Private Sector calls for Government support in accessing finances to invest in power projects


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Private Sector calls for Government support in accessing finances to invest in power projects

Yanditswe Nov, 06 2019 15:36 PM

Private players in the Energy sector in Rwanda are appealing for more government support especially in accessing finances for power generation and off-grid electrification.

While Rwanda is on track to increase access to electricity, the World Bank Rwanda Economic Update, Lighting Rwanda Report states that the cost of electricity supply in the country is among the highest in the region, with household consumers finding it difficult to afford electricity.

To remedy this, the government has put in place different strategies including attracting a number of private companies, both local and international, to invest in the electricity sector.

The private players, however, say that the biggest challenge for them is access to finance and therefore appeal for the government’s intervention.

At the opening of a 2-day meeting in Kigali that brought together both local and international stakeholders in the Energy sector, Permanent Secretary in the Ministry of Infrastructure, Uwase Patricia, said that the government has a number of incentives for private companies that venture into this sector.

Emil RADEMEYER, a foreign private investor in the energy sector said that there are many advantages of having the private sector on board.

According to statistics from the Rwanda Energy Group, the cumulative connectivity rate as of October this year is 53% of Rwandan households, including 38% that are connected to the National grid, while 15% are connected to off-grid systems, mainly solar energy and mini-grids.

The current access target stipulates a 100% household access by 2024, while productive users will be connected by the year 2022.

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