Rwanda Launches $104m Green Economy Fund

  • Rwanda’s President Paul Kagame launches “Ireme Invest”.
  • The $104 million green investment facility will support the private sector in developing a climate-friendly economy.

The Rwandan Government strengthen its support to the private sector,  particularly in implementing climate-friendly economy projects. At the Rwandan pavilion of the 27th United Nations Climate Change Conference (COP27) in Sharm el-Sheikh, Egypt, Rwandan President Paul Kagame announced the creation of a $104 million fund. The money for developing environmentally friendly and resilient projects in Rwanda will come from the green investment facility known as “Ireme Invest.” The objective is to hasten the country’s transition to a low-carbon economy.

The fund will focus on initiatives in critical industries, such as installing renewable energy (solar and hydro), enhancing industrial process energy efficiency, enacting pollution requirements, deploying electric vehicles, and encouraging biogas on farms.

The fund has seed money from the Development Bank of Rwanda (BRD). BRD, which builds on the Rwanda Green Fund’s successful track record (FONERWA). According to Paul Kagame, the European Investment Bank (EIB), the Green Climate Partnership Fund, and the governments of France, Sweden, and the United Kingdom, have also made investments in the Green Investment Facility.

The country of East Africa is anticipated to be able to advance with the implementation of its climate strategy, which was presented in 2020, thanks to the new green investment fund.

Rwanda’s plan includes ten projects worth $2.4 billion planned by the Rwandan government to meet the Paris Agreement’s 2030 targets. One of these targets is reducing greenhouse gas (GHG) emissions. In 2015, these emissions were estimated at 5.3 million tonnes in Rwanda. Experts estimate that they could double by 2030.

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