Supporting Rwanda’s low-carbon and climate-resilient transition through Ireme Invest

Rwanda has set itself an ambitious target: to achieve carbon neutrality by 2050. Its updated Nationally Determined Contribution (NDC) outlines a pathway to reduce greenhouse gas emissions by 38% by 2030 and strengthen resilience to climate change impacts such as floods, droughts, and soil erosion.

However, delivering on this ambition requires mobilizing over USD 11 billion by 2030 — more than the country’s annual GDP — and significantly increasing the share of private sector finance in green investments.

To address this challenge, Rwanda launched Ireme Invest in 2022, a multi-partner facility jointly managed by BRD and the Rwanda Green Fund. The facility, which is designed to channel concessional and blended finance into projects that deliver measurable climate benefits, create green jobs, and foster inclusive economic growth, receives support from AFD, the European Investment Bank, the Swedish International Development Cooperation Agency, the Danish International Development Agency, the Green Climate Fund etc.

AFD’s support to Ireme Invest combines affordable long-term finance with targeted expertise to accelerate Rwanda’s green transition. The €20 M concessional credit line allows BRD to extend medium- and long-term loans to private sector projects that deliver strong climate benefits — from renewable energy and energy efficiency to e-mobility, climate-smart agriculture, and resilient infrastructure.

To ensure these investments are high quality and impactful, the credit line is paired with a €1 M technical assistance grant. It helps BRD sharpen its climate finance tools, strengthen environmental and social safeguards, integrate climate risk analysis into lending, and train teams to work closely with businesses in shaping bankable green projects.

By addressing both financing gaps and capacity needs, the project makes it easier for the private sector to access funding for climate action, while ensuring investments align with Rwanda’s NDC targets and international best practices. It also positions BRD — and Ireme Invest — as central players in mobilizing substantial co-financing from other development partners and investors, paving the way for a thriving green finance ecosystem in Rwanda.

The financing consists of: Loan (€20 million) and Grant (€1 million)

Through AFD’s contribution and the wider facility, Ireme Invest is anticipated to:

• Leverage $367 M in private sector investments for climate action

• Create over 367,000 green jobs, with a dedicated window for women-led enterprises

• Avoid or reduce 1.32 million tons of CO₂ emissions

• Support projects that improve livelihoods, enhance resilience, and protect natural ecosystems

This initiative also builds the foundations for Rwanda’s green capital market, paving the way for sustainable finance products such as green and sustainability-linked bonds.