AfDB, AIIB and Rwanda Launch $300 M Energy Program to Expand Universal Electricity Access

The African Development Bank Group, in partnership with the Asian Infrastructure Investment Bank (AIIB) and the Government of Rwanda, has launched a major $300 million energy programme aimed at accelerating universal access to reliable, affordable, and clean energy across the country.

The initiative, known as the Energy Sector Results-Based Financing Phase II (RBF II) Program, seeks to expand electricity access, strengthen grid infrastructure, improve energy reliability, and promote clean cooking solutions as Rwanda continues efforts to achieve universal electricity access by 2030.

The programme reflects growing international support for Rwanda’s energy transition and broader economic development agenda.

Major Multilateral Financing Partnership

The total cost of the programme is estimated at $300 million.

Funding includes:

• $200 million loan from the African Development Bank Group

• $100 million loan from the Asian Infrastructure Investment Bank (AIIB)

Officials described the project as an example of strong multilateral cooperation designed to scale up development impact in Rwanda’s energy sector.

The programme will be implemented by Rwanda’s Ministry of Infrastructure through:

• Rwanda Energy Group (REG)

• Energy Development Corporation Limited (EDCL)

• Energy Utility Corporation

The financing arrangement is expected to strengthen Rwanda’s ability to accelerate energy access while improving service quality and expanding infrastructure nationwide.

Building on the Success of Phase One

The second phase of the programme builds on the achievements of the first Results-Based Financing initiative, which significantly expanded energy access throughout Rwanda.

According to project officials, Phase I successfully:

• Reached at least 370,000 households with off-grid energy solutions

• Provided access to clean cooking for approximately 460,000 people

• Improved the lives of more than two million people overall

• Supported employment creation across the energy value chain

The earlier phase also helped strengthen institutional systems, implementation capacity, and accountability mechanisms within Rwanda’s energy sector.

Officials say the success of the first programme created a strong foundation for expanding investments under Phase II.

Results-Based Financing Approach Focuses on Accountability

A key feature of the programme is its performance-based financing structure.

Under the results-based financing model, disbursement of funds is linked directly to independently verified outcomes and performance targets.

The approach is intended to:

• Strengthen accountability

• Improve implementation efficiency

• Ensure measurable development impact

• Encourage institutional performance

The programme will support improvements in:

• Electricity transmission networks

• Distribution systems

• Grid reliability

• On-grid electricity connections

• Off-grid energy access

Rwandan officials say the model has already helped improve implementation systems during the first phase.

“The results-based approach under RBF I strengthened our implementation systems and accountability,” said Jean Bosco Mugiraneza, Director General for Energy at Rwanda’s Ministry of Infrastructure.

“We are building on these lessons to accelerate connections, improve service reliability, and deliver greater impact for households, businesses, and productive users across Rwanda.”

Major Expansion of Electricity Infrastructure

The programme includes large-scale investments in Rwanda’s electricity infrastructure.

Key infrastructure projects include:

• Rehabilitation of four substations

• Construction of approximately 3,855 kilometers of medium- and low-voltage transmission lines

These upgrades are expected to strengthen grid stability, improve electricity distribution, and reduce outages.

The programme also aims to expand electricity access through both grid-based and off-grid systems.

Targets include:

• Connecting an additional 200,000 households to the national grid

• Connecting 850 commercial users

• Delivering 50,000 new off-grid electricity connections

Officials say the combination of grid and off-grid expansion is critical for reaching remote and underserved communities.

Clean Cooking and Public Services Included

In addition to electricity access, the programme places strong emphasis on clean cooking and public infrastructure.

The initiative aims to provide:

• Clean cooking devices to 100,000 households

• Clean cooking access to 310 public institutions

Clean cooking solutions are considered important for reducing indoor air pollution, improving public health, and lowering dependence on traditional biomass fuels.

The project will also install street lighting along 200 kilometers of roads in secondary cities across Rwanda.

Officials say improved lighting infrastructure can enhance:

• Public safety

• Urban mobility

• Economic activity

• Local business development

Economic Benefits Expected Across Rwanda

The programme is expected to generate broad economic and social benefits across the country.

According to project officials, increased electrification will:

• Lower operating costs for businesses

• Improve productivity for SMEs

• Enable productive energy use in rural communities

• Strengthen healthcare delivery

• Improve livelihoods

• Support inclusive economic growth

Reliable electricity access is increasingly viewed as essential for industrialization, digitalization, education, healthcare, and private sector development.

Officials believe the programme could help accelerate Rwanda’s broader economic transformation goals.

African Development Bank Highlights Transformational Impact

Speaking at the launch event, African Development Bank Country Manager for Rwanda Aissa Toure Sarr described the programme as a transformative investment.

“The Energy Sector Results-Based Financing II Program is a transformative investment that will accelerate Rwanda’s progress toward universal energy access,” Sarr said.

She emphasized that collaboration between the African Development Bank, AIIB, and the Government of Rwanda is helping scale up impact while ensuring efficiency and accountability.

“Through our partnership with AIIB and the Government of Rwanda, we are leveraging co-financing to scale impact while ensuring accountability, efficiency, and tangible results for communities across the country,” she added.

Technical Workshop Focuses on Implementation

Following the launch, officials and development partners held a high-level technical workshop focused on programme implementation.

The workshop brought together:

• Government institutions

• Development partners

• Implementing agencies

• Technical experts

Discussions focused on:

• Procurement systems

• Financial management

• Environmental safeguards

• Social safeguards

• Monitoring and evaluation systems

The workshop aimed to strengthen coordination and ensure effective implementation of the programme across multiple institutions.

Supporting Rwanda’s Universal Energy Access Goals

Rwanda has set an ambitious target of achieving universal electricity access by 2030 as part of its national development strategy.

The RBF I and RBF II programmes are considered key pillars supporting that objective.

The initiative also aligns with the African Development Bank Group’s strategic “Four Cardinal Points” vision, which emphasizes:

• Climate-resilient infrastructure

• Bridging rural-urban infrastructure gaps

• Sustainable development

• Climate adaptation

Officials say the programme is designed to ensure energy infrastructure remains resilient to climate-related shocks and future environmental challenges.

Part of Broader Energy Investment Portfolio

The RBF II programme forms part of a broader portfolio of African Development Bank-supported energy projects in Rwanda.

Other major initiatives include:

• The Ruzizi III Hydropower Project

• Rwanda Transmission System Reinforcement and Last Mile Connectivity Programme

Together, these projects aim to strengthen Rwanda’s energy generation, transmission, and distribution capacity while improving access for households and businesses.

Rwanda Emerging as Regional Energy Development Model

Rwanda has increasingly gained recognition for its progress in expanding electricity access and promoting clean energy solutions.

The country has invested heavily in:

• Renewable energy

• Rural electrification

• Off-grid technologies

• Energy sector reforms

• Climate-resilient infrastructure

International development institutions view Rwanda as one of Africa’s leading examples of integrating energy access with broader economic and social development goals.

Officials hope the new financing programme will further accelerate progress while improving quality of life, strengthening economic opportunities, and supporting sustainable development across the country.