Rwanda’s newly created Green Investment Facility which is solely dedicated to financing private investors’ green projects is expected to create 367,000 jobs.
The $104 million facility, was launched on Monday, November 8, by President Paul Kagame, at the 27th UN climate change conference taking place in Egypt.
The facility to be run by the Rwanda Green Fund (FONERWA) and the Development Bank of Rwanda (BRD) will provide financial services for quality green investments and foster private sector-led green growth.
Private sector companies will start to benefit from the fund from early 2023 according to a statement.
The fund is expected to support Rwanda to achieve its climate and development goals as well as create green jobs by investing in sustainable agriculture, renewable energy, e-mobility, and others.
Arthur Germond, Rwanda Country Director of the French Development Agency which is among the partners that provided the funds, disclosed that besides creating 367,000 green jobs, the fund will help reduce 1.32 metric tonnes of carbon emissions.
Out of the first $104 capitalization, a credit line of Euro20 million was provided by the French Development Agency (Agence Française de Dévelopement).
A credit line of Euro20 million will come from the European Development Bank, a guarantee cover of Euro20 million from the government of Sweden, a grant of GBP7 million from the government of the United Kingdom, a credit line of $15 million from the Global Climate Partnership Fund and a capitalization fund of $22 million from the Development Bank of Rwanda.
The investment facility will offer grants to cover early-stage project activities to move projects from feasibility to bankability.
A credit facility embedded within the Development Bank of Rwanda (BRD) will offer guarantees and concessional loans.