In a significant move towards bolstering green and sustainable initiatives in Rwanda, 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. This financial support aims to facilitate Rwanda’s mobilisation of funds to drive forward its ambitious agenda of green and social development projects.
The approved project, titled “Partial credit guarantee for mobilisation of sustainable financing for Rwanda,” is poised to empower Rwanda to competitively raise up to €200 million from international commercial banks. This diversification of funding sources is a strategic step towards advancing renewable energy, climate resilience, disaster risk management, biodiversity conservation, and other critical areas outlined in Rwanda’s National Strategy for Transformation (NST-1) for 2017-2024 and Vision 2050.
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The initiative not only aligns with Rwanda’s national development objectives but also positions the country as a credible and sustainable borrower on the international stage. By adhering to global best practices in sustainable finance, Rwanda aims to build a robust track record in the international financial markets, attracting further investment for its green and social initiatives.
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Ahmed Attout, Acting Director for Financial Sector Development at the Bank Group, lauded the operation’s innovative approach in leveraging resources to secure long-term financing for development. “This guarantee will unlock sustainable financing for Rwanda while crowding in new capital providers, contributing to the diversification of its funding sources,” he remarked.
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Mrs. Aissa Touré, the Bank Group’s Country Manager for Rwanda, highlighted the project’s significance in mobilising financing aligned with the objectives of the Bank Group’s Ten-Year Strategy (2024-2033) and Rwanda’s national development agenda. She emphasised the importance of accelerating inclusive green growth and fostering resilient economies in Africa, underscoring the pivotal role of sustainable finance in achieving these goals.
The initiative not only signifies a collaborative effort between Rwanda and the African Development Fund but also underscores the commitment of both parties towards fostering sustainable development and environmental stewardship.
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About the African Development Bank Group
The African Development Bank Group (AfDB) stands as Africa’s premier development finance institution, comprising the African Development Bank (AfDB), the African Development Fund (ADF), and the Nigeria Trust Fund (NTF). With a presence in 34 African countries and an external office in Japan, the AfDB is dedicated to advancing economic development and social progress across its 54 regional member states. For more information, visit www.AfDB.org.
SOURCE: Communications and External Relations, at media@afdb.org.
