Rwanda has launched a $300 million energy programme in partnership with the African Development Bank Group (AfDB) and the Asian Infrastructure Investment Bank (AIIB), marking a significant step toward achieving universal access to reliable, affordable, and clean energy by 2030.
The initiative, known as the Energy Sector Results-Based Financing Phase II (RBF II) Programme, aims to expand electricity access, strengthen grid infrastructure, improve reliability, and promote clean cooking solutions across the country. Officials say the programme reflects growing international support for Rwanda’s energy transition and broader economic development agenda.
The programme is financed through a $200 million loan from the African Development Bank Group and a $100 million loan from AIIB. Implementation will be led by Rwanda’s Ministry of Infrastructure, working through key agencies including the Rwanda Energy Group, the Energy Development Corporation Limited, and the Energy Utility Corporation. Authorities say the financing structure will help accelerate energy access while improving service quality and expanding infrastructure nationwide.
The second phase builds on the achievements of the first Results-Based Financing programme, which significantly expanded energy access across Rwanda. During Phase I, at least 370,000 households were reached with off-grid energy solutions, while approximately 460,000 people gained access to clean cooking. Overall, more than two million people benefited from improved energy access, alongside job creation across the energy value chain. The programme also strengthened institutional systems, implementation capacity, and accountability mechanisms within the sector.
A defining feature of the initiative is its results-based financing model, under which disbursement of funds is tied to independently verified performance targets. The approach is designed to strengthen accountability, improve efficiency, and ensure measurable development outcomes. According to Jean Bosco Mugiraneza, Director General for Energy at the Ministry of Infrastructure, the model has already improved implementation systems during the first phase. He said the government is building on those lessons to accelerate connections, enhance service reliability, and deliver greater impact for households, businesses, and productive users.
The programme includes major investments in electricity infrastructure, including the rehabilitation of four substations and the construction of approximately 3,855 kilometres of medium- and low-voltage transmission lines. These upgrades are expected to improve grid stability, expand distribution capacity, and reduce outages. The initiative also targets new electricity connections, including 200,000 households to the national grid, 850 commercial users, and 50,000 off-grid connections, with a focus on reaching remote and underserved communities.
In addition to electricity access, the programme places strong emphasis on clean cooking and public infrastructure. It aims to deliver clean cooking devices to 100,000 households and extend clean cooking access to 310 public institutions. The project will also install street lighting along 200 kilometres of roads in secondary cities, a move expected to improve public safety, urban mobility, and local economic activity.
Officials say the programme is expected to generate wide-ranging economic and social benefits, including reduced operating costs for businesses, increased productivity for small and medium enterprises, enhanced rural economic activity, and improved healthcare delivery. Reliable electricity access is seen as critical for industrialization, digital development, education, and private sector growth.
Speaking at the launch, African Development Bank Country Manager for Rwanda Aissa Toure Sarr described the programme as a transformative investment that will accelerate Rwanda’s progress toward universal energy access. She emphasized that the partnership between AfDB, AIIB, and the Government of Rwanda is enabling co-financing that scales impact while ensuring accountability, efficiency, and tangible results.
Following the launch, government officials, development partners, and technical experts convened for a high-level workshop focused on implementation. Discussions centered on procurement systems, financial management, environmental and social safeguards, and monitoring and evaluation frameworks, with the aim of strengthening coordination across institutions.
The programme is a key component of Rwanda’s strategy to achieve universal electricity access by 2030 and aligns with the African Development Bank’s broader focus on climate-resilient and inclusive infrastructure. It also complements other major energy initiatives in the country, including the Ruzizi III Hydropower Project and national transmission reinforcement programmes.
