Rwanda's initiatives to enhance electricity infrastructure and access to clean energy have gained a fresh momentum, with €260.76 million (approximately Rwf435 billion) allocated for a related project—the Rwanda Energy Sector Result-Based Financing (RBF II) program, as stated in a July 17 release by the African Development Bank (AfDB) Group. The funding comprises €173.84 million (approximately Rwf290 billion) approved by the AfDB Group on July 14, along with an additional €86.92 million (approximately Rwf145 billion) from the Asian Infrastructure Investment Bank. ALSO READ: Rwanda needs $1.5bn to achieve universal energy access by 2029 The AfDB mentioned that the program funds will be used to expand electricity access—both grid-connected and off-grid—modernize electricity infrastructure, promote clean cooking technologies, and strengthen institutional capacity. Regarding the anticipated impact, it mentioned that it will connect 200,000 households and 850 productive use customers to the national grid, add 50,000 new electricity connections through off-grid solutions, provide clean cooking devices to 100,000 households and 310 public institutions, and install street lighting on 200 kilometers of roads in secondary cities across Rwanda. ALSO READ: Kwibohora 31: Rwanda’s electricity access rose from 1% to 83.2% in three decades The AfDB noted that the RBF II program is based on Rwanda’s Energy Sector Strategic Plan (ESSP II 2024–2029) and aims to improve residents' quality of life, drive economic growth, and reduce poverty through targeted investments in the energy sector. It said that the Board approval marks the African Development Bank’s second result-based energy sector operation in Rwanda, following a program funded at $305 million (approximately Rwf438 billion at current exchange rates) approved in September 2018. This indicates Rwanda's preference for a performance-based financing approach in closing power infrastructure gaps, the AfDB observed. The RBF II program, the AfDB pointed out, is a key deliverable under the Bank’s High-5 priority areas of “Light up and Power Africa” and “Improve the Quality of Life of the People of Africa.” Additionally, it will contribute to achieving the Mission 300 Initiative of the African Development Bank and the World Bank to connect 300 million Africans to electricity by 2030. Trends in energy generation and access According to Rwanda’s Energy Sector Strategic Plan (ESSP II 2024–2029), developed by the Ministry of Infrastructure, the baseline for generation capacity by the end of 2023/2024 was 400 MW. Over the period of 2024–2029, the goal is to steadily increase the generation capacity to more than 410 MW by 2025/26 and 615.303 MW by the end of the 2028/29 period. This "ambitious target will significantly contribute to meeting the growing demand for electricity, thereby supporting economic growth, enhancing living standards, and promoting sustainable development," the blueprint states. During the seven-year implementation of the first National Strategy for Transformation (NST1), which started in 2016/2017 and ended in 2023/2024, the government made substantial investments in the energy sector. As a result, electricity access increased, reaching 76.2 percent of Rwandan households. ALSO READ: Over 1.5m new households connected to electricity since 2017 – PM Meanwhile, data from the Rwanda Energy Group shows that the cumulative connectivity rate in Rwanda is 82.2 percent of Rwandan households, as of the end of February 2025—comprising 57.4 percent connected to the national grid and 24.8 percent accessing through off-grid systems (mainly solar). One of the main targeted interventions outlined in the ESSP is connecting over 1.1 million new households to the grid, an initiative aimed at extending the benefits of electricity access to previously underserved areas, thereby improving the quality of life for millions of people, according to the strategic plan. The productive user access to electricity was projected to gradually increase from the current 86 percent in 2023/24 to 100 percent by the end of 2028/29, it is indicated. As noted, achieving this goal will have a profound impact, boost economic activities, and foster an environment conducive to entrepreneurship and innovation.
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