Rwanda receives $319 million climate financing loan from IMF

KIGALI - The Rwandan government has received a $ 319 million from the International Monetary Fund (IMF) loan to finance projects tackling climate change projects in the country.

The funding is secured under the Resilience and Sustainability Facility (RSF).

This is an initiative that aims at helping low-income and vulnerable middle-income IMF members address longer-term structural challenges such as climate change with longer-term, low-cost financing.

The development was initially announced in October when the IMF mission in Rwanda concluded its visit.

IMF’s loan is accompanied by a 36-month new Policy Coordination Instrument which is aimed at supporting the Rwandese government to build on the progress in macroeconomic, fiscal, and financial reforms to deliver more inclusive, resilient, and sustainable growth.

The RSF program will also include the facilitation of green public investment, creating further fiscal space, mitigating financial risks, and strengthening public debt dynamics and prospective balance-of-payments stability.

According to Bo Li, Deputy Managing Director and Acting Chair of the IMF Board.

“Rwanda has become the first African and low-income country to benefit from the Resilience and Sustainability Facility (RSF), a recognition of the country’s commitment to strengthen its resilience to climate change.”

Uzziel Ndagijimana, Rwanda’s finance minister, “This IMF support is a catalytic fund which is expected to trigger more financing from other institutions including the private sector. We are working well with our development partners in this area but also on private financing such as green bonds.”

Rwanda has a climate action plan that will cost US$11 billion through 2030. The cost for mitigation measures is estimated at around US$5.7 billion while over US$5.3 billion will go to adaptation priorities.

GAROWE ONLINE