World Bank Group Approves Innovative Financing Package to Advance Job Creation in Rwanda

WASHINGTON, March 23, 2026 - The World Bank Group today approved a new development policy financing (DPF) operation to support Rwanda's efforts to accelerate structural transformation and create more resilient and inclusive jobs.

The operation, the first in a programmatic series of three, consists of a credit of € 85 million (equivalent to $100 million) combined with a policy-based guarantee (PBG) of $240 million. The PBG is expected to be further supported by a Multilateral Investment Guarantee Agency (MIGA) non-honoring of sovereign financial obligation guarantee, enabling the Government of Rwanda to mobilize up to $450 million in commercial financing on favorable terms.

This innovative financing package will support the implementation of key strategic investments under Rwanda's Second National Strategy for Transformation (NST2), including efforts to advance the country's ambition to become a regional connectivity and logistics hub and to reinforce its position as a leading tourism destination.

"This operation reflects the World Bank Group's commitment to supporting Rwanda's ambition to create more and better jobs," said Sahr Kpundeh, the World Bank Country Manager for Rwanda. "By combining development policy financing with a policy-based guarantee, this operation leverages International Development Association (IDA) resources to help mobilize private capital at a lower cost, while advancing reforms that strengthen fiscal sustainability, expand economic opportunities, and enable the private sector to drive growth and job creation."

The operation is anchored on three pillars: strengthening fiscal sustainability; enhancing foundational infrastructure for job creation; and promoting sectoral reforms to catalyze inclusive job creation. Under the first pillar, the operation supports reforms to strengthen domestic revenue mobilization, improve governance of public-private partnerships (PPPs), and rationalize state-owned enterprises. These measures are designed to strengthen macroeconomic stability, improve the efficiency of public resource allocation, and level the playing field to enable greater private-sector participation.

The second pillar focuses on addressing key binding constraints to job creation by expanding broadband access through telecom infrastructure sharing, strengthening savings through enhancements to the Ejo Heza long-term savings scheme, and improving human capital outcomes through remedial education and job matching systems such as the Integrated Labor Management Information System (iLMIS).

The third pillar supports industrial and agricultural transformation through reforms to improve input markets, promote private sector participation, and modernize production systems. These include initiatives such as digital livestock traceability, strengthened aquaculture regulations, and improved breeding practices.

The approved DPF operation is aligned with Rwanda's National Strategy for Transformation (NST2), which aims at creating productive and decent jobs. The operation reflects a one World Bank Group approach, leveraging the combined strengths of IDA, IFC, and MIGA to maximize development impact and optimize the use of scarce public resources.

By leveraging IDA resources through guarantees, the operation will enable Rwanda to access private financing at near-concessional terms, demonstrating how innovative instruments can help countries scale up private-sector financing in a context of increasing uncertainty around public development assistance.

Contacts

In Kigali: Collin Haba, [email protected]

In Washington: Daniella van Leggelo-Padilla, [email protected]