BRD CEO, Kampeta Pitchette Sayinzoga (right) and the PREV Rwanda Ltd Chairman, Donald Kabanda.
The Development Bank of Rwanda (BRD) has started releasing financing to the private sector using funds pooled in the country’s first green growth fund-Ireme Invest.
Ireme Invest is an initiative by the Government of Rwanda, jointly implemented by BRD and the Rwanda Green Fund, to address local market gaps in the financing of green and climate-resilient projects.
The initiative has so far managed to pool between $100-$150million since its launch in 2022 at the United Nations Climate Change Conference (COP27) in Sharm El Sheikh, Egypt.
The first financing was released this February 20, 2024,to a local e-mobility company with signing of the first loan agreement under the Ireme Invest Credit Facility as another step to supercharge Rwanda’s transition to smart electric mobility.
The agreement was signed between BRD CEO, Kampeta Pitchette Sayinzoga and the PREV Rwanda Ltd Chairman, Donald Kabanda.
Through the credit facility, eligible projects (in green growth) will or can benefit from loans and a credit guarantee under the following terms: a 12% interest rate(all fees inclusive),a tenor of up to 12 years and a possible grace period of up to two years, access to a partial credit guarantee, however refinancing of existing loans does not apply to this facility.
Sayinzoga said that the signing represents a significant step forward in Rwanda’s commitment to reduce emissions and achieve carbon neutrality by 2050 and delighted to partner with PREV as a pioneer beneficiary to advance electric mobility in Rwanda.
She stated that through the concessional loan, PREV Rwanda Ltd will introduce additional electric vehicles into its fast-growing fleet, contributing to Rwanda’s smart mobility sector and reinforcing the nation’s commitment to a sustainable and climate-resilient future.
BRD and PREV officials signing the financing agreement
“This collaboration shows BRD’s commitment to support projects that are looking to join the green transition. Partnerships like these enable the private sector to create more green jobs, contribute to Rwanda’s climate action journey and prioritise sustainability,” Sayinzoga said.
Sayinzoga used the opportunity to encourage more private sector players to make the most of this facility and opportunities that Ireme Invest offers to all.
Broadly, the Ireme Invest intends to finance green and climate-resilient projects across various sectors, including smart mobility, clean energy, sustainable cities, climate smart agriculture, and waste and circular economy.
As the first beneficiary, Donald Kabanda said that this is a huge milestone for PREV and for Rwanda’s green transport ecosystem.
Through the Ireme Invest Credit Facility, we are taking a big step forward to realizing the country’s vision to be carbon neutral, and this is just the beginning. We encourage other companies to take a leap of faith and partner with Ireme Invest to go and grow green,” said Kabanda
One of the PREV full electric vehicles parked at BRD offices. PREV plans to improve smart transport in Kigali
