Changes since project design
The project was conceived in 1999/2000 and
while some modifications were introduced in the design when
the twin project was agreed to, they were minimal and the
underlying principles, the investment components and the way
of implementing them remained essentially the same. However,
there have been considerable changes in the economic, social
and institutional landscape in Rwanda over this period.
· There has been a marked shift away from the emergency
relief-oriented operations and associated support from the
donor community, characterized by grant assistance and easy
access to funds, to development assistance that is prioritizing
sustainability and accountability.
· There was little policy guidance for tackling poverty
during project design and as the appraisal report for the
first project noted, ‘GOR has not yet elaborated a specific
policy aimed at poverty eradication per se.’ With the
preparation and the Poverty Reduction Strategy Paper (PRSP)
in late 2000, and its subsequent adoption, the project now
has an approved policy framework within which to address the
question of rural poverty and support for vulnerable groups
in the Province.
· The Central Bank has introduced a new banking regulation
that requires all micro-finance institutions, taking savings
and disbursing loans, to comply with strict prudential rules
and register with the Central Bank. This throws into question
the design of the rural finance component that was based primarily
on creation of informal community-level savings and loan associations,
which now would come within the new banking regulation and
would need to meet the strict registration requirements.
· Probably the most important change affecting project design
is government’s commitment to decentralization. While government’s
commitment to decentralization has been in effect for some
time, the challenge is now to ensure district authorities
take fully their responsibilities and roles, and actively
participate in planning, programming and budgeting and take
up project execution to ensure ownership.
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