The government has set up a fund to boost domestic resources.

This follows the recent decision by key donors to suspend aid to the country as international pressure piles on the government to halt its alleged support for the ongoing rebellion in the Democratic Republic of Congo.

The idea to set up the the Agaciro Development Fund was floated last year during the National Dialogue (Umushyikirano) to raise funds to wean the country off foreign aid.

But the plans did not take off until the recent decision by donors.

The government plans to mobilise resources for the fund through voluntary contributions by Rwandans at home and abroad as well as well wishers of the country.

“We are not mobilising this money to replace the delayed aid (budget support); this is an idea that was there before and it will continue. The decision by our development partners has only made us accelerate the process of setting it up,” said Finance Minister John Rwangombwa.

He said the resources mobilised under the fund will complement both domestic taxes and aid.

“The fund resources will help us expedite our development plans. These are collective national efforts to reduce aid dependency,” Mr Rwangombwa said.

So far, the Cabinet has contributed approximately Rwf33 million to the fund.

Resources mobilised under the fund will be used to support implementation of rural programmes such as the ongoing rural electrification programme.

This week, the government will officially unveil the fund to the general public with a view to raising contributions.

Contributions to the fund can be made through commercial banks and online through direct transfers.

The government has further partnered with telecom operators whereby contributions can be made through text messages to the fund. A text message as way of contribution to the fund costs Rwf500.

Constance Mukayuhi, the chairperson of the Parliamentary Committee on National Budget and Patrimony, said the development fund will see the country reduce its dependency on aid.

“If the country is to develop itself, then citizens should develop it more than anybody else. The country belongs to them anyway,” Ms Mukayuhi said.

The government also plans to encourage institutions —both public and private — to contribute to the fund.