HIBAPRESS
The World Bank has approved $100 million in funding to support tax reforms in Rwanda, aimed at strengthening local revenue mobilization and improving the efficiency of public spending.
This support, provided through the World Bank's International Development Association, will finance a program to improve revenue and spending efficiency, which aims to modernize tax administration, strengthen public investment management, and support accountability within various state systems.
Sahar Kbondieh, the World Bank's Country Director for Rwanda, said in a statement that "This program reflects our strong partnership with Rwanda and our shared ambition to expand transformative reforms in governance, with the aim of creating job opportunities, enhancing financial resilience, and improving the quality of services."
He added that supporting national institutions and local structures reinforces the decentralization agenda in Rwanda and helps ensure that the fruits of development reach citizens in their places of living and work.
The program aims to strengthen local revenue mobilization by expanding the use of electronic invoicing devices to ensure compliance with value-added tax and updating property tax registration and assessment systems.
It also seeks to improve the efficiency and transparency of public spending at the national level by strengthening feasibility studies, establishing a systematic asset management, strengthening public procurement systems, and improving the monitoring of public institutions.
Mieron Tadesse Titchani, a senior financial management specialist at the World Bank, said that "This program represents an important step in Rwanda's efforts to expand its local resource base and ensure the optimal use of available resources."
She added that adopting technology, strengthening institutions, and stimulating best practices at the national and local levels will help the government deliver better services, build trust with citizens, and promote job creation led by the private sector.
The direct beneficiaries of the program include national ministries, public companies, and all 30 districts of the country, while citizens and businesses will indirectly benefit from a more stable public financial system, high-quality services, and better-managed public investments.
It is worth mentioning that the International Development Association, established in 1960, aims to support the poorest countries through grants and low- or zero-interest loans to finance projects that promote growth and reduce poverty. Rwanda is among 40 African countries benefiting from the Association's financing.
