Japan boosts Rwanda’s energy sector with Rwf 14 billion

The Government of Rwanda and Japan Embassy have signed agreement of USD18.4 million ( Rwf 14 billion) to boost the energy sector, especially, addressing commercial losses of electricity.

The second phase of the donation will be used to build power sub-stations in Special Economic Zone, Masoro in Gasabo district. This will enable SEZ-based factories in Kabuga and Ndera to access regular power supply.

The fund will also help to construct sub-stations to distribute electricity in Kabuga and Murindi. In the first phase, Japan aided Rwanda with USD25 million USD that was used to expand electricity facilities in Jabana, Gikondo, Rwinkwavu, Huye and Musha.

During the ceremony of signing agreements, the Minister of Finance and Economic Planning, Amb.Claver Gatete said that the support will boost the energy sector, one of Rwanda’s development engines.

“This will reduce irregularity of electricity supply resulting into losses among manufacturers,” he said.

Recently, the Government of Rwanda signed similar agreements with the European Union and the World Bank to renovate electricity transmission lines in Kigali city.
The Director General of REG, Jean Bosco Mugiraneza said that reducing electricity commercial losses in Kigali city is a good contribution to the entire sub-sector since Kigali city consumes 64% of all electricity used across the country.

“Today, we lose between 22 and 23% of electricity which we target to reduce to 15%,”he said adding that most power losses are attributed to old power facilities that need rehabilitation.

The Japanese embassy in Kigali, Charge d’Affaires Tomio Sakamoto, said that the support seeks to promote sustainable development and improve Rwandans livelihoods.

“Apart from improving economy, the support will play a great role in the education sector and citizens welfare among others,” he said.

Rwandan economy is growing fast where the Gross Development Product averages 7%.This means that electricity inside the country has to be increased by 10% every year.

Rwandan targets to generate 563 Megawatt by 2018.