In a bid to bolster Rwanda’s social and economic growth, Saudi Arabia has pledged a soft loan of $20 million (£15 million) towards an electricity project in the African country, according to an announcement by the Saudi Press Agency on Tuesday.
The funding agreement was officiated in Rwanda’s capital, Kigali, by the CEO of the Saudi Fund for Development (SFD), Sultan Al-Marshad, and Rwanda’s Minister of Finance and Economic Planning, Ndagijimana Uzziel.
The initiative aims to construct a network of medium and low voltage lines, as well as power distribution transformers, for residential and government social services in the Kamonyi region of Rwanda.
The project is forecasted to benefit over 60,000 people in the country by providing them access to electricity. It is also expected to bolster various job creation initiatives across industries such as agriculture.
During the signing ceremony, Al-Marshad lauded the project’s potential in enhancing Rwanda’s electrical infrastructure and promoting sustainable socio-economic development. He noted that the SFD has maintained a successful working relationship with Rwanda over the past 47 years.
He said, “Based on the development cooperation between the two sides, we anticipate that this project will contribute to development and will aid Rwanda and its people in achieving growth and prosperity, advancing the goals of sustainable development.”
Uzziel indicated that the electricity provision in the Kamonyi region, which currently stands at 58.9%, would see an increase of 6.8%, catalysing economic and social development. He also mentioned the government’s ambition to reach 100% electricity coverage by 2024.
Al-Marshad paid a visit to the 200-bed King Faisal Hospital in Kigali during his trip, a facility that the SFD financed in 1986, which started operations in 1993.
Saudi Arabia’s support for Rwanda dates back to 1976. Through the SDF, the Kingdom has granted 11 developmental loans, amounting to $121 million (£91 million), to Rwanda for a range of critical projects.
Image Credit: Rwanda in UAE
