Rwanda - Poverty Reduction Strategy Support Programme - Phase II (PRSSP-II)

The Poverty Reduction Strategy Support Program, Phase II (PRSSP-II) is an extension of the first budget support program of the African Development Bank in Rwanda, the PRSSP-I. All the reforms of the PRSSP-I helped strengthen the consolidation of public expenditures and their allocation to priority poverty reduction programs. The second phase of the programme (PASRP-II) is expected to support the government’s efforts to deepen good governance reforms initiated under PRSSP-I, notably those intended to: (i) improve the business climate and lay a solid foundation for private sector development and the diversification of the productive base; (ii) improve budget programming and execution through enhanced consistency among the MTEF, Economic Development and Poverty Reduction Strategy (EDPRS) objectives and budget allocations; and (iii) consolidate the fiduciary framework through PFM reforms, especially those oriented to the management of government procurement. Indeed, despite the relatively sound macro-economic performance, growth falls short of the poverty reduction objectives and the economy remains vulnerable to external shocks. In addition, it should accelerate reforms aimed at consolidating public finances and the fiduciary system, as a key instrument for effectively channeling resources towards Poverty Reduction Strategy Paper (PRSP) and EDPRS priorities. The present program comprises the following two components: (i) improving public finance management and (ii) contributing to the creation of an enabling environment for business development and export promotion.