The African Development Bank (AfDB) and the Government of Rwanda have signed a partial credit guarantee agreement, securing €200 million to fund green and social initiatives. The agreement was signed during the AfDB’s Annual Meetings by Solomon Quaynor, Vice President for Private Sector, Infrastructure, and Industrialisation, and Dr. Uzziel Ndagijimana, Rwanda’s Minister of Finance and Economic Planning.
Approved by the Board of Directors of the African Development Fund in April 2024, the partial credit guarantee will enable Rwanda to raise up to €200 million competitively from international commercial banks. This initiative diversifies Rwanda’s funding sources and bolsters its position in international financial markets as a credible and sustainable borrower.
Solomon Quaynor emphasized that this transaction exemplifies the Bank Group’s commitment to supporting Regional Member Countries in accessing alternative sources of sustainable financing. This is in alignment with the AfDB’s Ten-Year Strategy (2024-33), which aims to accelerate inclusive green growth and foster prosperous, resilient economies across Africa.
Dr. Uzziel Ndagijimana expressed Rwanda’s dedication to sustainable development, highlighting that the funding aligns with Rwanda’s national strategy for transformation (2017-24) and Vision 2050. These strategic frameworks focus on economic growth, social development, and environmental sustainability.
The €200 million raised will be directed towards green and social projects, reinforcing Rwanda’s commitment to sustainable development and climate resilience. This funding will support various initiatives, including renewable energy projects, sustainable agriculture, and social infrastructure improvements, contributing to the nation’s long-term vision for an inclusive and green economy.
The success of this transaction is a testament to Rwanda’s robust financial management and strategic planning. It also sets a precedent for other African nations, demonstrating the viability and benefits of leveraging international financial markets for sustainable development.
As Rwanda continues to advance its transformation agenda, this agreement with the AfDB marks a critical step in mobilizing the necessary resources to achieve its ambitious goals. The partnership underscores the importance of collaboration between African nations and international financial institutions in driving sustainable growth and development across the continent.
