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IDA Grant: US$6 million

PROJECT DESCRIPTION: The additional financing grant will focus on the financial sector in Rwanda. It will support the Government’s Financial Sector Development Program (FSDP) in five high priority areas: (i) building capacity in the microfinance sector; (ii) developing accounting and auditing standards; (iii) enhancing the regulation and supervision of Non Bank Financial Institutions (NBFI); (iv) strengthening the national pension fund, Caisse Sociale du Rwanda (CSR); and (v) modernizing the payment system. The FSDP was completed in 2007 and is an important part of the Government’s recent Economic Development and Poverty Reduction Strategy (EDPRS).

For more information, please call Herbert Yusimbom Boh at (202) 473-3548 or email hboh@worldbank.org

For project documents, please visit:

http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=368651&menuPK=368755&Projectid=P106978

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Contacts:        

In Washington: Herbert Boh 202 473 3548

hboh@worldbank.org

In Kigali: Rogers Kayihura (250) 591 3003

rkayihura@worldbank.org

WASHINGTON,April 24, 2008 – The World Bank Board of Executive Directors today approved a US$6 million additional financing grant for the Rwanda Competitiveness and Enterprise Development Project, (CEDP). The grant builds on the achievements of the original International Development Association (IDA) credit of US$40.8 million which was approved in 2001.

The original CEDP project’s overall objective is to establish an enabling environment for growth and development of the private sector that would help reduce poverty in Rwanda. The project is designed to promote a competitive climate by: (i) streamlining the business environment; (ii) reducing costs and increasing the efficiency of telecommunications, water & electric utilities, and the tea industry; and (iii) improving access to financial and support services to local entrepreneurs.

The additional financing grant will focus on the financial sector, an important part of the business environment. It will support the Government’s Financial Sector Development Program (FSDP) in five high priority areas: (i) building capacity in the microfinance sector; (ii) developing accounting and auditing standards; (iii) enhancing the regulation and supervision of Non Bank Financial Institutions (NBFI); (iv) strengthening the national pension fund, Caisse Sociale du Rwanda (CSR); and (v) modernizing the payment system. The FSDP was completed in 2007 and is an important part of the Government’s recent Economic Development and Poverty Reduction Strategy (EDPRS).

 “The additional financing grant is timely. It will support the implementation of the FSDP and, hence, contribute to strengthening the growing financial sector in Rwanda, says Amadou Dem, World Bank Task Team Leader for the Project.

With the new activities supported by the grant, NBFI and Micro Finance Institutions (MFIs) are expected to be better supervised; the capacity of the microfinance industry will be strengthened; international accounting and auditing standards will be adopted and implemented by all financial institutions; and the country payment system will be modernized with an Automated Clearing House (ACH) and a Real Time Gross Settlement (RTGS) system.

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For more information on the World Bank’s work in sub-Saharan Africa visit: www.worldbank.org/afr

For more information about World Bank’s activities in Rwanda visit: www.worldbank.org/rwanda

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