With the ongoing need for climate resilience efforts, business executives were, on April 27, informed about available climate financing opportunities for them to play an active role in driving sustainable development. ALSO READ: A look at 15 major climate finance flows in Rwanda This was shared during a forum themed ‘Sustainability Opportunities and Financing Options’, organized by BK Capital in partnership with Dalberg. Siongo Kisoso, Managing Director at BK Capital, said that sustainability has become a very important topic because of the risks emanating from climate change, but there are also opportunities that businesses can use to improve performances. “It is true that most green technologies have high cost but the benefits of adopting them are very clear on a long-term basis. As an institution, we help you structure your investment request and present it to investors that have an appetite for this long-term investment.” Kisoso noted that it is crucial for businesses to have financing solutions that are specifically tailored to them. For some years now, the topic of climate change has been a priority as a result of long-term developmental actions taken by countries without considering their future consequences. ALSO READ: Climate crisis threatens Africa’s development – Kagame To take effective measures, countries have to limit global warming to 1.5 degrees Celsius by 2030. To achieve this, carbon emissions must be reduced between 25 and 50 per cent to where they were in 2019 by 2030. In Rwanda, it is projected that if nothing is done in the next decade, the negative impact of climate change would take away about five to seven per cent of GDP. To address this, experts affirm that it is imperative that the private sector engages in sustainable ways of doing business and is intentional about achieving its ESG (Environmental, Social, and Governance) targets. ALSO READ: Rwanda launches over $100m green investment facility Teddy Mugabo, the CEO of Rwanda Green Fund, said that to develop green climate solutions in Rwanda, tailored and innovative finance must be availed at speed and scale. She highlighted that in addition to other existing initiatives at the fund, Ireme Invest will enable the private sector across all stages of the business lifecycle, from feasibility to bankability. The facility managed to raise capitalization worth $104 million with an aim to drive private sector ventures in climate-resilient projects. She added that there’s a need to raise awareness that going green doesn’t necessarily mean that one needs to start a new business, but even existing ones can make the transition. Rwanda is also the first African country to secure a $319 million loan under the Resilience and Sustainability Trust - an initiative that aims at helping low-income and vulnerable middle-income IMF members address longer-term structural challenges such as climate change with longer-term low-cost financing. CJ Fonzi, Co-founder of Africa Climate Ventures, emphasized that Africa is home to abundant resources that can be leveraged to find solutions to climate change problems, citing the increasingly young workforce, natural resources, and immense renewable energy potential. He said there are mechanisms to expand something that is working in one market and help in de-risking and accelerating it to other markets on the continent but also facilitate businesses to monetize their ability to mitigate or capture carbon emissions and make it an engine of growth. Nick Barigye, CEO of Rwanda Finance Limited, said that through the Kigali International Finance Centre, businesses have access to a pool of information and investors that is crucial to creating networks that translates into securing capital. “We are seeing a wider array of sources of funding because, primarily, we always think about equity and debt, but with instruments such as Ireme fund, then we’re able to mobilize more capital sources that will be able to fund different initiatives,” he added. However, he added that businesses should also work on their social impact and good corporate governance because this is something that investors take note of.
