WASHINGTON, November 29, 2011 — The World Bank Board of Executive Directors approved financing to the Government of Rwanda in the amount of US$125 million. The Eighth Poverty Reduction Support Financing (PRSF-8) will help the Government’s implementation priorities in its medium term strategy, the Economic Development and Poverty Reduction Strategy (EDPRS). Given Rwanda’s status as a blend country, US$60 million of the funds are on IDA grant terms and US$65 million are on IDA credit terms.
The PRSF-8 is the first operation in the third series of World Bank Poverty Reduction Support operations for Rwanda launched in 2002. The new series particularly supports the development of policies that facilitate increased private sector investment and involvement and ease constraints to broad based growth.
“This main focus, on creating opportunity for growth and harnessing private sector growth for sustainable poverty reduction, reflects the key thrust of the new World Bank Strategy for Africa.” said Mimi Ladipo, World Bank Country Manager for Rwanda.
During the PRSF8-10 priority areas of support will be policy measures aimed at: (i) supporting the facilitation of trade and investments; (ii) increasing access to electricity and improved infrastructure services; (iii) raising private sector participation in the agricultural sector; (iv) increasing the quality and relevance of education to build a skilled workforce; (v) improving service delivery through focused and strategic civil service reform; and (vi) strengthening the management of public resources, including increasing transparency and accountability.
The PRSF-8 financing is dependent on progress against EDPRS objectives as measured by the Common Performance Assessment Framework relied upon by all budget support partners in Rwanda. The most recent XIV Joint Budget Support Review, held on October 24-25, 2011, showed that Rwanda is making good progress in terms of implementing the targets and policy actions within the harmonized framework of budget support. “The proposed US$125 million in IDA commitments for this operation is the largest single development policy financing tranche to Rwanda so far. It reflects the World Bank’s positive assessment of the Rwandan Government’s continued commitment to reforms that can lead to inclusive and broad based development.” said Birgit Hansl World Bank Task Team Leader.
The Rwanda IDA portfolio comprises eight investment projects with a net commitment of US$277 million.