AfDB, AIIB Mobilize $300m to Expand Rwanda’s Energy Access

The African Development Bank (AfDB) Group has approved an addendum unlocking stronger financing arrangements for Rwanda's flagship Energy Sector Results-Based Financing Programme, formalizing a $100 million co-financing package from the Asian Infrastructure Investment Bank (AIIB).

The approval, granted on 5 February, confirms the AfDB's dual role as administrator of the AIIB loan and coordinating institution under a shared results framework — bringing total programme financing to $300 million.

The move builds on the AfDB Board's July 2025 approval of a $200 million loan, consolidating a joint funding structure designed to accelerate verified gains in energy access and service quality.

Results-Based Financing Tied to Measurable Impact

The programme operates under a results-based financing model, meaning funds are disbursed only after independently verified achievements in expanding electricity access and improving service reliability.

This structure aims to ensure accountability, transparency and tangible outcomes in line with Rwanda's national energy targets.

The coordinated approach between AfDB and AIIB reflects growing multilateral collaboration in financing large-scale energy transitions across Africa.

200,000 New Grid Connections and Clean Energy Expansion

The programme will significantly expand energy access across Rwanda, delivering:

• More than 200,000 new national grid connections

• 50,000 low-income households receiving standalone solar home systems

• Over 100,000 clean cooking solutions, including improved biomass cookstoves and modern energy-efficient technologies

• 2,000 solar water heaters installed for households and small and medium-sized enterprises (SMEs)

• 850 industrial and commercial customers gaining access to more reliable electricity

Public institutions, including schools, will also benefit from clean cooking and improved power supply.

Boosting Jobs, Businesses and Community Safety

Beyond expanding access, the programme is designed to stimulate economic activity and social development.

Expected impacts include:

• Small businesses extending operating hours due to reliable electricity

• Improved street lighting enhancing neighborhood safety

• Reduced indoor air pollution from cleaner cooking technologies

• Lower household fuel costs

• Stronger productivity across commercial and industrial sectors

The initiative is projected to generate at least 6,000 direct and indirect jobs, with a focus on 2,000 youth-led SMEs delivering on-grid, off-grid and productive-use energy services.

Supporting Rwanda's Vision 2050

The investment aligns with Rwanda's Vision 2050 development strategy, which targets universal access to modern and sustainable energy by 2035.

African Development Bank Country Manager for Rwanda, Aissa Toure Sarr, described the programme as a catalyst for long-term resilience.

"This partnership demonstrates how coordinated investment can accelerate Rwanda's transition to clean and reliable energy," Sarr said.

"It will improve lives, support businesses and strengthen long term climate resilience across communities."

Strengthening Climate and Energy Resilience

Rwanda has emerged as one of Africa's leaders in clean energy expansion, combining grid extension with off-grid solar solutions and clean cooking initiatives.

By blending multilateral financing and linking disbursement to verified outcomes, the $300 million programme positions Rwanda to:

• Accelerate universal energy access

• Reduce reliance on traditional biomass fuels

• Lower greenhouse gas emissions

• Build resilient infrastructure

• Strengthen inclusive economic growth

The approval underscores growing international support for results-driven, climate-aligned investments aimed at transforming Africa's energy landscape.