About US$319 million will soon be extended to Rwanda from the International Monetary Fund to help the country cushion itself against external shocks and ensure sustainable growth.
The Managing Director of the International Monetary Fund, Kristalina Georgieva, has been on a working trip in Rwanda where she met with President Paul Kagame at Urugwiro Village, for discussions on ongoing fruitful partnerships.
Under the ‘Resilience and Sustainability Trust’ an International Monetary Fund program, Rwanda will access U$319 million to support climate change initiatives and this was part of the discussion between President Kagame and the IMF chief.
Rwanda will therefore become the first African country to access funds under this initiative.
Last year when Rwanda was announced as the first beneficiary, the Minister of Finance and Economic Planning, Dr. Uzziel Ndagijimana, noted that the Resilience and Sustainability Trust facility will to contribute to Rwanda’s objective of meeting its Rwanda’s Nationally Determined Contributions.
“We hope this Resilience Sustainability Trust facility will be a catalyst to attract additional funding from different sources, be it bilateral and multilateral means, private sector funding or issuance of a green bond,” Minister Ndagijimana said.
The total estimated cost for Rwanda’s identified Nationally Determined Contributions mitigation measures through 2030 is estimated at around 5.7 billion USD, and over U$5.3 billion for adaptation priorities, representing a combined funding requirement of around U$11 billion.
The IMF Mission Chief, Haimanot Teferra noted that “The RSF-supported reforms will help the Rwanda advance measures to integrate climate-related considerations in the design of macroeconomic policies and frameworks, enhance climate-related risk management for financial institutions, and strengthen the disaster risk reduction and management framework.
“While Rwanda has a well-advanced climate strategy, it needs to further strengthen its institutions to deliver and monitor its ambitious climate objectives and to mobilize additional resources,” Ms Haimanot Teferra said.
“Thank you Kristalina Georgieva for your visit and for the innovative IMF Resilience and Sustainability Trust. It is productive and will play a key role in scaling up the work of Rwanda and developing countries towards a sustainable and green economy in our transformational journey,” President Kagame tweeted after their discussions.