The African Development Bank (AfDB) and the Asian Infrastructure Investment Bank (AIIB) have approved more than €260 million in financing to support Rwanda’s efforts to expand access to affordable and reliable energy. The funding will go toward the country’s Energy Sector Result-Based Financing (RBF II) program, which focuses on grid expansion, clean cooking technologies, and institutional development.
The AfDB Board of Directors approved €173.84 million for the program on July 14, with the AIIB contributing an additional €86.92 million. This is AfDB’s second result-based financing initiative in Rwanda’s energy sector, following a similar €305 million operation in 2018. Rwanda’s ongoing use of performance-based financing reflects a policy direction that links funding to measurable outcomes and infrastructure delivery.
Results-Based Financing II aims to connect 200,000 households and 850 commercial or industrial users to the national grid, and provide off-grid power to 50,000 new users. It also includes the distribution of clean cooking devices to 100,000 households and 310 public institutions such as schools and health centers. Street lighting will be installed along 200 kilometres of roads in secondary cities—a move that signals a broader focus on decentralised development beyond the capital.
The program supports Rwanda’s Energy Sector Strategic Plan II (2024–2029), which outlines targets for universal electricity access, improved energy reliability, and increased access to modern cooking solutions. It also aligns with AfDB’s broader regional objectives, including its “Light Up and Power Africa” and “Improve the Quality of Life for the People of Africa” initiatives.
The financing contributes to the Mission 300 Initiative, a collaborative effort between AfDB and the World Bank to connect 300 million people in Africa to electricity by 2030. With around 600 million people across sub-Saharan Africa still without electricity access, Rwanda’s program could inform similar models in other countries seeking to integrate grid and off-grid solutions with clean cooking technologies.
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Rwanda’s electrification rate has increased significantly over the past decade—from under 20% in 2010 to over 70% today. However, affordability, last-mile connectivity, and access to clean cooking solutions remain persistent gaps. According to the International Energy Agency (IEA), close to 970 million Africans still use biomass for cooking, contributing to poor indoor air quality, deforestation, and health risks, particularly for women and children.
By embedding clean cooking within a broader energy access strategy, RBF II reflects a more integrated approach to national energy planning. It also indicates a shift in how governments and finance institutions frame energy policy, seeing it not only as a technical infrastructure challenge but as a critical factor in health, equity, and economic development.
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AfDB continues to prioritise energy access as central to long-term sustainability and growth. Rwanda’s approach, backed by coordinated financing and outcome-based planning, could offer a practical reference point for other countries advancing toward Sustainable Development Goal 7: universal access to affordable, reliable, and modern energy by 2030.
