(Posted 26th April 2024)
The Board of Directors of the African Development Fund, the concessional lending arm of the African Development Bank Group (www.AfDB.org), has approved a partial credit guarantee to support Rwanda’s mobilisation of financing to implement green and social initiatives.
The Partial credit guarantee for mobilisation of sustainable financing for Rwanda project will enable the country to raise up to €200 million competitively from international commercial banks, diversifying its funding sources.
It will allocate the proceeds to eligible 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 projects among others.
This is in line with Rwanda’s National Strategy for Transformation (NST-1) for 2017-2024 and Vision 2050, while establishing the country as a credible sustainable borrower by building a track-record in the international financial markets. The financing is also aligned with Rwanda’s Sustainable Finance Framework which sets out how funds can be deployed, processes for selecting and evaluating green and sustainable projects, and project reporting, in line with global best practice.
“This operation demonstrates how countries can leverage their African Development Fund resources innovatively to secure long-term financing for development. This guarantee will unlock sustainable financing for Rwanda while crowding in new capital providers to the country thereby contributing to the diversification of its funding sources,” said Ahmed Attout, Bank Group Acting Director for Financial Sector Development.
“The operation will help mobilize financing for investment in target sectors aligned with the objectives of the Bank Group’s Ten-Year Strategy (2024-2033) on accelerating inclusive green growth and driving prosperous and resilient economies in Africa, as well as with Rwanda’s National Strategy for Transformation and Vision 2050,” added Mrs. Aissa Touré, the Bank Group’s Country Manager for Rwanda.
