Saudi Arabia’s SFD funds electricity project in Rwanda

Image: SFD

Saudi Fund for Development (SFD) signed an agreement for a concessional development loan of $20m to finance the electricity delivery project in the Kamonyi District in Rwanda.

The signing ceremony was attended by a number of officials from both sides.

The project aims to build a network of medium and low-pressure power lines and electricity distribution transformers to provide electricity to households, public institutions, and social facilities in the Kamonyi District.

Electricity project is part of a wider community programme in Rwanda

This project is part of a wider Energy Access and Quality Improvement Programme; it’s objective is to improve access to reliable and cost-effective electricity services for several of the most underserved areas in the country.

The programme will benefit approximately 60,000 people and enhance economic, agricultural, and industrial activities, create direct and indirect employment opportunities, improve livelihoods, support Rwanda’s economic growth, and promote sustainable living.

During the signing ceremony, the CEO of SFD, Sultan Al-Marshad, stressed the importance of this project, which will support the Kamonyi region with electricity infrastructure and enhance sustainable economic and social development in Rwanda.

He also praised the 47-year-old relationship between SFD and Rwanda.

In addition, Al-Marshad said, “Based on the cooperation, we hope that this project will be a source of development and bring benefits to Rwanda and its people to achieve the sustainable development goals.”

The Rawandan Minister of Finance and Economic Planning, Dr Uzziel Ndagijimana noted that the financing will contribute to electrification efforts in Kamonyi District which currently stands at 58.9 per cent.

Minister Ndagijimana said, “At the completion of this project, electricity access in Kamonyi District will increase by 6.8 per cent, thus contributing to increase economic and social development within the framework of our National Strategy for Transformation by connecting electricity to more households. It is another step towards our ultimate goal of ensuring all Rwandan citizens have access to electricity by 2024.”

On the sidelines of the signing agreement, SFD CEO visited King Faisal Hospital, one of the most prominent projects financed by the fund in the health sector in Rwanda since 1986 at a value of about $18m.

During the visit,  Al-Marshad checked the hospital’s services and works. SFD also worked to rehabilitate and expand the hospital due to the growing need to enhance the provision of health care by supplying many medical supplies and equipment and establishing outpatient clinics to meet the requirements for hospital services through a loan agreement valued at $12m.

Saudi Arabia has contributed to Rwanda’s economic development by financing various vital projects and developmental programmes. Since 1976, SFD has provided Rwanda with developmental loans to support 11 projects and programmes, totaling approximately $121m.

This support enhanced Rwanda’s developmental sectors and advanced toward the desired economic and social objectives to achieve sustainable development goals.

Read: Saudi Arabia’s National Development Fund disburses over $8bn in financing