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Ingredients for Accelerating Universal Electricity Access: Lessons from Rwanda’s Inspirational Approach

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In just 15 years, Rwanda has increased its electricity access to 75% from 6% in 2009. This took government ownership, leadership, and commitment, partnership with the private sector, funding from development partners, and dedicated structure and institutional strengthening.

The goal of lighting up every household is not a dream, but an achievable reality. In a remarkable 15-year journey, Rwanda increased access to electricity to households from 6% in 2009 to 75% as of March 2024. The country has connected 100% of health centers and administrative facilities at the sector level and 84% of schools and most productive users (micro, small, and medium-sized enterprises). This electrification expansion was one of the fastest in the world between 2010 and 2020, ranking 11th globally and 3rd in Africa.

What did it take for Rwanda to achieve this, and what can other countries learn from this experience?

Government ownership, leadership, and commitment to universal electrification. Since 2008, the Government of Rwanda (GoR) has been intentional in engraining electrification targets in its development strategies. The Economic Development and Poverty Reduction Strategy 1 (EDPRS1 2008-2012) set out targets for electricity connections from 70,000 to 200,000 households, and for institutions providing social and administrative services from 50% to 80%. Likewise, both the EDPRS2 (2013-2018), and the National Strategy for Transformation 1 (2017-2024) set a universal electrification target by 2024.

An accountable and dedicated structure. The Electricity Access Rollout Program was set up in 2008 with a mandate to implement the government’s spatial least-cost electricity investment program, anchored on an investment prospectus that integrates technical, financial, and implementation planning components. Following the sector reforms in 2013, the energy sector oversight, management, and operation became the primary responsibility of three institutions:

Ministry of Infrastructure (MININFRA) for overall policy and strategy of the energy sector and coordination of the development of the electricity sub-sector,
Rwanda Utilities Regulatory Authority to regulate energy resources, and
Rwanda Energy Group (REG) which has two subsidiaries: Electricity Utility Corporation Limited for utility operations, and Energy Development Corporation Limited (EDCL) for planning, new energy development activities, and electrification rollout.

In addition, the government adopted policies to support the uptake of off-grid Solar Home Systems (SHS) through the private sector. It also mandated the Development Bank of Rwanda (BRD) to support EDCL by providing financial intermediary services through credit lines and results-based financing to scale up the rollout of SHS – recognizing the importance of the dual track of grid and off-grid electrification in speeding up electrification.

For accountability and performance monitoring, REG and EDCL management sign annual performance contracts (imihigo), committing to achieving the annual electrification targets.

Institutional strengthening and capacity building. EDCL has developed the capability to achieve electrification targets and continuously introduce flexibility through various rollout mechanisms to accelerate the pace of electrification. It is now self-sufficient in delivering long and short-term least-cost geo-spatial electrification plans, and is using a mix of international engineering, procurement and construction contractors and in-house and locally based contractors for grid extensions and last-mile connections. Additionally, BRD and EDCL have continued to support each other in advancing off-grid electrification, learning from experience, and continuously adapting a mix of strategies to support the private sector, including programs for affordability to fast-track off-grid electrification.

Funding availability and strong partnerships. Electrification rollout is expensive. It, therefore, requires sufficient funding and dependable partners. Concessional financing from development partners is the predominant source of funds for developing countries which, once secured, recipients should deploy efficiently. The GoR has intentionally formed strong partnerships with development partners and other relevant sector stakeholders. In 2008, the government, supported by the World Bank, worked with development partners to design the Energy Sector-Wide Approach (eSWAp). Its main objective is to enable expansion of access to electricity to meet Rwanda’s national targets. Under the eSWAP, the sector involves all relevant stakeholders in implementing the Economic Development and Poverty Reduction Strategy, including decisions related to sector strategies, planning, implementation, monitoring, and mobilizing of resources. A sector working group chaired by the Ministry of Infrastructure and co-chaired by development partners in rotation, comprising all relevant stakeholders, guides the eSWAP.

