The World Bank has disbursed up to $ 95 million an estimated Rwf77 billion of International Development Assistance credit to support social protection in Rwanda.
Minister of Finance and Economic Planning Claver Gatete said the money is a budgetary support credit intended to strengthen tools that improve management and service delivery of social protection program.
Social protection Management Information System (MIS) and Ubudehe household registry classification system are the beneficiaries of the package.
The funds will also be used to harmonize and improve efficiency of the Vision Umurenge Programme (VUP) that helps with cash-for -work, financial support and services to the poor.
World Bank country manager Yasser El Gammal said the credit is part of the three year budget support program between the government and other partners.
“Rwanda is one of the leading countries in the world in social protection and in seeing a graduation of its citizens. It one of the oldest commitments by the bank to the government of Rwanda,” he said.
World Bank’s total financing in the three years is now estimated at $260 million. The new support is tagged with 0.75 percent interest, will grace in ten years and be repaid in 40 years’ time.
“We still had 16.3 per cent of our people in extreme poverty in 2014. We want to bring that figure to zero by 2020,” Minister Gatete said the investment in local people and the four decades it takes to repay the credit, allows government to pay with no problems and many people are helped get out of poverty.
Last year’s fourth Integrated Household Living Conditions Survey, showed that poverty reduced from 44 per cent to 39 per cent and the trend is continuing as many people are helped get out of poverty.
The money will also increase financial inclusion through Saccos which are financial venues for farmers and others that get out of poverty to access credit facilities for investment and related work.
Child tentative policies will also be included in the implementation.