The World Bank Board of Executive Directors has approved a Disaster Risk Management Development Policy Financing (DPF) with a Catastrophe Deferred Drawdown Option (Cat DDO) for the Government of Rwanda.
The initiative aims to strengthen national systems to anticipate, prepare for, and respond to disasters, protecting lives, livelihoods, and development gains.
Rwanda is increasingly vulnerable to climate-related disasters, with over 80% of disaster impacts linked to climate change. Since the early 2000s, the country has experienced a sharp rise in the frequency and severity of floods, landslides, and droughts.
The devastating floods and landslides of May 2023 alone caused 131 deaths, 104 injuries, and left more than 18,000 people homeless, with total physical damage and economic losses estimated at $187 million.
The $141 million operation, developed with support from the Global Facility for Disaster Reduction and Recovery (GFDRR), is structured around three pillars:
· Enhancing disaster risk information and institutional coordination;
· Strengthening climate and disaster resilience of the built environment;
· Improving natural resource management for resilience.
These pillars align with Rwanda’s 2023 Disaster Risk Reduction and Management Policy and the National Strategy for Transformation (NST 2).
“Rwanda has made tremendous progress in development over the past two decades, but climate change threatens to reverse these gains,” said Sahr Kpundeh, World Bank Country Manager for Rwanda. “The lessons learned from the May 2023 floods informed this operation, ensuring that our support directly addresses the vulnerabilities that communities face on the ground.”
Approximately 40% of Rwanda’s population resides in high-risk highland areas prone to landslides. With only 6% of arable land irrigated, the economy remains heavily dependent on rainfed agriculture. Climate change is projected to increase rainfall variability and intensity, potentially reducing GDP by 5–7% below baseline in several years by 2050.
“The integrated approach of this Cat DDO is crucial for addressing Rwanda’s complex disaster risk landscape,” said Saurabh Dani, World Bank Senior Development Specialist. “By simultaneously strengthening institutional coordination, improving building standards, and enhancing natural resource management, Rwanda is building resilience across multiple fronts.”
The operation is part of the World Bank Group’s Country Partnership Framework for Rwanda (FY21–FY26), which emphasizes enhancing resilience to climate-related risks, particularly urban flood risks worsened by rapid urban growth. The Cat DDO complements other World Bank-funded initiatives aimed at mainstreaming disaster risk management and climate considerations into national development planning.
