Financing Rwanda's infrastructure development

The Development Bank of Rwanda (DBR) in partnership with the Development Bank of South Africa (DBSA) is set to expand its infrastructure investments in the country. The collaboration between the two entities aims to leverage African expertise and resources to enhance developmental projects within Rwanda. In a recent interview with CNBC Africa, Eric Rutabana, CEO of DBR, highlighted the significance of this partnership in driving economic growth and development in the region. Rwanda has seen notable GDP growth and substantial investments in infrastructure over the past two decades, making it an attractive destination for investors. Rutabana emphasized that the business environment in Rwanda is conducive, ranking second in Africa for ease of doing business. With increasing opportunities and ongoing investment activities in the country, the timing of DBSA's involvement is crucial for further advancing infrastructure projects. Discussing DBR's focus on rural infrastructure projects, Rutabana acknowledged the success achieved thus far but emphasized the need for greater impact. He expressed confidence that partnering with DBSA would enable them to expand their reach and maximize the outcomes of their investments, particularly in sectors like energy. The interview also delved into DBR's previous partnership with the now-defunct Housing Bank of Rwanda, aimed at increasing homeownership and bolstering the mortgage market. While the initial merger with the housing bank in 2011 was intended to boost housing development, subsequent shifts led to a refocus on development financing. Rutabana highlighted that BRD's current $150 million fund is channeled through commercial banks to facilitate access to long-term financing for housing. Breaking down the mechanism for supporting housing development, Rutabana explained the dual approach of addressing both demand and supply sides of the housing market. By working with commercial banks and micro-financing institutions on the demand side, and concentrating on generating housing units on the supply side, DBR aims to facilitate affordable and accessible homeownership. The government's role in providing bulk infrastructure to support affordable housing initiatives was also emphasized. Overall, the collaboration between DBR and DBSA signifies a strategic move to drive infrastructure development, enhance economic growth, and address the housing needs of Rwanda's population. With a focus on leveraging resources, expertise, and partnerships, both institutions are poised to make a meaningful impact on the country's developmental landscape.