Supporting Rwanda's climate trajectory by encouraging public and private climate finance flows

Rwanda, a small, densely populated East African country with low GDP and GDP per capita, has a low-carbon energy mix. However, the country is particularly vulnerable to the effects of climate change.

In December 2022, Rwanda became the first African country to access the IMF's Resilience and Sustainability Facility (RSF). Amounting to USD 319 million, this financing is backed by a matrix of reforms that sequence disbursements.

The RSF also aims to play a catalytic role, by attracting more financing towards Rwanda's climate objectives and enabling climate change risks to be better taken into account and managed.
 

This program aims to contribute, in synergy with the reforms supported by the IMF within the framework of the RSF, to the alignment of public and private financial flows with climate issues, in order to accelerate the achievement of the objectives set out in the NDC, through two specific objectives:

1. Public finances more sensitive to the challenges of adapting to and mitigating climate change;
2. A greener financial system, with the financial sector taking better account of climate risks and a commitment to sustainable finance.

By the end of the program, it is expected that:

• Rwandan public finances will be more climate-sensitive, enabling investment, spending and public procurement decisions to be better aligned with the NDC's climate objectives;
• Financial system players, and in particular the Central Bank, will be better equipped to take climate risks into account and align their actions with the country's climate objectives.