Basket Funding for Pro-Poor Development (PPD-Basket)

Context

Rwanda's rural areas lag significantly behind urban areas in public investment, economic development, and access to essential services. The Basket Funding for Pro-Poor Development (PPD-Basket) aims to address these persistent inequalities by financing investments in local projects that promote inclusive growth and improve the well-being of communities. It targets 16 disadvantaged districts with high poverty rates, aiming to improve access to essential services and stimulate inclusive local economic development. By financing infrastructure, particularly in agriculture and public services such as health, education and sanitation, the PPD-Basket helps reduce poverty, strengthen local governance and enhance climate resilience. It supports district-led planning under the Local Administrative Entities Development Agency (LODA), ensuring alignment with community priorities. Through technical assistance, regulatory reforms and inclusive decision-making, the fund empowers local authorities and communities to drive sustainable development and improve livelihoods.

Objectives

The PPD-Basket aims to reduce poverty and inequality by supporting inclusive local economic development. It strengthens infrastructure, promotes sustainable agriculture and improves access to essential services. The fund operates through three pillars:

• improving regulatory and operational frameworks by strengthening policies, IT tools and procedures that enable districts to plan and manage local economic development projects effectively;
• financing and implementing infrastructure projects in sectors such as agriculture, health, education, water and sanitation, selected based on district priorities and aligned with national strategies;
• providing technical support and capacity building to district authorities and LODA, ensuring sound project execution, monitoring and inclusive governance.

Beneficiaries

The PPD-Basket fund targets district and local authorities as implementing partners of local economic development projects. The final beneficiaries are the vulnerable communities they serve, alongside local micro, small and medium-sized enterprises and entrepreneurs. Special focus is placed on empowering women and youth, promoting their leadership and participation in inclusive, community-driven development initiatives.

Target geographical area

The PPD-Basket targets 16 disadvantaged districts selected for their high poverty rates, population size and limited access to public investment. It focuses on bridging urban–rural disparities by financing inclusive infrastructure projects that reflect local priorities. This place-based approach ensures equitable resource distribution and supports sustainable development where it is most needed. The 16 targeted districts are Gisagara, Nyanza, Ngoma, Nyaruguru, Gatsibo, Nyamagabe, Ruhango, Kamonyi, Rulindo, Gakenke, Burera, Gicumbi, Rutsiro, Nyabihu, Ngororero and Nyamasheke.

Stakeholders 

The project is implemented in close collaboration with LODA and the administrations of the 16 targeted districts. These partners lead the selection and execution of local economic development projects, ensuring alignment with district priorities and fostering inclusive, community-driven development.

The PPD-Basket is a joint fund financed by the Agence française de développement (AFD), the Kreditanstalt für Wiederaufbau (KfW) and the Grand Duchy of Luxembourg.