Since the first financing round table held in 2009, Rwanda has mobilized over $1.4 billion from different development partners for electrification, with approximately $750 million from the World Bank. The GoR provides counter-funds of up to 10% through the utility and is reinjecting beneficiaries’ connection fees into the electrification program.

Involvement of the private sector: The GoR has involved the private sector in the rollout of off-grid SHS, connecting 22% of households through SHS. BRD and EDCL have designed funding mechanisms to support the private sector with capital requirements, paying close attention to the evolving realities and challenges and adjusting the program’s implementation in response. A Rwanda-pioneered pro-poor results-based financing program (implemented under the Renewable Energy Fund and the Energy Access and Quality Improvement Project) has successfully helped address affordability and proved successful in the fast-paced rollout of SHS.

Wholistic reforms. Following the structural energy sector reform in 2013, between 2017 and 2020, the government introduced several policies under the $475 million Rwanda Energy Sector Development Policy Operation to ensure fiscal prudence and sustainable electricity sector and service expansion. The policy changes included tariff reforms, least-cost geo-spatial planning along the electricity supply chain, policies to address affordability constraints, inclusion of off-grid in electrification planning, as well as the efficiency and accountability of the utility. As a result, Rwanda has maintained electricity sector subsidies below 1.4% of GDP while aggressively expanding electrification.

Rwanda’s success in increasing access to electricity demonstrates that with the appropriate combination of ingredients, countries can accelerate their efforts to achieve universal electrification and meet Sustainable Development Goal 7 (SDG7), helping ensure affordable, reliable, sustainable, and modern energy to all.

Distributed by APO Group on behalf of The World Bank Group.

India-Democratic Republic of Congo Foreign Office Consultations

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The First Foreign Office Consultations (FOC) between India and Democratic Republic of Congo (DRC) was held on 10 April 2024 in New Delhi. The Indian side was led by Shri Sevala Naik Mude, Additional Secretary (Central&West Africa Division), Ministry of External Affairs and the DRC side was led by Mr. Wabenga Kaleo Theo, Permanent Secretary, Ministry of Foreign Affairs and Francophonie.

Both sides carried out a comprehensive review of the existing bilateral relations including strengthening of cooperation in trade and economic relations, mining, agriculture, development partnership, defence, science&technology, digital public infrastructure, green energy, culture, and people-to-people ties. The two sides also exchanged views on regional and international issues of mutual interest, including cooperation in the UN and other multilateral fora.

India and DRC have traditionally enjoyed warm and cordial relations. The bilateral trade between India and DRC is growing at a healthy rate and has increased from US$ 321 million in 2018-19 to US$ 845 million in 2022-23. Both sides are keen to explore new avenues of cooperation.

The talks were held in a friendly and cordial atmosphere. Both sides agreed to hold the next consultations in Kinshasa (DRC) at a mutually convenient date.

Distributed by APO Group on behalf of Ministry of External Affairs – Government of India.

Unlocking Malawi’s Trade Barriers Through One-Stop Border Posts

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Malawi’s economy suffers from a lack of investment and high trade costs due to poor logistics and infrastructure; Clearing goods at the Malawi-Dedza border post with Mozambique previously took an average of three days; One-Stop Border Posts (OSBPs) reduce border waiting times and the cost of cross-border transactions.

The Dedza border post, situated between Malawi and Mozambique, is a busy place. On average, more than 80 trucks are cleared daily, carrying shop merchandise from South Africa to Malawi including fertilizers for Malawi’s agriculture sector.

For the past few years, before the construction of the new One-Stop Border Post (OSBP) facility, it took about 24 to 36 hours to clear a truck carrying items such as wheat, fertilizers, groceries, and raw materials for Malawi’s manufacturing industry. Drivers and clearing agents had to dash from one office to another between the two countries to clear the goods. Malawian traders traveling to and from South Africa through the Dedza–Mozambique border had difficulty locating the appropriate offices to present the required paperwork. In addition, the lack of parking facilities meant that the road leading to the border post was always congested, as trucks scrambled for space to park while waiting to be cleared.

