Issue green bonds for sustainable development

On April 25, Rwanda issued 10-year bonds worth US$400 million to international investors. The funds raised will be used to pay off short-term debt and complete some strategic investments.As an agriculture hub with investor-friendly policies, our comparative advantage, Rwanda should issue 10-year Green Bonds that will generate funds needed for strategic investment in social and physical infrastructure. This will improve the country’s productive potential, facilitate sustainable socio-economic development and ensure that the bondholders are paid when their investments mature.Green bonds targeted at Kuwait, Oman and Saudi Arabia sovereign wealth funds will generate billions of dollars. These Gulf countries have an average debt-to GDP ratio of 8% while the European Union has an average debt-to-GDP ratio of 95%. If Europeans could raise US$400 million then the Arabs of the Gulf can raise much more.Given that these bonds will mature in 10 years, the youth and children are the ones who will shoulder the responsibility of paying off the debt. Thus, they should be the primary beneficiaries of the funds generated by the bonds issued. Looking at primary education today one is appalled by the amount of free time that the children have. As we know, idle hands and minds are the devil’s workshop. Therefore, substantial funds need to be allocated to primary education and skills development.Research commissioned by the Royal Horticultural Society and conducted by the National Foundation for Educational Research shows that apart from helping children to lead happier and healthier lives, gardening helps them “to acquire the essential skills they need to fulfill their potential in a rapidly-changing world and make a positive contribution to society.”There is a need to train thousands of teachers to use gardening to teach. This will help children to “develop into more skilled and creative thinkers who can adapt to the changing needs of society and the jobs market later in life, creating entrepreneurs of the future. Not only does gardening provide opportunities for increasing scientific knowledge and understanding, and improving literacy and numeracy, it also improves confidence, resilience and self-esteem. It gives children a sense of responsibility and fosters positive behaviour.”Children that attend classes in the afternoon can participate in gardening projects in the morning while those that attend classes in the morning can spend their afternoons in gardening plots. This will make it easier for parents to play a more active role in their children’s learning and share their knowledge and skills with them.Rural development will also be facilitated by the availability of Green Bond funds. This is indispensable if Rwanda is to reduce unemployment and poverty and achieve self-sustainable development. It will enhance Rwanda’s ability to supply food-insecure countries like Saudi Arabia with agricultural products like milk, poultry and wheat.Research conducted by the International Maize and Wheat Improvement Centre found that Rwanda is one of the countries with the best potential for profitable rain-fed wheat farming.Saudi Arabia is expected to import 3.3 million tonnes of wheat yearly. Saudis consume over 1 billion litres of milk every year and will import over 800,000 tonnes of poultry this year.Opportunities for mutually-beneficial engagement with Saudi Arabia, Kuwait and Oman are immense and long-lasting if our agro-pastoral entrepreneurs are equipped with the skills and tools to improve their competitiveness.