First reported earlier in December 2021, Rwanda’s Ministry of Finance and Economic Planning has agreed to borrow over $100 million from the Asian Infrastructure Development Bank to fund broadband and digitise public services.
The loan agreement worth approximately RWF 100 billion was signed on 23 December. It will fund Rwanda’s USD 200 million Digital Acceleration Project with World Bank co-financing.
The objective of the Digital Acceleration Project is to support Rwanda’s short-run and long-term recovery from the pandemic and resilience to future pandemics by increasing access to broadband and selected digital public services, and strengthening the digital innovation ecosystem. The project has four main components namely Digital Access and Inclusion; Digital public service delivery; Digital Innovation and Entrepreneurship; and Project Management.
“The project will complement Government of Rwanda’s efforts in recovery and resilience to and post covid-19 pandemic and in implementing the National Strategy for Transformation, with a focus on the priority to establish Rwanda as a globally competitive knowledge-based economy”.said the Minister of Finance and Economic Planning, Dr. Uzziel Ndagijimana.
“This marks the first digital acceleration investment, the bank is making in sub-Saharan Africa. It is also the second project we are funding in region and both happen to be in Rwanda. We believe that these are first steps towards long term development relationship between Rwanda and the Bank,” AIIB’s Director General of the Banking Department, Mr. Najeeb Haider saidhe added.
“The additional financial support from AIIB into the Rwanda Digital Acceleration Project is an encouraging step towards realizing Rwanda’s vision to become a digital economy. While we are already cashing in on past investments in ICT and leveraging existing digital infrastructure, this financing agreement is a timely commitment that will allow us to further develop our broadband market and enhance Rwanda’s digital innovation ecosystem”.said the Minister of ICT and Innovation Paula Musoni.
Rwanda became a member of the Asian Infrastructure Investment Bank a year ago and has so far accessed financing worth US$ 200 to fund two key projects which include Finance for Recovery and Resilience (the Economic Recovery Fund and the just signed Rwanda Digital Acceleration Project, which are co-funded by World Bank.
