Until recently, I could not confidently explain how bonds work. But once I understood the basics, it changed how I think about investing and I think it might do the same for you. Stay with me.

For a long time, saving in Rwanda has been about what we can see and touch. Land, a house, livestock. There’s even a saying: "Ukena ufite itungo rikakugoboka” when times are hard, what you own comes to your rescue.

And it makes sense. These are investments we trust because they have worked for generations.

READ ALSO: PRESS RELEASE: BRD launches third sustainability-linked bond

Even today, that instinct is strong. According to the 2024 FinScope Survey by the National Institute of Statistics of Rwanda, about 5 million Rwandans invest in non-financial assets like land and livestock. These are familiar, tangible, and historically reliable investment tools.

But this is changing. More Rwandans are starting to use formal financial systems. In fact, according to the FinScope Survey, the number of adults using formal savings grew from 3.8 million in 2020 to 4.8 million in 2024. Initiatives like EjoHeza and the expansion of banking and pension systems are making it easier to save differently, the survey assessed.

We are moving from simply keeping money... to growing it.

READ : BRD lists second Sustainability-linked bond on Rwanda bourse

That said, traditional investments like land still come with challenges, high upfront costs, market uncertainty, and ongoing maintenance that can slowly eat into returns. And when those options feel out of reach, many of us fall back on saving money in the bank...where it often just sits.

But what if your money could work for you; predictably, consistently, and without needing millions to start?

Let me introduce you to something simple: a bond. At its core, a bond is straightforward. You lend money to an institution, and in return, you earn interest regularly. When the bond matures, you get your full investment back without waiting years to see if land prices go up.

In 2023, the Development Bank of Rwanda (BRD) introduced something even more interesting: a Sustainability-Linked Bond (SLB), the first of its kind issued by a development bank globally.

An SLB offers more than financial returns. The funds raised are tied to real development goals, in this case, increasing access to affordable housing and supporting women-led businesses.

The market response was remarkable. After the first issuance, a second bond was issued in 2024. Both bonds raised over Rwf63.5 billion. But what stood out even more was who was investing. Individual participation grew from just 3% to 9%.

This is important because when more individuals invest, the stock market becomes more active. Unlike large institutions that tend to hold investments until maturity, individuals buy and sell more frequently creating liquidity and energy in the market. Individual investors also buy bonds with immediate funds that the bank can use to implement set development goals.

Now, a third Sustainability-Linked Bond is open on Rwanda Stock Exchange. It offers an annual interest of 12.7% paid every six months. The full capital is returned after 10 years and requires a minimum investment of just Rwf100,000, making it the most accessible bond on Rwanda’s bonds market.

And beyond the returns, your investment is doing real work financing affordable housing and expanding access to finance for women-owned businesses. The impact is already visible. Affordable housing loans have grown from around 400 to over 16,000 by 2025. The goal now is to reach 20,000 homes and double support to women-led businesses by 2028.

This is the true spirit of Rwanda’s signature philosophy of "Kwigira” and relying on homegrown solutions – mobilizing our own resources and giving everyone a chance to be part of Rwanda’s growth story.

The next time you think about your next money move, it might be worth asking: Is it only about owning something or also about growing something? Maybe the smartest investment now is not only the one you can see, but the one that works for you.

Ange Iliza is the PR and Communications Officer at the Development Bank of Rwanda (BRD).