Project Detail |
The Basket Funding for Pro-Poor Development (PPD-Basket) is a joint fund funded by the French Development Agency (AFD), the Kreditanstalt für Wiederaufbau (KfW), and the Grand Duchy of Luxembourg. It aims to support the Rwandan governments efforts for local economic development (LED) and poverty reduction in the 16 most disadvantaged districts of the country. The objective, in particular, is to reduce inequality between urban and rural areas, and to bring tangible improvements to the well-being of the most vulnerable communities.
The PPD-Basket focuses on financing local investment projects, proposed by districts, that stimulate inclusive growth, particularly in the agricultural sectors, or improve access to public services such as health, education, water and sanitation. The approach also includes support for environmental and social impact assessment studies, as well as strengthening actors on cross-cutting themes, particularly gender and climate resilience.
An initial selection of 48 LED projects was proposed by the Local Administrative Entities Development Agency (LODA) and validated by the steering committee in December 2023, for an estimated amount of EUR 8,500,000, including almost the entire Luxembourg contribution.
As part of an interim phase pending the recruitment of technical assistance by KfW planned for mid-2024, this selection met restricted eligibility conditions (reduced budget, no expropriation, predefined sectors) in order to minimize risks.
The selected projects come from priority investment plans established by each district. The selection is based on:
on the one hand, on the distribution of the financial envelope between the 16 targeted districts, based on the total population, the population below the poverty level and, to a lesser extent, the area of ??the district;
and, on the other hand, on the order of priority set by each district.
The PPD-Basket is organized in the form of three complementary pillars:
improvement of the regulatory and operational framework for LED projects;
financing and support for the implementation of inclusive LED projects in poor rural districts;
technical support and capacity development of districts for the implementation of LED projects and LODA for the management of PPD-Basket and support to districts. |