To shed more light on the bank’s impact and future plans in Rwanda, IGIHE had a conversation with the Country Manager for Rwanda, Aissa Touré. Appointed to the role in December 2020,she provided insights into the Bank’s operations, including its activities and opportunities for the private sector.
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{{IGIHE: Which mega projects currently being implemented by the AfDB in collaboration with the Government of Rwanda?}}
{{Aissa Touré:}} The bank has been working with Rwanda since 1974, since then we have provided US$2.9 billion worth investments in many sectors. As we speak, we have a portfolio of 26 projects worth US$1.5 billion. These projects are mainly in the area of infrastructures including water, sanitation, transport and energy. This accounts for 87% of our entire portfolio.
The remaining projects are in skills development and human capital in general and interventions to support the private sector to thrive and be able to contribute to the socio-economic transformations of Rwanda.
Within infrastructures, 46% of our projects are for energy, 28% are in water and sanitation and 13% in transport.
These include Kivu Belt game changing project, Carnegie Mellon University – Africa, School of Architecture and Built Environment (SABE), Kagitumba-Kayonza- Rusumo and Base-Rukomo-Nyagatare roads, the Kivu Watt project and Kigali Bulk Water Project to name few.
The impacts of these investments are massive because we believe that providing services such as water and sanitation, roads and energy, education, access to schools and hospitals facilitate a lot in many aspects because when you have electricity , you can go for agro-processing , you can have start businesses. Our impact has been massive.
During COVID-19, the Bank provided US$100 million as direct financing public support as a contribution to the recovery fund the government put in place.
It is a long partnership, we are a trusted partner, and the second largest development partner of Rwanda after the World Bank.
We are currently preparing a new project in transport that will need public investment to get the infrastructure done. Once this investment is done next year, we will come with private sector investment because the government has requested the bank to support on electric buses.
This is something that we are very excited to do because this is a new avenue for development in Rwanda. We are happy to be part of it.
Lastly, as part of the new international airport in Bugesera and the expansion of the airplane fleet in the country require qualified human capital to manage, operationalize and sustain these investments the Bank will support to the government to set up a Centre of Excellence for Aviation Skills (CEAS).
It is a project of around US$24 million to set up an academy where all the skills that are needed in the aviation value chains, from pilots and other people working at the airport will be trained.
{{What are projections to help Rwanda achieve its goals?}}
In Rwanda, the bank has what we call a country strategy paper which defines what the bank could be doing in the country for a period of time.
In Rwanda, the country strategy runs from 2022 to 2026. It is designed around two mutually reinforcing pillars. The first one is strengthened physical infrastructure to enhance productive resources and reduce the cost of doing business; and the second one is around improve skills and financial capabilities to foster private sector and productivity-led growth. because these are critical for meeting NST1 and would even be more critical for the NST2 that is in the making.
We have that strategy, it has been formulated with the government and it is really a participatory process. Within that, we have what an indicative pipeline which runs from 2022 to 2024, we have discussed with the government what they will be doing and what they want us to focus on.
We provide resources to countries. We are very soon going to disclose to all country members including Rwanda what the allocation will be from 2023 to 2024.
{{ How do you promote private sector development in Rwanda?}}
In 2023, Rwanda got a very consistent private sector window under the AfDB Window of US$242. Usually, this window finances lines of credit to Band of Kigalu, BRD, Equity among others but we really want the private sector to come and have direct access.
The Bank needs to do more outreach and awareness raising on its Private sector financing opportunities. In May this year, we will have a private sector road show to engage with the private sector federation, RDB and big players on private findings opportunities.
We look forward to having this dialogue with the private sector for them to know the instruments that we have, the conditions and the sectors that they can use it for.
{{How are you working with countries to tame rising inflation?}}
Economic hardships started with COVID-19 which has been challenging for all countries especially African ones with borders closing and lockdowns etc… When countries like Rwanda were starting to slowly recover, we had the Ukraine and Russia war.
When COVID-19 hit, the Bank and the Government agreed the financing of the year 2020 would go to the budget support. We provided the entire envelope to the COVID 19 recovery fund.
When the Ukraine-Russia crisis hit last year, the bank quickly put in place the African Emergency Food Production Facility provide 20 million African smallholder farmers with certified seeds. Initially, Rwanda was not a beneficiary of this facility.
We had to make a case and that facility has been exhausted but Rwanda with US$1 million. Discussions are on-going with the Ministry of Agriculture on how that money could be used.
We had last December the Dakar Summit on agriculture and because you see that inflation is mainly in food items especially for Rwanda.
Rwanda presented a very good case in Dakar last year, and we are trying to unpack different investment schemes especially because the private sector is key to making those investments a reality.
We are working to see how we can better support countries, address and mitigate the impact of inflation.
Last year, we also gathered all Eastern African countries, made a study on the impact of inflation and the Ukraine-Russia crisis. Each country had an opportunity to present measures put in place. It was also a good moment to learn from each other.
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