The World Bank has signed Rwanda US$80m (approximately Frw67B) to support targeted vulnerable groups through Vision 2020 Umurenge Program (VUP) in a bid to improve the effectiveness of Rwanda’s Social Protection System.
Finance Minister Claver Gatete signed with the World Bank Country Manager for Rwanda, Yasser El-Gammar on Thursday morning, the financing agreement.
The Strengthening Social Protection Project (SSPP) will help expand the coverage and improve the effectiveness of VUP hence increasing the number of households receiving income support.
It will also extend eligibility criteria for direct support to more labor-constrained households including vulnerable households with people caring for disabled members.
It is expected that at the conclusion of this project, the direct support to approximately 95,846 households in Ubudehe 1 category, will continue and expand to about 11,000 Ubudehe single-worker households caring for a person with disability.
It is also expected that classic Public Works support will continue to increase from the current 128,000 households in (240 sectors) to around 141,361 (in 270 sectors) with major extension of gender and child sensitive model expected to reach 75,000 households (in 300 sectors) by the end of the operation up from 2,757 households in 300 sectors in the Fiscal year 2016/17.
Minister Gatete said that “Social Protection remains one of the main priorities of the government of Rwanda for meeting its ambitious poverty reduction and human capital development goals”.
“SSPP is part of the wider Government of Rwanda and World Bank program to combat chronic malnutrition and invest in the early years, along with the other World Bank supported projects namely the Stinting Prevention and Reduction and Agriculture Projects”, said Yasser El-Gammar.
Meanwhile, on May 25, 2017, the World Bank granted $81 million credit to support Rwanda’s transport sector. The project that was the first in a series of three, in Rwanda, Tanzania and Uganda is part of the Lake Victoria Transport Project (LVTP).
It is expected to help improve the efficient and safe movement of goods and people along the regional corridor from the border crossing at Rusumo to the border crossing at Nemba and Rusizi together with upgrades to road asset management and road safety in Rwanda.
The project is expected to create of at least 500 permanent jobs for Local Community Associations through multi-year contracts for periodic maintenance of the road link.
The World Bank’s Board of Executive Directors, on March 29, 2016, has approved a US$95 million International Development Association (IDA) credit to support Rwanda’s urbanization strategy in six secondary cities namely Muhanga, Rubavu, Rusizi, Nyagatare, Huye, and Musanze and support local economic development in these cities, with over 500,000 people in the cities, expected to directly benefit from the project.
The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives.
Since 1960, IDA has supported development work in 112 countries having brought positive change to 1.3 billion people who live in countries beneficiary of IDA.
According to the World Bank statistics as of 2016, annual commitments were about $19 billion over the last three years with about 50 percent going to Africa.