| Project Detail |
In Rwanda, the project aims to support local development within the framework of the "basket fund" managed by KfW in order to carry out major works in the 16 poorest districts of the country and thus slow the rural exodus aggravated by the effects of climate change.
CONTEXT
With 545 inhabitants per square kilometer in 2020, compared to 47 on average in sub-Saharan Africa, Rwanda is the most densely populated country on the continent.
With the majority of the population living in rural areas, decentralization and local economic development are important issues for reducing inequalities, particularly between cities and rural areas.
A new National Decentralisation Policy was adopted in October 2021 as part of the National Strategy for Transformation covering the period 2017-2024, prioritising local economic development and strengthening local governments.
Despite this policy framework, many districts far from urban centres face a deficit in their public funding, leading to difficulties in accessing public services and livelihoods for the poorest populations. In order to sustainably support this policy, KfW has launched a dedicated fund, with an approach in favour of the poorest, to which AFD is now contributing.
DESCRIPTION
The AFD loan financing will be provided in parallel with a
KfW grant to constitute the initial contribution to a multi-donor "PPD-basket" (PPD for Pro-Poor Development) to finance local economic development projects in the poorest districts of the
country, according to needs and requests expressed directly by the
districts.
The overall objective of this PPD-Basket is to create the conditions enabling
the poorest households to improve their living conditions, by financing the construction of small infrastructures necessary for local public services and economic development in 16 rural districts ("ru-urban").
These 16 districts, far from urban centres and satellite and secondary towns, have the highest poverty rates, benefit the least from public investment, and in which communities are most dependent on central government resources. |
