Development Bank of Rwanda CEO on new bank strategy, ESG compliance

The Development Bank of Rwanda is embarking on a transformative journey to double its balance sheet over the next five years. This ambitious goal comes on the heels of the launch of the bank's inaugural sustainable bond, marking a significant milestone in the institution's strategic evolution. In an exclusive interview with CNBC Africa's Julius Bizimungu, the Bank's CEO, Pitchette Sayinzoga Kampeta, shed light on the bank's new direction and its emphasis on ESG compliance. The CEO highlighted the pivotal role of the sustainable bond in diversifying the bank's financing sources and supporting Rwanda's capital market development. The decision to tap into the local market reflects the bank's commitment to achieving sustainable growth and fostering a green economy. Kampeta emphasized the importance of innovation and introducing new asset classes to cater to investors' increasing appetite for ESG-compliant investments. The sustainable bond's structure encompasses initiatives to finance women-led businesses, enhance affordable housing financing, and implement environmental and social management systems. These efforts underscore the bank's dedication to promoting sustainability and supporting clients in adopting ESG best practices. By engaging with financial institutions and offering technical assistance, the Development Bank of Rwanda aims to drive ESG compliance within the industry and advance the green finance agenda. Kampeta emphasized the bank's unique position to incentivize ESG adoption through a combination of grants, technical expertise, and credit lines. The bank's approach emphasizes collaboration with partners to navigate the ESG landscape and empower clients to align with global sustainability standards. The CEO shared insights on balancing profit-making objectives with the developmental mandate of a development financial institution. By leveraging innovative financing mechanisms and partnerships, the bank seeks to achieve development impact while ensuring financial sustainability. The successful recapitalization plan and prudent portfolio management have laid the foundation for the bank's solid financial performance and growth trajectory. Looking ahead, the bank's strategy for 2024-2028 focuses on scaling up operations and diversifying its portfolio to drive economic transformation. By prioritizing growth, strategic partnerships, and knowledge-based investments, the bank aims to contribute to Rwanda's transition to a knowledge-based economy. Financial stability remains a core pillar of the bank's strategy, underpinned by effective capital utilization and a commitment to sustainable development goals.