Rwanda - Rwanda Inclusive and Resilient Job Creation Development Policy Financing

Overview & Synopsis

The Development Policy Financing (DPF) operation is the first in a series of three that aim to address key challenges to Rwanda’s structural transformation to promote resilient and inclusive job creation. The operation includes a credit of JPY 15.386 billion (100 million dollars equivalent), accompanied by a Policy-Based Guarantee (PBG) of 240 million dollars that is expected to be complemented by a MIGA Non-Honoring of Sovereign Financial Obligation second loss guarantee to help the government raise a commercial loan of up to 400 million dollars. The proposed operation supports Rwanda’s ambition to transition toward a private-sector-led growth model at a time of tightening fiscal constraints by enabling the Government to deploy its limited public resources more strategically to crowd in private investment. This transaction will support the Government of Rwanda in mobilizing affordable private financing to implement key strategic projects under NST2. These will build on Rwanda’s achievements in becoming a major tourist destination and further advance the country’s ambition of becoming a regional connectivity and logistics hub. The inclusion of a PBG will allow Rwanda to optimally leverage IDA resources, reduce the cost of non-concessional borrowing, and enhance the country’s ability to attract private capital.