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European Union

Rwanda to Receive EUR 100 Million in Climate Finance for Agricultural Sector

Strategic Insights

— 2 min read

Rwanda is set to receive a substantial boost in climate finance, as the European Investment Bank and the Bank of Kigali have announced a EUR 100 million initiative to support farmers and agri-businesses in their efforts to adapt to climate change. The new financing scheme will provide a much-needed injection of capital to smallholders and businesses, enabling them to invest in modern farming technologies and techniques, and improve agricultural productivity. This initiative is part of the Global Gateway partnership and aims to tackle the impact of the climate emergency on vulnerable communities in Rwanda.

Key Takeaways:

  • The European Investment Bank and the Bank of Kigali are partnering to launch a EUR 100 million climate finance initiative for the agricultural sector in Rwanda, targeting smallholders and agri-businesses.
  • The initiative aims to enhance agricultural productivity, improve access to finance, and increase the economic empowerment of women in the agriculture sector.
  • At least 30% of the total financing under the new scheme will be dedicated to female entrepreneurs or businesses where a majority of employees are women.
  • The initiative is part of the Global Gateway partnership and supports the EU's climate action plan to reduce carbon emissions by 38% by 2030.
  • Rwanda has experienced a temperature increase of 1.4 centigrade since 1970, with most parts of the country projected to experience increased intense rainfalls, leading to floods and landslides.
  • Agriculture contributes to over 60% of total employment in Rwanda, with access to finance in the agriculture sector constrained due to lack of collateral, credit history, and limited access to capital markets.
  • The gender gap in access to agricultural loans remains significant in Rwanda, with 74.5% of men having access, compared to 25.5% of women.
  • The new initiative will support investment to enhance agricultural productivity, enabling smallholders to cultivate more climate-resilient crops, and adapting to changing climate conditions.
  • The initiative will also improve access to finance for women-owned or led agri-businesses, which are disproportionately constrained in Rwanda.

Statistics:

  • EUR 100 million: the amount of climate finance provided by the European Investment Bank and the Bank of Kigali for the agricultural sector in Rwanda.
  • 30%: the proportion of the total financing dedicated to female entrepreneurs or businesses where a majority of employees are women.
  • 1970: the year Rwanda started experiencing temperature increase of 1.4 centigrade, higher than the global average.
  • 1.4 centigrade: the temperature increase in Rwanda since 1970, leading to changing climate conditions.
  • 60%: the proportion of total employment in Rwanda contributed by the agriculture sector.
  • 74.5%: the proportion of men in Rwanda having access to agricultural loans.
  • 25.5%: the proportion of women in Rwanda having access to agricultural loans.

Sources:

  • European Investment Bank (EIB)
  • Bank of Kigali
  • European Union (EU)
  • Global Gateway partnership
  • Rwanda Green Fund
  • Bank of Kigali Plc
  • Global Credit Rating Co.

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