grid solutions development
The fund will support Tier 1 off-grid solutions that provide a basic service level such as lighting, radio and mobile phone charging.
“Mini-grid developers can also get resources directly from BRD,” Byamungu noted.
Also commenting on the allocation of funds was Robert Nyamvumba, the energy division manager at the Ministry of Infrastructure, who said that the fund will go a long way in increasing the role of off-grid solutions in the national electricity rollout.
Yasser El Gammel, Country Manager of @WorldBank ~ We want to get energy in all households affordably, in a physically sustainable way. This project is one of the tools we are partnering with #Rwanda to achieve 100% electricity Access. pic.twitter.com/g8uiz6tPJH
— Dev’t Bank of Rwanda (@BRDbank) November 14, 2017
The current energy access rate is reported to be standing at about 40%.
Rwanda Energy Group (REG) has set a new strategy, which seeks to provide power to the entire Kigali city in the next two years and the entire country in the next seven years, under plan dubbed ‘7-5-2’.
Rwandan flag. Image source: Stock
