Project Summary

Project General Description

The proposed Covid-19 Crisis Response Budget Support Program (CPRBS) is an initiative involving an African Development Fund loan of UA 71 million to the Republic of Rwanda from the country’s ADF-15 Performance Based Allocation. This Crisis response budget support operation is provided in accordance with the Bank Group’s COVID-19 Response Facility (CRF) and is in response to a request for support received from the Rwandan Government dated April 10, 2020. Indeed, as at 10th June 2020, Rwanda had recorded a total of 476 cases of COVID-19 with 2 fatalities and 307 recoveries. GoR’s immediate response to the pandemic has been swift and decisive, with the announcement of a number of directives ranging from social distancing, suspension of domestic and international travel, teleworking, closure of all learning institutions and the total lockdown of the country on 21 March 2020. On the 4th of May 2020, the Government announced a partial opening of the country, with a curfew between 9pm and 5am. Subsequent measures towards the reopening of the country have focused on mass screening and testing, mandatory wearing of masks in public, continued social distancing and hand hygiene and the use of electronic payments and online services, among other measures. The containment measures have limited the spread of the virus but has also resulted in reduced productivity of the economy and reduced fiscal space to provide relief and promote economic recovery. The purpose of the operation is to support the Government of Rwanda’s (GoR) Coronavirus 2019 National Preparedness and Response Plan (NPRP) and Economic Recovery Plan (ERP) May 2020 to December 2021, which outlines measures to contain COVID-19; mitigate the economic and social impacts of the pandemic on local businesses and vulnerable households; and contribute to the mitigation of macroeconomic risks. The operation consists of three broad mutually reinforcing components namely: (i) Strengthen the health system to contain COVID-19 spread; (ii) Safeguard economic resilience against COVID-19 shocks and (iii) Mitigate the impact of COVID-19 on the vulnerable, through expanding social protection coverage. Containment of the spread of COVID19 will enable businesses reopen and move forward on economic recovery trajectory. While expanding social protection will enable protection of assets and prevent vulnerable persons sliding into poverty.

Project Objectives

The goal of the program is to support the GoR’s efforts to respond to COVID-19 and mitigate its economic and social impacts on local businesses and households, particularly the poor. Consistent with the GoR’s plan to address the crisis, the operational policy objectives of the program will support the implementation of the Coronavirus Disease, 2019 National Preparedness and Response Plan (NPRP) and the Economic Recovery Plan (ERP). The expected outcomes of the program are: (i) enhanced capacity of public health system to contain COVID-19; (ii) vulnerable households’ livelihood protected and (iii) risk to macroeconomic stability minimized and private sector’s resilience enhanced.

Beneficiaries

The proposed operation will benefit Rwandan citizens who will benefit from improved basic health service delivery and social protection interventions. The direct beneficiaries are vulnerable workers in the informal sectors including women, public works programme beneficiaries (over 56% women), private and financial sector actors; and farmers. Moreover, the program will also benefit MSMEs including those that are female owned. As a Category II program on the Gender Marker System, the program will safeguard the livelihoods of vulnerable men and women through gender inclusive social protection programs and COVID-19 relief schemes.

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