Rwanda’s options for funding its $11bn climate action ambition

Rwanda is gearing up to launch a green investment facility at the upcoming United Nations Climate Change Conference, COP27. Teddy Mugabo, the CEO of the Rwanda Green Fund, discussed the country's ambitious target of achieving a 38% green economy and the $11 billion needed to make it a reality. The Rwanda Green Fund plays a crucial role in mobilizing the necessary finance to reach this goal. Mugabo highlighted the importance of attracting private investments through the creation of various financial instruments and strategies to position Rwanda as an attractive destination for green investments. With the aim of mobilizing $11 billion by 2030, the Rwanda Green Investment Facility is set to be launched in partnership with the Development Bank of Rwanda. This facility will focus on leveraging private investments to support Rwanda's green economy. The funding model for the Green Investment Facility utilizes a green banking approach, blending grants to de-risk projects and attract private capital. Over the past decade, the Rwanda Green Fund has witnessed a significant shift in the quality of proposals and uptake of funding. Mugabo noted the increased awareness and urgency surrounding climate change, prompting a greater demand for sustainable initiatives. Looking ahead, the Rwanda Green Fund 2.0 will shift its focus towards supporting the private sector and attracting more private investments. The fund recognizes the importance of immobility and has been instrumental in funding startups and initiatives in this space. As Rwanda prepares to participate in COP27, Mugabo emphasized the importance of reinforcing partnerships, exploring carbon finance opportunities, and launching the Rwanda Green Investment Facility. He expressed confidence in Rwanda's progress towards a green economy, citing the country's strong policy framework and the dedicated efforts of the Rwanda Green Fund. With a clear vision and strategic financing, Rwanda is poised to achieve its green economy goals.