The World Bank Board of Executive Directors has approved a $141 million Disaster Risk Management Development Policy Financing (DPF) with a Catastrophe Deferred Drawdown Option (Cat DDO) for Rwanda. The funding aims to help the country improve its ability to anticipate, prepare for, and respond to natural disasters.
Rwanda is increasingly vulnerable to climate-related events, with over 80% of disaster impacts attributed to climate change. The frequency and severity of floods, landslides, and droughts have risen since the early 2000s. In May 2023, severe floods and landslides caused 131 deaths, injured 104 people, left more than 18,000 homeless, and resulted in estimated losses of $187 million.
The new operation is based on three main areas: enhancing disaster risk information and institutional coordination; strengthening resilience in the built environment; and improving management of natural resources for resilience. These focus areas are aligned with Rwanda’s 2023 Disaster Risk Reduction and Management Policy as well as the National Strategy for Transformation.
"Rwanda has made tremendous progress in development over the past two decades, but climate change threatens to reverse these gains," said Sahr Kpundeh, the World Bank Country Manager for Rwanda. "The lessons learned from the May 2023 floods informed this operation, ensuring that our support directly addresses the vulnerabilities that communities face on the ground.”
Around 40% of Rwanda’s population lives in high-risk highland regions susceptible to landslides. Only about 6% of arable land is irrigated, leaving much of the economy dependent on rainfed agriculture. Projections indicate that increased rainfall variability due to climate change could reduce GDP by up to 5-7% below baseline levels in some years by 2050.
By incorporating disaster risk management into national planning processes, Rwandan authorities aim to protect recent development gains and strengthen resilience among citizens.
"The integrated approach of this Cat DDO is crucial for addressing Rwanda's complex disaster risk landscape," said Saurabh Dani, World Bank Senior Development Specialist. "By simultaneously strengthening institutional coordination, improving building standards, and enhancing natural resource management, Rwanda is building resilience across multiple fronts."
This initiative supports priorities outlined in the World Bank Group’s Country Partnership Framework for Rwanda (FY21–FY26), which highlights resilience against climate-related risks—especially urban flooding—as a key area given rapid urbanization trends. The Cat DDO also complements other ongoing World Bank projects focused on integrating disaster risk management into broader development planning.