The European Investment Bank (EIB) and the Bank of Kigali, in a landmark collaboration announced at COP28 in Dubai, are spearheading this pioneering effort, marking the largest-ever EIB support for private sector investment in Rwanda.
This sustainable agriculture financing initiative, anticipated to launch early next year, seeks to alleviate long standing credit constraints hindering private sector agriculture investment in Rwanda. The scheme will provide dedicated, long-term loans, fostering climate resilience and empowering farmers, agribusinesses, and agricultural cooperatives.
The partnership, facilitated by the EIB and the Bank of Kigali, with support from the European Union, aspires to unlock EUR 100 million in climate investments. This includes improved financial accessibility for businesses owned by women, addressing the significant gender gap in agricultural loan access.
Rwanda, having experienced a temperature rise of 1.4 degrees Celsius since 1970—exceeding the global average—faces intensified rainfalls that contribute to floods and landslides. The climate finance scheme seeks to enhance agricultural productivity, enabling smallholders to adopt modern farming technologies, increase crop yields, and adapt to changing climate conditions. With agriculture contributing over 60% to Rwanda’s economy, the initiative also aims to stabilize the food supply by fortifying smallholders against climate-induced disruptions.
The financial collaboration between the EIB and Bank of Kigali, supported by the European Union, exemplifies how committed partnerships can mitigate the impact of the climate emergency and uplift vulnerable communities. The initiative not only addresses the broader economic stability of agribusinesses in Rwanda but also aligns with the country’s ambitious climate action plan, urging global participation in achieving a 38% reduction in carbon emissions by 2030.