The World Bank Group today approved $100 million in financing under the International Development Association’s (IDA) Scale Up Window to help the Government of Rwanda increase access to broadband and selected digital public services, and strengthen the digital innovation ecosystem in Rwanda.
The new Digital Acceleration Project will support the government to expand digital access and adoption by spearheading a series of innovative digital access and inclusion initiatives, including supporting 250,000 households with financing to help acquire smart devices as well as training three million people in basic digital literacy (with targets for girls and women).
The project will also enhance the government’s digital service capabilities by equipping it with the ability to harness the power of big data and develop at least 30 new or upgraded digital services through large-scale investments in shared digital standards, platforms, and infrastructure. These will enable the government to safely scale more fully transactional and remote service delivery, including enrolling and issuing new digital ID credentials to 75 percent of the population. Finally, the project will increase Rwanda’s capacity to support digitally enabled innovation by strengthening the local entrepreneurship ecosystem, developing Rwanda’s digital talent base and helping tech firms to move from startup to growth. At least 300 digital start-ups will be directly supported by the project, with a focus on those that are female-owned.
“Expanding digital access and adoption, enhancing digital public service delivery and promoting digitally enabled innovation are essential for Rwanda’s digital transformation which can in turn help drive a robust post-COVID-19 recovery,” said Rolande Pryce, World Bank Country Manager for Rwanda. “The Rwanda Digital Acceleration Project encompasses all these elements and will contribute to Rwanda’s vision to become a knowledge-based economy and upper middle-income country by 2035, by leveraging digital technologies to accelerate growth and poverty reduction.”
The project will also support Rwanda’s efforts to crowd in private sector investment in digital inclusion initiatives, digital infrastructure and through support for digital innovation and entrepreneurship – with the goal of preparing the country for a data-driven and e-service based economy capable of supporting sustainable recovery in a post-COVID-19 context.
“For Rwanda to leverage digital transformation as a driver of growth, job creation and greater service delivery, digital adoption needs to markedly improve. This project will help Rwanda tackle the affordability of digital devices and services, but also bridge lingering basic digital literacy gaps, to increase local demand for digitally-enabled services and platforms,” said Isabella Hayward, World Bank Digital Development Specialist, and Task Team Leader of the project. “The project will also support the GoR’s aspirations of providing 24-hour, cashless, paperless and fully transactional Government-to-Government, Government-to-Business, and Government-to-Person e-services both at the central government and sectoral levels.”
The project will be co-financed in the amount of $100 million by the Asian Infrastructure Investment Bank (AIIB), of which Rwanda is a non-regional member. This will be the AIIB’s second investment in Rwanda, and the first digital project investment financing to be co-financed with the AIIB.