$50 million ADF grant for Rwandan poverty reduction

THE AFRICAN Development Fund (ADF), the concessional window of the African Development Bank (AfDB) has approved a grant of UA33 million ($50 million) to help finance the second phase of the Poverty Reduction Strategy Support Program (PRSSP II) in Rwanda.

The overall program goal is to promote economic growth for sustainable poverty reduction. But the specific program objectives are to:

(i) To improve public finance management by improving budget programming and execution, and strengthening the fiduciary and transparency framework;

(ii) To help create an enabling environment for business development and export promotion by improving the legal and institutional framework as well as strengthening financial intermediation and consolidating the banking system.

Through PRSSP II, the ADF grant will support the implementation of the Government's PRSP program, in close collaboration with the other partners in the Budget Support Group (World Bank, EU, DFID, Sweden, and Germany). The progress made so far by the government in the implementation of reforms to promote good governance, notably through the improvement of public finance management, enhancement of the population's participation in the design and implementation of development policies, and fiduciary reform efforts such as the overhaul of the procurement system.

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