Establishing One-Stop Border Posts

In 2015, the Government of Malawi embarked on an ambitious program to construct border posts in Dedza and Mwanza (both bordering Mozambique) and Songwe (bordering Tanzania), set up OSBPs with these neighboring countries, and establish the National Single Window (NSW). The NSW is an electronic platform system connecting international trade and transport stakeholders to fulfill all imports, exports, and transit border control procedures. World Bank support of $91.7 million was provided through the Southern Africa Trade and Transport Facilitation Project. The objective was to reduce the cost of cross-border transactions by supporting the modernization, simplification, and harmonization of the trade and transit procedures and policies.

The Dedza One-Stop Border Post, which was completed in 2023, boasts two examination bays for goods, parking spots for 100 freight trucks, and a modern passenger terminal.

“We now take less than half a day to process all the paperwork to clear the goods that we have carried, which is far less than the minimum of three days that we used to spend here,” says Flatella Makwakwa, a truck driver who has been using the Dedza border for more than three years. He also acknowledges the benefits of the new system when it comes to facilitating the passing of trucks and making life more comfortable for the users.

The new office infrastructure has made the process of clearing goods easier for the Malawi Revenue Authority (MRA), various other border officers, and users. The OSBP concept requires border officers from adjacent countries to be hosted in the same building. “It now feels good to go to work as the environment looks spacious and comfortable and we are looking forward to hosting our Mozambique counterparts very soon,” says Lucy Chikhawo, the MRA Station Manager for the Dedza border post which hosts more than a hundred government officers—including those from the Malawi Bureau of Standards, Immigration, Police, Agriculture and Health.

Traders also have access to better sanitation facilities as they wait for their goods to be cleared.

“From the feedback we have received so far about the Dedza OSBP, we feel encouraged to support the government in fast-tracking the completion of the other two border posts at Mwanza and Songwe in Karonga. Our main goal is to support initiatives that reduce time to clear passengers and goods, as any impediments are costly to the economy of the country,” says Chikondi Nsusa, Senior Transport Specialist at the World Bank Malawi Country Office, who is also the Task Team Leader for the project.

Improving Malawi’s Trade, Logistics, and Infrastructure

The latest Malawi Country Economic Memorandum report highlights that Malawi’s economy suffers from a lack of investment and high trade costs. Key reasons include poor logistics and infrastructure, compounded by being a small and landlocked country, as well as other non-tariff barriers at the borders.

According to the document, “the presence of non-tariff barriers at the border and in neighboring transit countries such as Mozambique, Tanzania, and Zambia add to the costs of trade for Malawian exporters and importers and there is lack of coordination between Malawi and its neighbors to address this issue that likely reduces both the number of firms exporting and the total value of exported goods.” In this context, establishing more OSBPs is a big step in the right direction.

Distributed by APO Group on behalf of The World Bank Group.

Eritrea: Eid Al-Fitr Al-Mubarek Celebrated Nationwide

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Eid Al-Fitr Al-Mubarek was celebrated with enthusiasm nationwide today, 10 April. The celebration at Bahti Meskerem Square was graced by the presence of senior Government and PFDJ officials, religious leaders, members of the diplomatic community as well as a number of the faithful.

Salat led by Sheik Salem Ibrahim Al Muktar, General Secretary of the Central Office of Eritrean Eftae ad Islamic Affairs, was conducted.

Speaking at the event, Sheik Ibrahim gave briefing on the meaning of the Ramadan fasting and Eid Al-Fetir and congratulated the Eritrean people in general and the followers of the Islamic faith in particular and the Eritrean Defense Forces.

The celebratory event was broadcast live by Eritrean Television and the National Radio (Dimtsi Hafash).

According to reports, Eid Al-Fetir Al-Mubarek was colorfully celebrated across the country.

Distributed by APO Group on behalf of Ministry of Information, Eritrea.