The addendum, approved 05 February, builds on the Board’s July 2025 approval of a $200 million African Development Bank Group loan and formalises the $100 million AIIB co-financing arrangement as part of a total programme cost of $300 million. It reflects strong collaboration with the Government of Rwanda and will support smoother delivery of results-based financing, with funds released against verified gains in energy access and service quality.

The programme aims to increase access to reliable electricity and promote clean energy solutions by connecting more than 200,000 new customers to the national electricity grid. Roughly 50,000 low-income households will gain access to standalone solar home systems, and over 100,000 clean cooking solutions, including biomass cookstoves and other modern, energy-efficient clean cooking technologies, will be distributed to households and public institutions that include schools. Around 2,000 solar water heaters will be installed for households and SMEs, and 850 industrial and commercial customers will benefit from access to more reliable power.

The project will enable small businesses to extend operating hours. Improved street lighting will strengthen safety at the neighbourhood level. Cleaner cooking solutions will reduce indoor air pollution and improve health outcomes, particularly for women and children, as well as reduce fuel related costs. Over time, stronger and more reliable power services are expected to boost economic productivity and support social development.

The programme is also expected to create at least 6,000 direct and indirect jobs, focusing on 2,000 youth-led SMEs delivering on-grid, off-grid, and productive-use energy solutions.

African Development Bank Country Manager for Rwanda, Aissa Toure Sarr, welcomed the approval, saying: “This partnership demonstrates how coordinated investment can accelerate Rwanda’s transition to clean and reliable energy. It will improve lives, support businesses and strengthen long term climate resilience across communities.”

The Energy Sector Results-based Financing programme aligns with Rwanda’s “Vision 2050” national development plan, which seeks to achieve universal access to modern and sustainable energy services by 2035, and which the Bank Group is supporting.