Equity Bank Rwanda has launched "Energy, Environment and Climate Change pillar” under its social impact department that will finance businesses with the aim to fight against climate change and its effects.

The initiative was launched on Monday during a stakeholder engagement with partners from public sector, private sector and NGOs.

Equity Bank Rwanda Managing Director, Hannington Namara explained that the bank has invested in initiatives to promote clean energy use and environment conservation.

"We believe that we must invest in our communities and people for a sustainable future. As a leading bank, we have a role to play in transforming livelihoods by employing alternative energy solutions to conserve the environment,” he said.

Officials pose for a group photo during the launch of the initiative  on Monday, June 13. All Photos by Craish Bahizi

Through this pillar, Equity Bank Rwanda will have different initiatives that seek to increase awareness of the benefits of using clean energy and providing structures that promote clean energy solutions for both domestic and industrial use.

Dianah Mukundwa, the Head of Investment and Social Impact at Equity Bank Rwanda said that the opportunities for accelerating climate financing are in the sectors of renewable energy, energy efficiency, green building and climate smart agriculture.

"We are developing products that are in line with the Energy, Environment and Climate Change pillar. Therefore, we gathered our clients and stakeholders to raise awareness about the initiative. As the world is heading into a catastrophe due to greenhouse gas emissions causing global warming, the banks should stand out to finance bankable business projects with the aim to fight against it,” she said.

Associate Director Energy Enviroment & Climate Change at Equity Group Foundation, Eric Naivasha delivers remarks during the event in Kigali  

According to Mukundwa, the bank is ready to serve the clients as some have already been financed in such a pillar.

"We have trained all our staff to first understand the products we are planning for the clients in this sector. This has been followed by the launch with the stakeholders to raise awareness about the initiative. There are some products in energy and environment and then we will continue with developing affordable products depending on the clients’ needs on the market as we always innovate products,” she said.

Broader focus of Equity Group Foundation

Equity Group Foundation focuses on promoting the conservation of natural resources through expanding forest cover, improving water security and providing renewable energy and energy efficient technologies as smart alternatives with no negative effects on the environment.

Equity Group Holdings, through Equity Group Foundation (EGF) seeks to increase awareness of the benefits of clean energy for cooking, lighting & heating for both domestic industrial use.

 By tapping into solar, water, wind and bio-fuels as energy sources to provide heat, lighting and electric current to run households and industrial machines, the environment is preserved, in addition to the reduced cost of energy incurred.

Dubbed "Energy, Environment and Climate Change pillar” the initiative is under the bank 's social impact department that will finance businesses with the aim to fight against climate change and its effects.

Some of the energy solutions include bio-digesters.

Biogas alleviates two major environmental problems: the global waste epidemic that releases dangerous levels of methane and the reliance on fossil fuel energy to meet global energy demand.

The key interventions also include solar irrigation systems which increase access to water for farming, and are robust, portable, efficient and long lasting.

It also supports efficient utilization of energy through energy audits and funding of retrofits and grid tied systems necessary to reduce power consumption in both commercial and residential establishments, in order to switch to more sustainable and environmentally friendly energy sources such as solar electricity, solar water heating and biomass energy.

These interventions also support the productive use of energy (PUE) around mini-grids, developed in areas without the main grid, for activities such as water pumping & Irrigation, aeration for aquacultures, refrigeration & cooling machines as well as poultry lighting.

In addition, they support value addition in agriculture through solar PV in milling and packaging and also facilitate   access to clean and purified water through financing the acquisition of water storage tanks and purifiers for institutions, as well as households for domestic and farm use.

Hannington Namara Managing Director at Equity Bank (R) interacts with delegates after the official launch

 EGF works with mini-grid developers to develop proposals that are attractive to Equity Bank for funding as commercially viable investment projects.

RURA's General Manager in charge of Energy, Water and Sanitation Department, Alexis Mutware said that while government targets to reach universal access to electricity by 2024, Equity Bank contribution to renewable energy financing is timely to achieve the targets.

Currently 69.8 percent of Rwandans have access to electricity of which 48 per cent have access to on-grid energy while 21 per cent have access to off-grid energy.

Banks urged to increase climate financing in Africa

According to Maxwell Gomera, UNDP Resident Representative, more resources are required to transition to a low carbon economy.

"If we are to transform the energy economy alone across the African continent, we need $170 billion dollars every year of investment. That is financing which is not available for African governments. The money from donors is also limited because it was $50 billion much less than what we need. The money will come from banks such as Equity Bank, the private sector to whom we are looking for such kind of financing” he said.

He noted that UNDP is working with banks to come up with instruments that make sense to finance the projects.

"For instance, what are products suitable for people using charcoal with different levels of affordability? We are looking to banks for mobilizing resources and coming up with the right products,” he said, adding that governments have also to take the right policies to incentivize other sectors to act in a green economy.

Faustin Munyazikwiye, the Deputy Director General of REMA commended Equity Bank for giving its contribution to reducing carbon emissions.

"We feel thrilled when invited by a private sector to discuss environmental protection. Banks should mainstream environment and climate change in their plans to promote green economy” he said, adding that banks have integrated environmental impact assessment in projects that seek financing.

He said that the country seeks to be a carbon neutral country by 2050 explaining this can’t be achieved with government efforts only.

"When it comes to access to climate finance, we want to see Equity Bank and extended family embracing innovative ways of attracting climate finance including carbon market, green bond and others. We need to build capacity together and build a carbon market in Rwanda,” he noted.