AfDB Backs Rwanda’s Green Initiatives with Credit Guarantee

Rwanda will receive support for green and sustainable initiatives with a partial credit guarantee from the African Development Fund’s Board of Directors – the African Development Bank (AfDB) Group’s concessional lending arm.

The initiative, dubbed the Partial Credit Guarantee for Mobilization of Sustainable Financing for Rwanda, aims to secure up to €200 million from international commercial banks.

“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,” Bank Group Acting Director for Financial Sector Development Ahmed Attout said.

The financing will be channelled into various sectors, including renewable energy, climate adaptation, energy efficiency, disaster risk reduction, healthcare, food security and more, aligning with Rwanda’s National Strategy for Transformation for 2017-2024 and Vision 2050.

The move not only supports Rwanda’s sustainable development goals but also positions the country as a reliable borrower in international markets. The financing also conforms to Rwanda’s Sustainable Finance Framework, outlining guidelines for fund allocation, project selection, evaluation and reporting in accordance with international standards for green and sustainable initiatives.

“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,” added Mrs. Aissa Touré, the Bank Group’s Country Manager for Rwanda.