Rwanda will benefit from $160 million jointly granted by the World Bank and the European Union. The related deals were signed on Wednesday and target a skill development program in various activity sectors.
$11 million will come from the EU, within the framework of a financing of $520 million agreed by the institution in favor of the East African country.
The money will support the development of the private sector and job creation by facilitating the implementation of the “Market Skills4Tourism” and “Tech Innovation/Incubation Hubs” projects.
These two projects aim to improve the skills of Rwandan youth in the tourism and hospitality sector and improve employment opportunities in high-potential sectors through innovation/incubation hubs in four secondary cities in Rwanda (Rusizi, Rubavu, Nyagatare, and Muhanga).
The second financing (about $149 million) from the World Bank, will support Rwanda’s efforts to expand opportunities for the acquisition of quality, market-oriented skills in selected economic sectors.
With a special emphasis on the private sector, the program will help increase access to technical and vocational education and training, as well as to higher education programs that meet both labor market needs and social and economic development.
“Skills development and employment promotion are central to Rwanda’s National Strategy for Transformation. Equipping the workforce with the right skills for economic transformation is central to our long term development objectives, so this support will contribute to upskilling Rwanda’s workforce for long-term economic transformation,”Uzziel Ndagijimana, the minister of finance and economic planning, said in a statement.
It should be noted that half of this second financing is a grant while the other half is a concessional loan payable over 38 years.