The European Investment Bank (EIB Global) and the Bank of Kigali (BK) on March 14, inked a ground-breaking €100 million (approx. Rwf140 billion) sustainable agriculture financing partnership, to bolster farmers and agricultural enterprises across Rwanda, fortifying them against the economic, social, and business ramifications of climate change.

As part of the European Union’s Global Gateway partnership, this initiative complements the Team Europe effort, "Investing in Sustainable and Inclusive Agricultural Transformation” in Rwanda, expanding European assistance to €384 million.

Diane Karusisi, CEO of BK, said, "This partnership marks a significant stride in advancing Rwanda’s agricultural sustainability and underscores BK’s commitment to fostering economic resilience against climate change.”

Karusisi added that through this collaboration, they are boosting transformative change, ensuring a climate-resilient future not only for Rwanda, but beyond.

"It’s a commitment that exceeds mere financial backing, signalling our dedication to green growth,” she added.

The signed investment represents the largest ever EIB support for the private sector in Rwanda, providing a substantial lift to smallholders, businesses, and enterprises reliant on climate-vulnerable agriculture across the nation.

Thomas Ostros, EIB Vice President, highlighted, "The agreement we’ve signed today will further amplify the impact of climate-related investment by developing a green taxonomy for the financial sector, facilitating the scaling up of green investment aligned with the objectives of the 2015 Paris Climate Agreement.”

He further pointed out that the bank will mobilise climate finance by addressing barriers hindering engagement by commercial banks, enabling them better to embrace climate finance best practices across all activities, catalysing new funding for green projects, and improving assessment, monitoring, and reporting on climate-related risks.

Ostros underscored how the €100 million investment partnership with BK exemplifies how agricultural financing directly contributes to achieving Sustainable Development Goals (SDGs).

"The EIB is collaborating with partners to expand the agri-value chain lending pipeline in Rwanda, ensuring greater food security, improved incomes for farmers, women’s empowerment, and sustainable job creation. This aligns with the EIB’s commitment to financing innovative and impactful solutions for a greener, more efficient, climate-resilient, and sustainable agriculture system in Sub-Saharan Africa,” he said.

The initiative aims to address long-standing credit constraints hampering private-sector agriculture investment by facilitating access to dedicated, long-term loans. It will be implemented in close collaboration with the European Union, which supports agriculture programmes in Rwanda, including value chain development, notably in horticulture and aquaculture.

Aligned with the COP28 Action Agenda, it brings food and agriculture systems to the forefront of climate action.

Belen Calvo Uyarra, Ambassador of the Delegation of European Union to Rwanda, remarked, "This new partnership between the EIB and BK, backed by the European Union, demonstrates how committed financial partners can bridge gaps by supporting private sector development in the agriculture sector—one of the drivers of the country’s economy,” she said.

Moreover, she highlighted that it also facilitates access to markets and finance for agri-food SMEs and smallholder producers while focusing on tackling the impact of climate emergency and supporting vulnerable communities threatened by climate change.

At the signing ceremony, EIB and BK announced plans to provide technical assistance as part of the EIB’s broader support for greening Rwanda’s financial system. Leveraging its expertise as the EU climate bank, the EIB will collaborate with the BK to enhance its approach to climate risk management and the financing of green projects.

Moreover, the initiative will enhance the capacity to finance green projects by local financial institutions. This will mark the second technical assistance project to be implemented in Africa under the EIB’s Greening Financial Systems Programme, financed by Germany through the EIB’s International Climate Initiative Fund.

Hubert Asiimwe, Head of the financial sector development department at the Ministry of Finance, highlighted Rwanda’s longstanding partnership with the EIB, spanning various sectors such as infrastructure, energy, and health.

Asiimwe also mentioned ongoing and upcoming projects, including volcano community resilience projects, emphasising the current focus on greening the agriculture sector to ensure sustainable agriculture and environmental preservation.

Over the last decade, the EIB, as the world’s leading climate financier, has bolstered the climate finance technical skills of over 40,000 African financial professionals. Additionally, it has provided more than €225 million (approx. Rwf315 billion) for private sector investment across Rwanda in partnership with Rwandan businesses, banks, financial partners, and microfinance institutions.