Rwanda to Expand Electricity Access, Clean Cooking for Thousands with AIIB Loan

State Minister for Finance and Economic Planning Godefrey Kabera told lawmakers the initiative will be funded through a 14.8 billion Japanese yen (about $90 million) loan from the Asian Infrastructure Investment Bank. The project aims to improve energy access, particularly in rural areas, while promoting environmentally friendly cooking solutions.

Kabera said the program will focus on closing gaps in electricity coverage, which remain despite significant progress over the past decade. Challenges include limited financing, long distances between power lines and users, and reliance on traditional cooking methods.

The project will be implemented in three phases: upgrading and expanding electricity networks, increasing both on-grid and off-grid connections, and distributing clean cooking technologies.

In addition to connecting households, the plan will supply electricity to 850 businesses, 310 schools and health centers, and about 50,000 users through off-grid systems, mainly solar power. It also includes installing street lighting along 200 kilometers (124 miles) of roads in satellite towns around the capital, Kigali.

Lawmakers questioned whether the investment would help Rwanda exceed its target of reaching 90% electricity access this fiscal year. Kabera said the loan aligns with national development goals and will support continued progress.

According to the Rwanda Energy Group, electricity access reached 85.4% in 2025, with 60.1% connected to the national grid and 25.3% using off-grid solutions.

The loan will be repaid over 29 years, with a five-year grace period.