The African Development Bank Group, working together with the Asian Infrastructure Investment Bank (AIIB) and the Government of Rwanda, has launched the second phase of the Energy Sector Results-Based Financing Program (RBF II). This new phase continues Rwanda’s push toward universal access to reliable, clean, and affordable energy, a goal that has become central to the country’s long-term development strategy.
With a total program envelope of $300 million, Phase II is supported through a $200 million loan from the African Development Bank and a $100 million loan from AIIB, reflecting a strong multilateral effort to scale up progress in Rwanda’s energy sector. Implementation will be led by the Ministry of Infrastructure through the Rwanda Energy Group, in collaboration with the Energy Development Corporation Limited and the Energy Utility Corporation.
RBF II builds on the strong achievements of the first phase, which expanded energy access across the country and demonstrated the effectiveness of performance-based financing. Phase I brought off-grid electricity solutions to at least 370,000 households and helped 460,000 people adopt cleaner cooking technologies. Altogether, more than two million people benefited through improved energy services and new economic opportunities across the value chain.
These results established a solid foundation for Phase II, which applies the same performance-linked approach—where disbursements are tied to independently verified outcomes—to deepen impact and strengthen accountability.The new phase is designed to enhance Rwanda’s electricity infrastructure and expand access even further.
It will support the rehabilitation of four substations, the construction of nearly 3,900 kilometers of medium- and low-voltage lines, and the improvement of grid reliability nationwide. The program targets connecting an additional 200,000 households and 850 businesses to the national grid, along with 50,000 new off-grid electricity connections.
It will also provide clean cooking solutions for 100,000 households and 310 public institutions, and install street lighting along 200 kilometers of roads in secondary cities. These upgrades are expected to unlock economic activity, reduce operational costs for small and medium enterprises, and improve essential services such as healthcare by ensuring more stable and affordable energy.Government officials emphasized that the results-based approach has strengthened implementation capacity and improved coordination among institutions.
Lessons from the first phase are now being used to speed up electrification efforts, enhance service reliability, and ensure that benefits reach households, businesses, and productive sectors more efficiently. Development partners echoed this message, noting that the combination of co-financing, clear performance indicators, and transparent verification mechanisms creates a strong foundation for delivering tangible improvements in people’s lives.
The program launch was followed by a technical workshop that brought together government agencies, development partners, and implementing institutions to align on procurement standards, financial management systems, environmental and social safeguards, and monitoring frameworks. This collaborative approach is essential for ensuring that RBF II achieves its ambitious targets while maintaining strong governance and sustainability standards.
Together, Phases I and II support Rwanda’s national goal of reaching universal electricity access by 2030 and align with the Bank Group’s broader vision of building climate-resilient infrastructure that closes the rural–urban service gap and strengthens communities against climate shocks.RBF II is part of a larger pipeline of energy sector investments supported by the African Development Bank in Rwanda.
These include the Ruzizi III Hydropower Project and the Rwanda Transmission System Reinforcement and Last Mile Connectivity initiative, both of which contribute to the country’s long-term energy security and economic transformation. Through these initiatives, Rwanda continues to make steady and measurable progress toward a future powered by reliable, sustainable, and inclusive energy systems.
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