4 November 2008 – An agreement between the Investment Climate Facility (ICF) and the Rwandan government will help the government reach its target of electricity to 16% of the population by 2012.
An initiative of the G8 countries, the ICF is a public private partnership that aims to help Africa create a more enabling business environment. "The ICF’s support will help us to lay the regulatory foundations that will secure greater private investment for Rwandan power generation," said Eng. Albert Butare, the State Minister for Energy in a statement.
The agreement, worth US$4 million, will additionally be used to reduce the costs of electricity through increased production, setting tariffs, managing licences and supporting long term planning for the country’s power sector.
"As well as increasing the population’s access to electricity, increased production will bring down the price of energy for Rwandan businesses and consumers which is critical to Rwanda’s ongoing economic development," Butare said
"Improving access to power is especially important for Rwanda’s small and medium-sized enterprises which have an important role to play at ensuring the country’s long-term economic development," said the ICF chief executive, Omari Issa.
He continued: "Providing your own reliable electricity source is much harder for a small enterprise, meaning lack of power can become a very real, and often insurmountable, disincentive to entrepreneurship and enterprise."
"This funding will help strengthen and improve the regulatory and legal infrastructure of the energy sector – vital for attracting further private sector investment," he emphasised.
A power sector task force has been established by the ICF to address the growing deficit in power generation in many African countries.