IFC To Build Green Project Pipeline With Rwanda

Construct Africa   2024-05-17 11:38:43

The IFC, the private sector arm of the World Bank, has announced it will support the Rwanda Green Fund to build a pipeline of bankable projects related to sustainable cities and climate-smart agriculture in Rwanda.

It is one of five advisory partnerships that the IFC signed with the government of Rwanda during the Africa CEO Forum in Kigali, which runs from 16-17 May. The others relate to the privatisation of state-owned enterprises and corporate governance.

The Rwanda Green Fund is a financing vehicle for public and private investments to accelerate and provide growth capital to high-impact green ventures. The IFC says it will help the fund to identify a pipeline of bankable projects while also providing reform recommendations to unlock private investment into climate-smart agriculture and green city development.

The IFC will also work with the Ministry of Finance and Economic Planning to support the government's state-owned enterprise (SOE) reform and privatisation programme. It will provide technical assistance to the ministry, including training for its staff, and reform advisory on SOE corporate governance and asset monetisation.

A further partnership with the Capital Markets Authority will support the integration of environmental, social and governance (ESG) standards into the capital markets industry codes on conduct and regulations. This is intended to help Rwanda to position itself competitively in the regional market and bring opportunities for regional and international investment.

The IFC will similarly work with the Rwanda Association of Professional Environmental Practitioners to deepen the knowledge and understanding of ESG consultants that can assist businesses in Rwanda to adopt ESG practices including IFC Performance Standards and Corporate Governance Methodology, Equator Principles, and the relevant European Union requirements.

The final advisory partnership agreement is with the Rwanda Bankers Association to help banks in Rwanda to improve their ESG standards and practices by developing ESG guidelines for the market and to support implementation including training of banks on ESG risk management.

“Today's partnership underscores the government of Rwanda's commitment to fostering a thriving private sector, creating quality jobs, strengthening economic fundamentals and climate resilience, along with the best practices in terms of governance," said Jeanine Munyeshuli, Minister of State for Public Investments and Resource Mobilisation.

"Rwanda is a leader in the region driving green and sustainable growth. IFC has a track record of supporting Rwanda's ambitious growth and development plan and the partnerships signed today will further strengthen our collaboration and the private sector's central role driving job creation and opportunities for the country," said Makhtar Diop, IFC managing director.

The IFC's work in Rwanda is focused on promoting sustainable markets and private sector development across four priority sectors: affordable housing, agribusiness, inclusive finance, and sustainable infrastructure. The IFC has also been supporting Rwanda to develop a new life sciences park as the country seeks to position itself as a leader in Africa's vaccine and pharmaceutical development. The IFC is also working with partners to strengthen the country's grain market, water infrastructure and lending to SMEs.