Reforming electricity subsidies is a complex challenge in Rwanda, a landlocked country with limited energy resources and a small industrial base. Expensive and historically unreliable electricity services have been detrimental to the growth of businesses and unaffordable for a large section of the population.
ESMAP grants have supported World Bank engagement and analysis, which has helped to set out options for decisive government action. As a result, the government has been able to significantly reduce fiscal transfers to the electricity sector, while doubling new connections per year, halving tariffs for low-income households and making connection charges significantly more affordable.
World Bank. 2019. Energy Subsidy Reform Facility Country Brief : Rwanda (English). Energy Subsidy Reform Facility (ESRF) Country Brief. Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/538521548274317451/Energy-Subsidy-Reform-Facility-Country-Brief-Rwanda