The Government of Rwanda has signed a $23 million (£15m) deal with a Dutch company to develop a grid-level solar plant – believed to be the largest in the central and east African state.

The Power Purchase Agreement (PPA) with GigaWatt Global will include the firm designing, financing, maintaining and operating the 8.5MW solar plant at Agahoza Shalom Youth Village in Rwamagana District.

Emma Francoise Isumbingabo, Minister of State in Charge of Energy and Water said: “Generation and provision of electricity to all Rwandans is a priority for the Government of Rwanda. This initiative to produce 8.5MW of clean energy is an important addition towards closing our current energy gap.”

According to official figures, only 5% of Rwanda’s population has access to electricity but the Government has set a target of providing energy to 35% – 40% by 2020. Reports claim the Government recently announced investment worth RWF3 trillion (£3.06bn) for energy production and accessibility over the next five years.

Earlier this year ELN reported oil and gas would help “boost the East African economy“.