Rwanda Secures Rwf430 Billion to Expand Energy Access

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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Building the Investment Ecosystem: Strategic Funding Principles for the One Square Mile Series

– initial investors, private equity, and organizational collaborators

By Sammy CRABBE

No city succeeds just by constructing roads and building towers. Cities that succeed in the modern era create investment ecosystems – interconnected networks of initial investors, venture capital firms, institutional funding sources, accelerators, and innovation centers that foster ongoing development.

The single square mile should not only be built physically; it needs to be financially developed. It has to draw in investors who offer more than just funds, but also connections, knowledge, trustworthiness, and a dedication over time.

A technologically advanced city without a sophisticated financial system is like a castle constructed on sand. The objective of this funding stage is straightforward: establish an investment environment that is robust, purposeful, and mutually reinforcing.

The One Square Mile should not be viewed solely as a real estate project, but rather as a business opportunity. Investors need to understand that they are not purchasing structures – they are investing in Africa's upcoming digital economy center. Early investors must be supported, venture capital must be sought with intention, and institutional funding must be approached with strategy. If the proper financial groundwork is established, money will not just arrive gradually in the city – it will flood in.

Attracting initial key investors – Drivers of progress

Every significant advancement starts with forward-thinking early adopters. For the One Square Mile, obtaining initial key investors is essential not just for financial support but also for creating trust, drawing additional funding, and generating brand enthusiasm. These key players might consist of smart city developers, technology venture capital funds, national wealth funds, diaspora communities, and privately owned equity firms focused on impactful investments.

Systematic, short-term rewards should encourage initial involvement – such as favorable lease agreements, brand recognition opportunities, tax advantages, and entry into innovative programs. However, these incentives need to be in line with the city's principles, making sure that the investment promotes inclusivity, environmental responsibility, and creativity instead of altering the original intent. Choosing investors who offer not only capital but also compatible values and credibility is essential. When executed properly, early supporters transform into advocates and drivers of progress.

Securing investment from venture capitalists and startup financing

The Innovation Hub of One Square Mile, the fintech zone, the smart health system, and the green energy clusters will rely on ongoing startup activities – which, in turn, depend on venture capital. Bringing in VC needs to be a deliberate initiative. The One Square Mile Authority should organize VC Roundtables in locations such as Accra, London, Silicon Valley, and Dubai to highlight new possibilities.

A One Square Mile Innovation Fund might invest alongside local startups, reducing initial financial risks and establishing a flow of innovation. Policies such as favorable startup visas, easier registration processes, and tax benefits for technology investors can also draw interest. Collaborations with groups like AfricArena, VC4A, and ABAN will integrate the One Square Mile into Africa's venture landscape. The goal is to bring in funding that supports entrepreneurs, rather than merely providing financial backing.

Building strong collaborations with organizations for sustained reliability

Although initial investors create momentum, institutional participants – including pension funds, sovereign wealth funds, and DFIs – offer depth and consistency. These collaborators look for good governance, openness, and sustained profits. Infrastructure initiatives – such as fiber networks, water purification systems, transportation, and renewable energy sources – need to be designed to draw in these types of investors.

Long-term leases, annuity systems, and green bonds are likely to attract risk-averse organizations. Clear governance, verified financial reports, public-private partnership structures, and live performance tracking tools will help enhance confidence. Ghana's local pension funds should be utilized initially to establish a domestic example before involving foreign entities. When these institutions invest, they offer more than just funding—they also provide structure, credibility, and oversight.

Designing appropriate financial instruments

To accommodate various investor profiles, One Square Mile needs to create customized investment options. A Real Estate Investment Trust (REIT) would enable wide-scale involvement in the city's real estate growth without requiring direct property ownership. An Infrastructure Debt Fund might appeal to investors looking for steady, contract-based returns in the fixed-income sector.

A Social Impact Fund has the potential to attract funding for affordable housing, education, and local services, achieving a balance between social and financial results. Such funds need to be open about their operations, promoted on a global scale, and in line with worldwide standards to maintain investor trust and ongoing participation.

Branding the investment opportunity

In addition to organizing deals, the city needs to strongly promote itself as an attractive place for investment. This goes beyond sleek advertising – it involves genuine narrative-building: showcasing personal stories, achievements of startups, and key innovation accomplishments. The yearly One Square Mile Investment Summits should bring together investors, business owners, and international media to demonstrate progress.

Participation in international investor gatherings – including the Africa Investment Forum, Abu Dhabi Sustainability Week, and CES – will enhance exposure. By doing so, One Square Mile positions itself not only as an African innovation center, but also as a worldwide attraction for investment.

Conclusion – From a city layout to a capital hub

Successful cities draw more than just technology – they draw faith. By nurturing initial investors, obtaining venture capital, involving institutional collaborators, and creating inclusive investment structures, the One Square Mile can serve as a lure for international funding. Similar to Singapore, Dubai, or Austin, it can develop into a dynamic environment where finance, expertise, and creativity support each other. The One Square Mile should not only focus on being constructed – it should strive to be the most attractive square mile in Africa, providing not only profits, but also transformation and possibilities.

>>>the author is a PhD candidate focusing on blockchains and decentralized finance at the University of Bradford. he possesses an MBA in International Marketing and a postgraduate research certificate from the International University of Monaco. sammy was the inaugural president of the ghana business outsourcing association and pioneered africa's first data entry operation and ghana's first medical transcription company. he can be contacted throughsammyomanye@gmail.com

Provided by SyndiGate Media Inc.Syndigate.info).

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