News Column

World Bank Endorses New Partnership Strategy for Rwanda

June 9, 2014

Edwin Musoni

The World Bank has endorsed a new Country Partnership Strategy (CPS) for Rwanda aimed at mobilising financing for three priority areas that are expected to have the greatest impact on the country's development.

Although the new strategy doesn't mention how much the Bank intends to spend on Rwanda, it lists the priority areas as; accelerating private sector-driven growth to create jobs, improving productivity, raising poor peoples' incomes as well as promoting accountable governance.

A statement from the Bank indicates that the priorities will be further strengthened by investing in greater regional integration with Rwanda's neighbours and the rest of the East African Community.

"This is a response strategy meant to support our second phase of Economic Development and Poverty Reduction Strategy. We highly appreciate the Bank's engagements in Rwanda," said Ronald Nkusi, the Director of External Finance Unit at the Ministry of Finance

According to World Bank, Rwanda has registered remarkable progress in recent years and has now got the potential to expand its growth by focusing on export diversification, structural transformation, regional integration and financial sector deepening.

Prepared jointly by the International Development Association (IDA), International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), the new strategy represents a shared view of how resources across the entire Bank Group can best support the government's effort to achieve its national goals.

The Bank's country Director, DiariÉtou Gaye, said: "The Bank's involvement will help Rwanda create jobs for an increasingly urbanised population, as well as help increase agricultural productivity and rural development, which are all crucial for achieving the ambitious goals set by the Rwandan Government."

IFC will provide investments and advisory services to help expand access to finance, promote competitive businesses and investment climate, and support critical sectors of the economy, including agribusiness and infrastructure.

According to IFC's Director for Eastern and Southern Africa, Cheikh Oumar Seydi, "Rwanda's remarkable economic reforms in recent years have promoted investment in infrastructure, agriculture, manufacturing and financial markets. IFC will work across the World Bank Group in partnership with Rwanda's government and private sector to help create new jobs and opportunities for inclusive growth."

MIGA will look for opportunities to support sustainable private sector investments in the power, water, transportation, and agribusiness sectors.

"As Rwanda works to achieve private sector-led growth, MIGA guarantees can offer reassurance for foreign investors, including investors in public-private partnerships," said Michel Wormser, MIGA Vice President and Chief Operating Officer.

The new strategy reflects results of extensive consultations with government, local government officials and Members of Parliament, the private sector, development partners, civil society, and academia.

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Source: AllAfrica

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