AfDB Country Manager Discusses Government Cooperation and Private Sector Development in Rwanda

IGIHE

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00:00 [MUSIC PLAYING]

00:03 African Development Bank on the continent,

00:20 it's a multilateral development bank,

00:24 the first on the continent, that was founded in 1963

00:30 and became effective one year later.

00:34 The composition of the bank is made of 54 African countries.

00:44 You can say all African countries are

00:46 part of African Development Bank,

00:49 plus what we call non-regional countries.

00:52 You have 28 non-regional countries,

00:56 the Western countries, Canada, America, Japan,

01:01 and some Asian countries, like Japan and Korea, for instance.

01:06 And we are really being set as a mandate of the agenda

01:12 2063 by the EU, is really to support the social development

01:20 transformation of the continent.

01:25 For that mandate, we have several instruments.

01:32 The biggest instruments are financial, obviously,

01:34 because we are an NDB.

01:37 And we have key three windows, funding windows.

01:42 Having said that, we have many, many trust funds,

01:46 that means countries give us funding

01:51 to use on their behalf in specific sectors,

01:54 for specific countries, or specific targets.

01:59 So we have many of these ones.

02:00 I can think of the Canadian trust fund, Korean trust fund,

02:05 Japanese trust fund.

02:06 So basically, this is the bank.

02:09 So this is where we are.

02:10 We are a AAA bank.

02:13 That means any $1 that we have as a capital,

02:17 we can raise four times that amount.

02:20 And we provide funding at very concessional terms

02:25 for countries like Rwanda or elsewhere.

02:27 So this is African Development Bank.

02:29 The bank has been operating in Rwanda since 1974.

02:34 And since then, we have provided $2.9 billion

02:40 worth investment in this country, in many sectors.

02:45 As we speak, we have a portfolio of 26 projects

02:52 worth $1.5 billion.

02:56 And these projects are mainly in infrastructure.

03:00 When I say infrastructure, it is water and sanitation,

03:05 it's transport, and it's energy.

03:08 And this accounts for 87% of our entire portfolio.

03:13 So the 26 projects, 87% are in infrastructures.

03:19 Now the remaining projects are in skills development,

03:24 human capital in general, and interventions

03:27 to support private sectors to strive

03:30 and to be able to contribute to the transformation

03:34 of socioeconomic transformation in Rwanda.

03:37 I'm sure that you know the Kivu Belt.

03:40 With the road from the north to the east is the bank.

03:43 I'm sure that you know Carnegie Mellon Africa, the university.

03:48 It's African Development Bank.

03:50 The Institute of Architecture, I think

03:53 it has a new name, technology.

03:55 It's African Development Bank.

03:57 The impacts are massive.

03:59 In some areas, in many areas in Rwanda,

04:01 we're providing the three at the same time.

04:04 So imagine the impact for education, access to schools,

04:10 access to hospitals, the trade in those areas,

04:16 and then also facilitating the business.

04:19 Because when you have electricity,

04:22 you can go for agro-processing.

04:24 You can have businesses that use electricity,

04:26 and many businesses need electricity.

04:29 So really, our impact have been massive.

04:33 We are a trusted partner.

04:35 We are the second donor right after the World Bank.

04:40 And in infrastructure, we are really

04:43 the partner of the government.

04:45 Only in water this year, 2023, we'll have--

04:50 we'll invest 350 million in water.

04:56 100 million will go for what we call policy-based operations

05:01 that will help the reform of the water sector

05:05 that the government is looking for.

05:08 And the remaining 250 million USD

05:11 will go for investment projects for access

05:14 to water in the southern part of the country.

05:20 And we don't also only provide infrastructure,

05:24 because those infrastructure come also

05:26 with some social economic investment.

05:31 We invest in schools along those roads,

05:34 or along the transmission lines that you're providing.

05:37 We provide market storage, milk collection centers.

05:43 But these are not standalone projects.

05:46 There are additionality to our investment project,

05:50 so that the development impact is broader than having a road,

05:54 having energy, or having only water.

05:57 So our investments are enablers for bigger

06:02 social economic transformation in the areas

06:04 that are there happening.

06:06 Private sector, we have been timid so far.

06:10 But we are coming high on it.

06:13 There are three key investments in private sector

06:17 that are ongoing.

06:19 The Kigali bulk water is that you know here.

06:23 Water infrastructure where we provided financing

06:27 to Metito, a private sector international that

06:31 is specialized in water.

06:33 We provide them with 20 million USD

06:36 to be able to invest in the Kigali bulk water.

06:39 There is a project on the Kivu, on Lake Kivu,

06:43 for extraction of methane.

06:45 It's also us.

06:47 And then now we are coming for a new project in transport

06:52 that will be a blend, public investment to get

06:57 the infrastructure done.

06:58 Once this is done next year, we'll

07:00 come with private sector investment

07:03 because the government has requested the bank to support

07:08 on electric buses.

07:10 So this is something that we are very, very excited to do

07:13 because this is a new avenue for development in Rwanda.

07:19 So we are happy to be part of it.

07:22 And lastly, we are also as part of the Bugesera airports,

07:28 we're going to provide support to the government

07:31 to set up a center of excellence for aviation.

07:35 This is a project of around 25 million dollars

07:40 to set up an academy where all the skills that

07:46 are needed in aviation value chains,

07:48 from pilot to the ground, people that

07:54 work in the airports, et cetera, will be trained.

07:58 So this is really something also that is very exciting

08:01 that we are looking.

08:02 So it's a lot.

08:03 We're doing really a lot.

08:04 Only this year, we are providing 523 million in investment

08:11 from different funding windows that I mentioned to you earlier.

08:16 So yes, a lot is going on.

08:20 (upbeat music)

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