Ireme Invest, a Rwandan private sector green financing facility, has secured €20 million (approx. Rwf 26.3 billion), accompanied by a one-million-Euro grant in technical assistance from the Agence Française de Développement (AFD) to support projects aimed at sustainable development and climate resilience.
The official credit agreement was formalised during a signing ceremony held on November 3 between the Development Bank of Rwanda (BRD) and AFD.
Ireme Invest aims to promote innovative solutions that align with Rwanda's climate goals, offering financial and technical support to businesses and projects prioritising climate mitigation and adaptation strategies.
Eligible projects in investment areas that include clean energy, smart mobility, sustainable cities, climate-smart agriculture, waste, and circular economy will benefit from favourable loan terms.
Those include a fixed 12 per cent interest rate with all fees included, a flexible tenor of up to 12 years, and the potential for a grace period of up to two years, along with access to a partial credit guarantee to ease collateral coverage.
During the signing ceremony, Kampeta Sayinzoga, CEO of BRD, highlighted that the loans will be provided at a lower interest rate compared to the standard 16 per cent prevailing in the market, adding that the terms will be extended to selected projects that fulfill specific criteria.
She said that the criteria are in line with global best practices aimed at promoting authentic transformation towards eco-friendly business practices. Furthermore, she noted that the initiative is inclusive, welcoming both existing businesses seeking to transition towards green practices and new businesses eager to partake in environmentally friendly activities.
She added: "We're thrilled to formalise this ground-breaking financing agreement with AFD, reaffirming our commitment to advancing climate initiatives in Rwanda. 'Ireme Invest' is a beacon of hope for a more resilient and sustainable future. With this financing, we'll accelerate climate-centric projects, aligning with Rwanda's green economy vision."
Sayinzoga expressed gratitude to AFD for the generous support from the re-established diplomatic relationship between Rwanda and France, highlighting that the initiative solidifies their partnership.
Being one of the initial development partners to pledge support for 'Ireme Invest,' AFD showcased its dedication to promoting positive change and tackling the urgent challenges presented by climate change.
According to Arthur Germond, AFD Country Director for Rwanda, one of the strategic pillars of AFD’s intervention in Rwanda is a systemic approach to the greening of the financial system to enhance the country’s resilience to climate change.
"Ireme Invest will be instrumental in catalysing investment to support Rwanda’s ambitious climate action goals. AFD is very excited to be part of this transformative journey spearheaded by BRD and the Rwanda Green Fund,” he said.
French Ambassador to Rwanda, Antoine Anfré said that with Ireme, Rwanda once again shows that it is at the forefront of the fight against climate change.
"Ireme Invest was launched at COP27 in the presence of President Kagame and the French Minister of State, Mrs Chrysoula Zacharopoulou. I am proud we have reached this significant milestone ahead of COP28. This initiativeembodies the spirit of collaboration and innovation that characterizes France’s action in Rwanda,” he added.