New renewable energy fund project to benefit 445,000 households signed

Under the project, BRD will provide loans to Bank of Kigali, I&M Bank, Access Bank and KCB; and those banks will also provide loans to people and businesses who will need to invest in renewable energy.

Last year, the Government of Rwanda through BRD, launched a $49 million (over Rwf41 billion) project which will enable 445,000 households get access to electricity through renewable energies by 2023.

The project will facilitate small and medium businesses and 1.8 million people to get access to electricity specifically those who do not have access to national grid.

BRD Chief Executive Officer, Eric Rutabana said that the signed agreement is a way to approach people with projects that need loans to buy materials which they will use in renewable energies.

“Projects to fetch electricity from renewable energies like solar and small hydropower plants among others will get funding, for individuals who will need to connect their homes or buy materials will be able to acquire loans,” he said.

He said that through the six-year project, $46 million will go in electricity related activities, whereas other $3 million will go to support partners like Saving and Credit Cooperatives (SACCOs), banks and micro-financial institutions which will provide loans to people and investors.

According to BRD, private sector role is paramount towards achieving the government’s target to have 100% access to electricity by 2024.

Speaking at the signing ceremony, the Bank of Kigali’s Chief Commercial Officer, Vincent Gatete said that the partnership comes as response to the interest rates which are high and discourage people working in energy sector.

The Managing Director of KCB Bank George Odhiambo said “As a business we are ready to see this project successful and we consider this as a catalyst to offset other development projects in Rwanda,”

Under the seven-year government programme, the government has targeted that in 2024 all households will be connected to electricity, 52% of them will be connected to National Grid whereas 48% will be connected to other sources of energy.