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The AfDB has approved $84.22 million in loans and grants for rural electrification in Rwanda.
- The funds will enable the provision of electricity access to about 77,470 rural households.
- Rwanda plans to achieve universal energy access by 2024.
The African Development Bank (AfDB) Group has approved $84.22 million in loans and grants to Rwanda. The AfDB will release the funds as part of the ‘Transmission System Reinforcement, and Last Mile Connectivity’ project will enable the electrification of about 77,470 rural households in the southern part of the country. The project is part of the government’s efforts to achieve universal electrification by 2024.
The funds comprise a $36.77 million loan component and $47.45 million in grant funding. Under the project, new low and medium voltage distribution lines (about 2,215km) will be constructed. Also, upgrade, and rehabilitation of about 1,720km of low voltage network will be carried out. The completion of the project is expected to increase grid stability, expand access.
According to Ron Weiss, CEO, Rwanda Energy Group (REG), Rwanda needs an annual investment spend of Rwf400 billion (US$397 million) to achieve its universal energy target by 2024. However, for the coming fiscal year (starting July 1), only Rwf40 billion has been allocated.
With the Current electricity connectivity rate at 60.9 per cent (45 per cent grid-connected and 15.9 per cent off-grid access), the REG estimates that meeting the 2024 targets will require all productive users to be connected by the end of the year.
REG also plans to increase new electricity connections by 500,00 annually, with 200,000 grid and 300,000 off-grid connections