The Saudi Fund for Development (SFD has signed an agreement for a concessional development loan of $20 million to finance the electricity delivery project in the Kamonyi District.
The project aims to build a network of medium and low-pressure power lines and electricity distribution transformers to provide electricity to households, public institutions, and social facilities in the Kamonyi District.
During the signing ceremony, the CEO of SFD, Sultan Al-Marshad, stressed the importance of this project, which will support the Kamonyi region with electricity infrastructure and enhance sustainable economic and social development in Rwanda. He also praised the 47-year development of relations between SFD and Rwanda.
This project is part of a wider Energy Access and Quality Improvement program whose objective is to improve access to reliable and cost-effective electricity services for several of the most underserved areas in the country.
This program will benefit approximately 60,000 people and enhance economic, agricultural, and industrial activities, create direct and indirect employment opportunities, improve livelihoods, support Rwanda’s economic growth, and promote sustainable living.
In addition, Al-Marshad said, “Based on the cooperation, we hope that this project will be a source of development and bring benefits to Rwanda and its people to achieve the sustainable development goals.”
The Minister of Finance and Economic Planning, Dr. Uzziel Ndagijimana noted that the financing will contribute to electrification efforts in Kamonyi District which currently stands at 58.9%.
Minister Ndagijimana said, “At the completion of this project, electricity access in Kamonyi District will increase by 6.8%, thus contributing to increase economic and social development within the framework of our National Strategy for Transformation by connecting electricity to more households. It is another step towards our ultimate goal of ensuring all Rwandan citizens have access to electricity by 2024.”
Saudi Arabia has contributed to Rwanda’s economic development by financing various vital projects and developmental programs including the King Faisal Hospital which was established in 1993, with a capacity of 200 medical beds, benefiting thousands of patients until now. The hospital has also impacted by supporting the provision of direct and indirect job opportunities and improving health care in the Republic.
Since 1976, SFD has provided Rwanda with developmental loans to support 11 projects and programs, totaling approximately USD 121 million. This support enhanced Rwanda’s developmental sectors and advanced toward the desired economic and social objectives to achieve sustainable development goals.