Rwanda Cabinet approves reforms on transport, currency, climate

Rwanda Cabinet approves reforms on transport, currency, climate

The Ministry of Infrastructure will roll out a modernised public transport model in the capital, Kigali, this December to improve reliability, efficiency, and environmental sustainability, with the potential for expansion to other urban centres, according to the communique.

Rwanda's Cabinet has approved a broad package of reforms spanning public transport, monetary policy, and climate action, according to a communique issued Friday by the Office of the Prime Minister.

The Ministry of Infrastructure will roll out a modernised public transport model in the capital, Kigali, this December to improve reliability, efficiency, and environmental sustainability, with the potential for expansion to other urban centres, according to the communique.

The model will enforce scheduled bus operations, introduce real-time tracking to ensure fair route coverage, and advance Rwanda's broader green and smart-city ambitions under the Second National Strategy for Transformation (NST2) and Vision 2050.

In a separate decision, the National Bank of Rwanda will withdraw several old banknote series that have circulated for more than a decade and are increasingly vulnerable to counterfeiting. The demonetisation, intended to safeguard the national currency's security and integrity, will include a 12-month transition period before the notes cease to be legal tender.

The cabinet also endorsed the Ministry of Environment's release of Rwanda's Nationally Determined Contribution 3.0, an updated Climate Action Plan outlining strategies to build resilience, cut emissions, and manage climate risks through 2035.

The plan targets stronger safeguards for communities, infrastructure, and ecosystems against floods, droughts, and landslides, and a 53 per cent reduction in greenhouse gas emissions through interventions across the energy, transport, agriculture, industry, and waste sectors.

To support implementation, a new Rwanda Country Platform for Climate and Development will coordinate national initiatives, investments, and international partnerships.

Additionally, the cabinet approved a draft law ratifying a loan agreement between the Rwandan government and the Export-Import Bank of China for the Giseke Irrigation Project. The two countries signed the 47-million-U.S.-dollar concessional financing agreement in January for the construction of the Giseke Dam and related irrigation infrastructure in Gisagara district in the Southern Province.

The project is expected to bolster agricultural resilience to climate change by irrigating 2,640 hectares of land, in line with NST2 priorities on water-saving technologies and improved irrigation productivity.

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