COP28: Rwanda: EIB and Bank of Kigali outline EUR 100 million plan to enable farmers adapt to climate change
Summary
BK has paved the way for commercial banks in Rwanda in incorporating green financing, said CEO Rwanda Green Fund, Teddy Mugabo.Under the new initiative, expected to be launched early next year, farmers, agribusiness companies and agricultural cooperatives will be able to access EUR 100 million of new financing, mobilised through a partnership between the EIB and the Bank of Kigali. Access to finance is vital for building resilience and ensuring the survival of livelihoods impacted by the climate emergency. Over recent months experts from the Bank of Kigali and the EIB have developed this comprehensive private sector financing scheme that will accelerate climate change adaptation, foster sustainable development and enhance economic opportunities for women, said Dr. Diane Karusisi, CEO of Bank of Kigali.Increasing access to finance for smallholders and agribusiness across Rwanda is crucial for climate resilience and enables millions of farming families to adopt sustainable agricultural practices that mitigate the impact of climate change. Most parts of Rwanda are projected to experience an increase in more intense rainfalls, which will increase the intensity and frequency of floods and landslides.The new climate finance scheme will support investment to enhance agricultural productivity, enabling smallholders to invest in modern farming technologies and techniques, increasing crop yields and adapting to changing climate conditions.New agricultural investment will also help to ensure that smallholders can withstand extreme weather and climate-related disruptions, contributing to a more stable and secure food supply.Improved access to finance will also help small holders and agribusiness to diversify income sources, strengthening resilience against climate-induced shocks and creating more sustainable livelihoods.Agriculture is a key part of Rwandas economy, contributing to over 60% of total employment. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions, and civil society.