An aerial view of Kigali Special Economic Zone (KSEZ)
Rwanda has taken significant strides in developing a robust Environmental, Social, and Governance (ESG) framework aimed at attracting investments and achieving sustainable development goals.
This innovative approach aligns with the country’s long-term vision amidst limited concessional financing from traditional development partners.
With the ambitious goal of reaching upper middle-income status by 2035 and becoming a high-income country by 2050, Rwanda recognizes the importance of securing sustainable financing to realize this vision.
The ESG framework serves as a comprehensive set of standards assessing Rwanda’s management of environmental impact, social policies, and governance practices.
It provides valuable insights for investors, policymakers, and international organizations into Rwanda’s commitment to sustainability, ethical business practices, social responsibility, risk management, innovation, competitiveness, and long-term stability.
By strengthening its ESG framework, Rwanda aims to create new opportunities for investment, bolster its reputation as a nation dedicated to sustainability and responsible business practices, and enhance its overall competitiveness and long-term sustainability.
In 2021, Rwanda and the Arab Bank for Economic Development in Africa (BADEA) signed a financing agreement worth US$ 20M to support the development of basic infrastructure at Kigali Innovation City (KIC) project.
In a significant milestone, in June 2024, Rwanda successfully secured a EUR 200 million sustainable loan from JP Morgan, with support from a partial credit guarantee from the African Development Bank (AfDB).
This funding, secured on semi-concessional terms, will be channeled into projects like; urban economic development project in two secondary cities and one district town, Government funded modern irrigation (GFI), Sustainable Agriculture Intensification and Food Security Project (SAIP) and many more that align with Rwanda’s ESG framework, showcasing the country’s unwavering commitment to building a sustainable and resilient future.
The successful acquisition of funding was made possible following a positive second-party opinion from S&P on Rwanda’s ESG framework. This endorsement underscores Rwanda’s dedication to responsible governance and sustainable development, further enhancing its credibility as a borrower committed to upholding ESG principles.
