The Board of Directors of the African Development Fund, the concessional lending arm of the African Development Bank Group, has approved a partial credit guarantee to bolster Rwanda’s efforts in mobilizing financing for the implementation of green and social initiatives.
The Partial Credit Guarantee for Mobilization of Sustainable Financing for Rwanda project will facilitate the country in raising €200 million competitively from international commercial banks, thereby diversifying its funding channels.
According to Bank of Kigali CEO, Dr. Diane Karusisi, in this partnership with the Business Development Fund, we are setting a new standard for financial support, ensuring that more Rwandan entrepreneurs have the resources they need to succeed. This agreement is a commitment to boost our appetite for small and medium enterprises.
These funds will be channeled into various eligible projects, including but not limited to renewable energy, climate adaptation and mitigation, disaster risk reduction and management, biodiversity conservation, energy efficiency, forestry, food security, health and wellbeing, affordable housing, and access to social services.
This initiative aligns seamlessly with Rwanda’s National Strategy for Transformation (NST-1) for 2017-2024 and Vision 2050, consolidating the country’s position as a credible sustainable borrower by establishing a track record in international financial markets.
Additionally, this financing adheres to Rwanda’s Sustainable Finance Framework, outlining the deployment of funds, procedures for selecting and evaluating green and sustainable projects, and project reporting, all following global best practices.
Ahmed Attout, Bank Group Acting Director for Financial Sector Development, remarked, “This operation showcases how countries can ingeniously leverage their African Development Fund resources to secure long-term development financing. The guarantee provided will unlock sustainable financing for Rwanda, attracting new capital providers to the country and thus contributing to the diversification of its funding sources.”
Furthermore, Mrs. Aissa Touré, the Bank Group’s Country Manager for Rwanda, emphasized, “This operation will facilitate the mobilization of financing for investment in target sectors that are in line with the objectives of the Bank Group’s Ten-Year Strategy (2024-2033) on accelerating inclusive green growth and fostering prosperous and resilient economies in Africa, as well as with Rwanda’s National Strategy for Transformation and Vision 2050.”
