The Government of Rwanda has unveiled plans to inject $1 billion into energy generation projects as part of efforts to expand electricity supply, boost industrial growth, and achieve universal access to power.

Finance Minister Yusuf Murangwa announced the initiative while presenting the country’s economic outlook, noting that reliable and affordable energy remains central to Rwanda’s development agenda.

According to him, the funds will go into new generation plants, upgrading existing facilities, and strengthening the national grid to meet growing demand from households and businesses.

“This investment will enable Rwanda to increase power generation, attract more private capital into the sector, and support economic transformation,” Murangwa said.

The move aligns with Rwanda’s broader energy policy, which targets full electrification by 2035 and a diversified mix of power sources including hydropower, solar, methane gas from Lake Kivu, and other renewables.

Several key projects are already underway, such as the Nyabarongo II hydropower plant, expansion of methane extraction at Lake Kivu, and new solar installations across rural districts.

Despite progress, challenges remain in bridging rural energy gaps and ensuring affordability. The government says part of the new investment will focus on off-grid solutions and modern transmission lines to improve reliability.

Analysts note that attracting private sector financing and maintaining cost-reflective tariffs will be critical to the success of the initiative.

With electricity demand expected to rise sharply in the coming years, Rwanda’s $1 billion commitment signals a strong push to position the country as a regional leader in sustainable energy development.