RWA/029
Basket Funding for Pro-Poor Development (PPD-Basket)

The Basket Funding for Pro-Poor Development (PPD-Basket) is a joint fund financed by Agence Française de Développement (AFD), Kreditanstalt für Wiederaufbau (KfW) and the Grand Duchy of Luxembourg. It aims to support the Rwandan government's efforts to promote local economic development (LED) and reduce poverty in the country's 16 most disadvantaged districts. In particular, the aim is to reduce the inequality between urban and rural areas, and to offer tangible improvements to the well-being of the most vulnerable communities.

The PPD-Basket focuses on financing local investment projects proposed by the districts, which stimulate inclusive growth, particularly in the agricultural sectors, or improve access to public services such as health, education, water and sanitation. The approach also includes support for environmental and social impact assessment studies, as well as strengthening stakeholders in cross-cutting themes, particularly gender and climate resilience.

An initial selection of 48 LED projects was proposed by the Local Administrative Entities Development Agency (LODA) and validated by the steering committee in December 2023, for an estimated amount of 8 500 000 EUR, including almost the entire Luxembourg contribution.

As part of an interim phase pending the recruitment of technical assistance by KfW scheduled for mid-2024, this selection was made on the basis of restricted eligibility conditions (reduced budget, no expropriation, predefined sectors) in order to minimise risks.

The projects selected are from priority investment plans drawn up by each district. The selection is based :

• on the distribution of the financial envelope between the 16 targeted districts, according to a key that takes into account the total population, the population below the poverty level and, to a lesser extent, the surface area of the district;
• on the order of priority set by each district.

The PPD-Basket is organised around three complementary pillars:

• improving the regulatory and operational framework for LED projects;
• funding and support for the implementation of inclusive LED projects in poor rural districts;
• technical support and capacity development for districts to implement LED projects, and for LODA to manage the PPD-Basket and support districts.