Announcing the Launch of Results-Based Financing for Refugees in Rwanda

Empowering Vulnerable Groups with Easier Access to Subsidized Stoves

We are excited to announce that the application for results-based financing in Rwanda is now operational, streamlining the eligibility check and sales process for subsidized stoves for refugees. This digital tool aims to make improved cookstoves more accessible to the most vulnerable households in refugee camps, enhancing their quality of life and safety.

The project is a close collaboration between the two GIZ Clusters Climate, Energy and Sustainable Urban Development (CEU) and Energizing Development and Digital Transformation & Digital Economy. The Climate Cluster operates together with the partner organization Practical Action for the digital solution’s development.

Addressing the Challenges: Former Situation

Previously, many refugees could not afford even the subsidized improved cookstoves available in the camps. These households had to rely on inefficient, dangerous, and unhealthy open fires or charcoal stoves, often using illegally collected firewood. To address this, Energizing Development (EnDev) developed an intersectionality approach using the UNHCR socio-demographic database of refugee households. This approach identifies the most vulnerable households, who should receive additional subsidies to access a stove through a market-based approach. Implementing an IT solution for this purpose was necessary to support the subsidized purchase of stoves for eligible households and roll it out to sellers in the camps.

Implementing Innovative Solutions

Based on the GovStack Workflow Building Block and Registry Building Block, a web-based tool using a low-code platform has been developed. This tool allows for the easy eligibility check of households for additional subsidies and manages the sales process, including necessary reporting for fund management by the local partner organization. A local supplier has been trained and is now responsible for maintaining the system.

Benefits for the Community

With this new system, stove sellers can easily confirm whether a refugee is eligible for a further subsidized stove based on specific criteria. Eligible households receive SMS tokens from the implementing partner, which the stove seller can verify through the tool to ensure the token’s validity and check if the household has previously received a stove. Each household is only entitled to one subsidized stove. This improved coordination of subsidy provision enables more refugees to receive stoves, facilitating the preparation of their meals.

Transformative Power of Digital Solutions

The introduction of results-based financing and the new web-based tool has significantly improved the lives of refugees in Rwanda. By leveraging technology and a market-based approach, we can ensure that more refugees have access to improved cookstoves, enhancing their safety, health, and overall quality of life. We look forward to seeing the positive impact this initiative will continue to have in refugee camps across Rwanda. Here are some of the key benefits:

• Increased Accessibility: The tool simplifies the eligibility check for additional subsidies, ensuring that the most vulnerable households can access improved cookstoves.
• Enhanced Efficiency: Stove sellers can quickly verify eligibility and manage the sales process seamlessly, ensuring a smooth and efficient transaction.
• Improved Safety and Health: Access to subsidized improved cookstoves reduces reliance on hazardous open fires and expensive charcoal, leading to safer and healthier cooking conditions.
• Data Protection: The system respects data protection principles while effectively identifying eligible households, maintaining the privacy and dignity of refugees.
• Agility and Adaptability: The low-code platform allows for rapid development and adaptation to meet the evolving needs of the refugee community.
• Wider Reach: Better coordination of subsidy provision means that more refugees benefit from the initiative, significantly improving their quality of life.