The African Development Bank Group, in partnership with the Asian Infrastructure Investment Bank and the Government of Rwanda, has launched the Energy Sector Results-Based Financing Phase II (RBF II) Program aimed at accelerating universal access to reliable, affordable and clean energy across the country.
The second phase of the programme carries a total investment value of US $300M, comprising a US $200M loan from the African Development Bank and US $100M from AIIB. The initiative will be implemented by Rwanda’s Ministry of Infrastructure through the Rwanda Energy Group, alongside the Energy Development Corporation Limited (EDCL) and the Energy Utility Corporation Limited (EUCL).
RBF II builds on the achievements recorded under the first phase of the programme, which expanded energy access through deployment of off-grid solutions to at least 370,000 households. The first phase also enabled 460,000 people to gain access to clean cooking technologies, benefiting more than two million people overall while supporting employment creation across the energy value chain.
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Results-based financing model
The programme uses a results-based financing model in which disbursements are tied to independently verified outcomes. The approach is designed to strengthen electricity transmission and distribution systems, improve reliability of supply, and expand both on-grid and off-grid electricity access.
According to Jean Bosco Mugiraneza, Director General for Energy at Rwanda’s Ministry of Infrastructure, lessons learned from the first phase strengthened implementation systems and accountability mechanisms, providing a foundation for faster connections and improved service delivery under the second phase.
Under RBF II, four substations will be rehabilitated and approximately 3,855 km of medium- and low-voltage transmission lines constructed. The programme is expected to connect an additional 200,000 households and 850 commercial users to the national grid, while a further 50,000 electricity connections will be delivered through off-grid systems.
The initiative will also distribute clean cooking devices to 100,000 households and 310 public institutions, and install street lighting along 200 km of roads in secondary cities across Rwanda. The increased electrification will help reduce operating costs for small and medium-sized enterprises, expand productive energy use in rural communities, and improve the reliability of critical services such as healthcare, contributing to broader economic growth and improved livelihoods.
Aissa Toure Sarr, Country Manager for Rwanda at the African Development Bank Group, described the programme as a major investment that will support Rwanda’s progress toward universal energy access through a combination of co-financing, accountability and performance-based implementation.
The launch event also included a technical workshop involving government agencies, development partners and implementing institutions to coordinate procurement, financial management, environmental and social safeguards, and monitoring systems. RBF I and II support Rwanda’s target of achieving universal electricity access by 2030 and complement wider African Development Bank-backed energy initiatives in the country, including the Ruzizi III Hydropower Project and the Rwanda Transmission System Reinforcement and Last Mile Connectivity programme.
