The Influence of Non-Recourse Project Financing on the Success of Macye Macye Project in Rwanda

This study investigates how non-recourse project financing influences the success of the Macye Macye project in Rwanda, a digital inclusion initiative aimed at making smartphones more affordable. It explores four key aspects of project financing: project risk profiling, risk transfer, financing contracting, and capital cost. The findings show that all these factors significantly affect the project's success, with project capital cost having the greatest impact, followed by project financing contracting and project risk profiling. Statistically, all variables had a significant effect on the success of the project, with p- values below 0.05. The regression analysis indicated that increasing project risk profiling, risk transfer, financing contracting, and capital cost all positively influenced the project’s success by 36.6%, 19.8%, 38%, and 51.7%, respectively. Additionally, the study observed that tolerance and variance inflation factor (VIF) tests confirmed minimal multicollinearity among the variables. The study further suggests enhancing risk identification through structured workshops and ongoing risk register updates, expanding risk transfer agreements, improving contract clarity, and establishing regular cost audits. Stakeholder involvement in capital planning and financial transparency were also recommended to optimize project performance. Although the project successfully leveraged non-recourse financing, challenges in fully identifying risks and communicating objectives remain. Continuous monitoring and stronger enforcement of risk management practices are necessary for future success. Ultimately, non-recourse project financing plays a crucial role in determining the success of large-scale initiatives like the Macye Macye project.