World Bank to Support Rwanda’s Policy and Institutional Reforms

• Rwanda’s policy and institutional reform program for human capital development and inclusive economic growth will receive $175 million in financing from the International Development Association (IDA).
• The World Bank’s Board of Directors approved the IDA financing last week, consisting of an $87.5 million grant and an $87.5 million credit.
• This financing is the second in a series of three Development Policy Financing operations.

Rwanda’s policy and institutional reform program for human capital development and inclusive economic growth will receive $175 million in financing from the International Development Association (IDA). The World Bank’s Board of Directors approved the IDA financing last week, consisting of an $87.5 million grant and an $87.5 million credit. This financing is the second in a series of three Development Policy Financing operations. The first, amounting to $150 million, was approved in December 2020.

The program is designed to promote strong multisectoral collaboration among several ministries and government institutions to help them collectively deliver key results. It will facilitate human capital development by improving families’ access to health, nutrition, education, and social safety net services. Other features of the program include providing equitable opportunities for poor and vulnerable households to invest in their human capital, empowering women, and developing robust governance and accountability mechanisms at decentralized levels.

Reports indicate the reform program has yielded positive results, reflected in an increase in human capital-focused social safety net interventions, integrated early childhood development services, and more. Health sector financing reforms have led to community-based health insurance for over 85% of the target population, up from 69% in 2020. The program also provided emergency financial support to households to help them overcome income losses during the pandemic.