“Generating electricity from burning oil is expensive and inadequate. It represents more than 40% of all spending for energy production. It is the reason the country needs to turn to alternative sources,” said the PM.
The Prime Minister made the remarks while launching a two-day Rwanda Energy in Kigali, which took place February 29-March 01, 2012. The Forum was organised by the Government of Rwanda through the Rwanda Development Board (RDB), Energy, Water and Sanitation Authority (EWASA) and the World Bank. The Forum attracted over 250 participants and over 90 global energy companies.
The Premier told the Forum that the private sector is always willing to engage as long as there are clear terms, a policy environment and a climate favourable to investment. He promised government support – pointing to the already set up transmission lines, and that the state will facilitate access to energy projects. The PM also urged any potential investors to tour existing infrastructure.
“Rwanda has made it a priority to become a knowledge-based society. Rwanda wants to be a window into East Africa with a total population of 140 million. It would like to create sufficient energy infrastructure.”
He added: “Rwanda made significant improvements to enhance the partnership with investors. Rwanda has also embarked on regional integration and providing modern services to render the energy sector powerful and modern.”
For his part, the Minister of Infrastructure, Albert Nsengiyumva, said Rwanda needs energy, health and education for local communities. “This forum will promote exchanges of experience to develop and achieve ambitious goals aimed at achieving growth through energy,” he said.
The Minister noted that the Kivuwatt Project has invested significant efforts in conducting studies for efficient production energy from methane gas. “The Government fostering dialogue and partnerships,” he said.
The World Bank Country Director, John Zutt, said no country in the world has reached the middle income without sufficient availability of energy. He noted that in each sub-Saharan country, there is a huge energy deficit. Zutt said that the largest World Bank loan so far is that granted to South Africa to strengthen its energy sector, totalling U.S. $ 3.5 billion.
For the World Bank, energy creates opportunities for growth. With energy, it has been possible to 100% of households in many countries to create their own businesses and jobs, and even eases children’s study in the evening. Living standards have improved as the majority are able to escape poverty.
The World Bank has provided funding to support development projects under the supervision of the Rwanda Development Board (RDB). The Bank is also engaged with the private sector in energy development, through its private sector support arm, the International Finance Corporation (IFC).
“We are working with the Government to create a more conducive investment environment,” said Zutt at the conference. “The key is that the institutions work in a reliable, attractive – with energy accessible and at a low cost. That is what interests investors.”
The World Bank locates the obstacles and seeks to provide energy irrespective of the challenges. For 2010, only 20 energy-related contracts were signed in Sub-Saharan Africa. As of this year, 12 contracts were also concluded, which the Bank says, demonstrates good progress. Through IFC and MIGA support, Kenya’s geothermal energy projects which will provide 250MW have been approved.
Kenya also has different other projects supported by partners such as JICA, GTZ, SIDA, the European Investment Bank for production of another 350 MGW. It should be noted that many other initiatives are underway, including the production of up to 1000 MW of energy.
“Rwanda can engage in the same way as Kenya,” said Zutt, adding: “This Forum will provide the necessary benchmarks which will create a favourable environment for investment in Rwanda.”
Earlier on, RDB Chief Operating Officer, Ms Clare Akamanzi, told participants that the Forum was an opportunity to showcase investment opportunities in Rwanda.
“The International Monetary Fund (IMF) data shows that Rwanda is experiencing 8.5% growth annually,” she said. However, energy remains a major constraint. Despite the situation, Rwanda remains one of the top growth countries, and a top reformer as well. The World Bank Doing Business assessments show that Rwanda remains unrivalled as a conducive place for business. The COO pointed out that Rwanda has created a One Stop Centre in the same building to issue licenses to those who want to start business.
“In 24 hours, this authorization is obtained after payment of only U.S. $ 25. And each year, the Government introduces new reforms to ease business,” she said.