| Project Detail |
AFD supports the Rwanda Development Bank (BRD) through a line of credit for the financing of green and climate projects for the financial sector and businesses within the framework of the IREME Invest initiative.
CONTEXT
Densely populated Rwanda , with low GDP and GDP per capita, has a low-carbon energy mix. However, the country is particularly vulnerable to the effects of climate change.
Rwanda is proactive on climate: the first developing country to submit a revised Nationally Determined Contribution (NDC) in 2020, it aims to be carbon neutral by 2050. The cost of the NDC is estimated at USD 11 billion by 2030 (equivalent to the countrys GDP in 2021). The States budgetary room for maneuver is limited given the scale of the financing needs.
In this perspective, the catalytic role of the national financial system appears crucial. The Rwanda Development Bank (RDB) positions itself as the reference actor to support Rwandas development policy. It thus has an important role to play in the densification and reorientation of financial flows in favor of green and climate investments.
DESCRIPTION
The aim of the project is to support Rwanda in its ambition to increase the volume of green finance dedicated to low-carbon and climate-resilient projects, in order to achieve the ambitious objectives that the country has set for itself in terms of climate and development.
It consists of technical and financial support to the BRD for the implementation of an ambitious initiative, “IREME Invest”, launched by the President of the Republic of Rwanda at COP27 and aimed at promoting the financing of green and climate change resilient projects.
The Rwandan Green Fund (FONERWA) and the BRD have joined forces to offer, autonomously but in a concerted manner, a range of financial tools to overcome existing obstacles in the development of climate project pipelines.
FONERWA will thus manage a Project Preparation Facility (PPF). The BRD, for its part, will manage a Credit Facility (CF) that the AFD proposes to support within the framework of this project. |
