African Development Fund Approves Partial Credit Guarantee to Support Rwanda’s Green and Social Initiatives

The Board of Directors of the African Development Fund, the concessional lending arm of the African Development Bank Group, has given the green light to a partial credit guarantee aimed at bolstering Rwanda’s efforts in mobilizing financing for green and social initiatives.

Dubbed the “Partial Credit Guarantee for Mobilization of Sustainable Financing for Rwanda” project, it is designed to facilitate Rwanda’s access to up to €200 million from international commercial banks. This move aims to diversify the country’s funding sources and support various sustainable development endeavors.

The allocated funds will be channeled into eligible projects spanning renewable energy, climate adaptation and mitigation, disaster risk reduction, biodiversity conservation, energy efficiency, forestry, food security, healthcare, affordable housing, and social services, among others.

Aligned with Rwanda’s National Strategy for Transformation (NST-1) for 2017-2024 and Vision 2050, the initiative seeks to position Rwanda as a credible borrower in the international financial markets while adhering to sustainable finance principles. It also aligns with Rwanda’s Sustainable Finance Framework, outlining guidelines for project selection, evaluation, and reporting in line with global best practices.

Ahmed Attout, Acting Director for Financial Sector Development at the Bank Group, emphasized the innovative use of African Development Fund resources to secure long-term financing for development, ultimately contributing to Rwanda’s sustainable development goals.

Aissa Touré, the Bank Group’s Country Manager for Rwanda, highlighted the project’s alignment with the Bank Group’s Ten-Year Strategy (2024-2033) and Rwanda’s national development strategies, emphasizing its role in driving inclusive green growth and fostering resilient economies in Africa.

Through this initiative, Rwanda aims to harness sustainable financing to drive its development agenda forward, with a focus on green and socially impactful projects.