Africa RISE programme supports financial landscape in Rwanda

The Africa RISE team has been working in Rwanda to identify projects that require investment to ensure that appropriate financing instruments can be developed, adapted to overcome challenges, and successfully applied. This work is an effort to go against the experience to date in the country that shows there are many obstacles to the effective deployment of financing instruments.

The Africa RISE programme is a regional technical assistance facility which supports inclusive and sustainable growth, job creation and decent work in Eastern Africa, Southern Africa and the Indian Ocean region. It is funded by the European Union (EU) and implemented by a consortium led by Landell Mills.

A key objective of the Africa RISE team’s work in Rwanda was to create a pipeline of private sector projects in the country. The team identified specific financing mechanisms that could support these projects and proposed instruments that should be set up to further develop the financial ecosystem in Rwanda. In July 2023, consultants from the Africa RISE team participated in a panel at the EU-Rwanda Business Forum where they discussed the financial ecosystem of the country.

Rwanda has an aspiration to become a leading pan-African hub for local, regional, and international sustainable finance, as outlined in its Sustainable Finance Roadmap which was launched in October 2022. Rwanda’s Financial Sector Development Strategic Plan is a long-term development strategy, which is also geared towards making the country an international service centre. The overarching vision is to develop a stable and sound financial sector that is sufficiently sustainable to address the economy’s development needs. The aim is to integrate Environmental, Social, and corporate Governance (ESG) considerations into local business models and lending practices.

Rwanda’s financial sector has already made substantial progress towards becoming more inclusive and modern, and transitioning towards an increasingly sustainable economy. This includes working to attract large-scale investment opportunities in new and upcoming sectors, such as green and sustainable financing and FinTech. Additionally, the Kigali International Financial Centre (KIFC) has recognised the role that the financial sector needs to play in driving the country’s sustainable growth through capital mobilisation and allocation of economic resources. When financial services reach out to the population broadly and efficiently, they accelerate economic growth, efficient allocation of resources, and improved wealth distribution.