Challenges for local financier in Rwanda to invest in renewable energy sources and its mitigation

Abstract

Electricity access and use are known worldwide to be the key booster for reliable development. To fail in the integration of the sound energy sector is to fail at all in development. The challenge of the local financier in Rwanda to invest in renewable energy is a great topic that the researcher should develop and help to deliver the outcome that is helpful to the society. The Rwandan energy sector is keeping developing and the government of Rwanda with the partnership of the development institutions as well as development of different programs, Rwanda has made the remarkable development energy sources. Even though the development there is still a gap in the energy sector due to the challenges that arise in the financial sector in investing in renewable energy. Results of the study showed that some of the challenges are small product size, the real risk in investment, lack of skills evaluation, lack of internal reward/ incentives, limited ability to pay back, remote customers those were the challenges and some of the mitigations are: insurance, infrastructure and adequate quality control are some mitigations strategies. Generally, the energy sector in Rwanda has remarkable development but there is still some gap to address. That is why the policymakers should design the policies that favor the financial institution as the attraction methods to support 100% access to electricity as the government of Rwanda targets and encourage the local financiers to support the renewable energy projects.