As a response to global efforts to deliver external aid more efficiently and effectively in support of poverty reduction and the attainment of the Millennium Development Goals, the Government of Rwanda, Development Partners and the Office of the UN Resident Coordinator embarked in 2004 on a joint support strategy to strengthen aid coordination and harmonization in the country.
The Government established its External Finance Unit (EFU) within the Ministry of Finance and Economic Planning (MINECOFIN), which is responsible for aid management and coordination in 2005. An Aid Coordination Unit (ACU) was set up under the guidance of the UN Resident Coordinator to provide technical support and policy advice on aid coordination, harmonization and alignment at the national level. Since 2008, these advisory functions are provided as part of a NEX project managed by the Public Management Unit.
The project's development objective is to improve the effect and impact of development assistance in Rwanda in support of the national priorities of poverty reduction and the international commitment to meeting the Millennium Development Goals.
Through the delivery of key outcomes, outputs, and activities, this project has had positive results in improved aid efficiency in support of poverty reduction through:
1) Improved government capacities in the area of aid delivery and management;
2) A reduction of transaction costs for government–donor interaction resulting from:
a) efficiency savings from a reduction in duplicative activities;
b) increased delivery rates and;
c) rationalization of certain donor processes, where possible through aligning them behind government systems and use of Program based approaches (PBAs);
3) Increased awareness amongst government and donors of potential efficiency gains and costs savings resulting from the implementation of a harmonization agenda.
4) improved government capacities in leading the aid effectiveness agenda (Paris Declaration and Accra Agenda monitoring)
The project continues to support the running of the GoR – Development Partners web site, which aims to disseminate documentation and information related to coordination activities and development aid in general. The site can be accessed at www.devpartners.gov.rw