WASHINGTON, November 21, 2025 – Rwanda is set to strengthen domestic revenue collection, improve the efficiency and transparency of public spending, and enhance service delivery at both national and local government levels through a new World Bank–supported program that will reinforce the country’s long-term economic transformation and job creation agenda.
The Revenue Improvement and Spending Efficiency Program-for-Results (PforR) aims to modernize tax administration, strengthen public investment management, deepen accountability across government systems, and move forward critical reforms that advance better service delivery and ensure that development outcomes reach citizens and businesses more effectively.
These reforms are fully aligned with the Second National Strategy for Transformation (NST-2), particularly its focus on building a more efficient, transparent, and citizen-centered public sector. They also build on two decades of strong World Bank support to public financial management (PFM) reforms that have made Rwanda a regional leader in efficient and accountable governance.
To advance this agenda, The World Bank’s Board of Executive Directors approved $100 million in International Development Association* (IDA) financing for the program, which will be implemented by the Ministry of Finance and Economic Planning (MINECOFIN) in collaboration with the Ministry of Local Government (MINALOC).
The program focuses on achieving results in three areas:
- Increasing domestic revenue mobilization, including expanding the use of electronic billing machines (EBMs) for value-added tax (VAT) compliance and modernizing property tax registration and valuation systems.
- Enhancing efficiency and transparency of public spending at the national level, through better feasibility studies, improved project execution, institutionalized asset management, strengthened procurement, and enhanced oversight of state-owned companies.
- Improving local-level planning and accountability, ensuring districts prepare evidence-based development strategies, publish budget performance reports, strengthen financial management practices, and design viable local economic development (LED) projects.
“This program reflects our strong partnership with Rwanda and our shared ambition to scale up transformational governance reforms that create jobs, strengthen fiscal resilience, and improve service delivery for all Rwandans,” said Sahr Kpundeh, World Bank Country Manager for Rwanda. “By supporting both national institutions and local government structures, the program reinforces Rwanda’s decentralization agenda and helps ensure that development outcomes reach citizens where they live and work.”
The program comes at a critical time, as Rwanda seeks to modernize its tax administration, reduce leakages through data-driven decision-making, and strengthen the quality and sustainability of public investments. Planned reforms, including piloting AI-enabled functionalities within the Integrated Financial Management Information System (IFMIS), are expected to reduce operational inefficiencies and enhance financial oversight.
“This program represents a significant step forward in Rwanda’s efforts to expand its domestic resource base and ensure that every franc is used efficiently,” said Meron Tadesse Techane, World Bank Senior Financial Management Specialist. “By leveraging technology, strengthening institutions, and incentivizing good practices at both national and district levels, the program will help the government deliver better services, build trust with citizens, and expand opportunities for private sector–led job creation.”
Direct beneficiaries include national ministries, state-owned companies, and all 30 districts, while citizens and businesses will benefit indirectly from a more efficient, transparent, and predictable public finance system, higher-quality services, and better-managed public investments.
*The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 78 poorest countries, 40 of which are in Africa. Resources from IDA bring positive change to the 1.3 billion people who live in IDA countries. Since 1960, IDA has provided $563 billion to 116 countries. Annual commitments have increased steadily and averaged about $34.5 billion over the last three years (FY22-FY24), with about 70 percent going to Africa. Learn more online: IDA.worldbank.org. #IDAworks
Contacts
In Kigali:
Collin Haba
chaba@worldbankgroup.org
In Washington
Daniella van Leggelo-Padilla
dvanleggelo@worldbank.org
