RWANDA —The World Bank’s Board of Executive Directors has approved a USD 141 million Disaster Risk Management Development Policy Financing (DPF) operation for the Government of Rwanda, structured with a Catastrophe Deferred Drawdown Option (Cat DDO). The financing mechanism is designed to provide immediate liquidity in the event of a natural disaster while supporting long-term institutional reforms.
Rwanda has experienced escalating climate-related shocks over the past two decades, including floods, landslides, and droughts. Severe flooding and landslides in May 2023 caused 131 deaths, injured 104 people, displaced more than 18,000 residents, and generated estimated losses of USD 187 million, underscoring fiscal and humanitarian vulnerabilities.
The program is built around three reform pillars: Enhancing disaster risk information and institutional coordination; Strengthening climate and disaster resilience of the built environment; Improving natural resources management for resilience. The initiative aligns with Rwanda’s 2023 Disaster Risk Reduction and Management Policy and the National Strategy for Transformation (NST2).
For policymakers and investors, the Cat DDO structure offers a risk-contingent financing buffer that can reduce macroeconomic disruption following climate shocks. The operation also complements the World Bank Group’s Country Partnership Framework for Rwanda (FY21–FY26), reinforcing climate resilience integration across urban planning, infrastructure investment, and public financial management.
