The deputy Managing Director of the International Monetary Fund (IMF), Bo Li, is in Rwanda for a one day working visit to, among others, discuss scaling up climate finance for Rwanda in the context of the recently announced Rwanda Resilience Sustainability Fund.
Li's visit comes after Rwanda was named the first African country to access financing under the IMF's Resilience and Sustainability Trust (RST).
It also follows that of the fund's Managing Director, Kristalina Georgieva, who was in Rwanda last month for a three day working visit.
According to the Ministry of Finance and Economic Planning, his visit aims to showcase the joint commitment of international financial institutions (IFIs) to mobilise public and private climate resources as well as to understand how the RSF can be leveraged to attract private climate finance in Rwanda through Rwanda's Green Investment Facility.
Li's visit also aims at accelerating priority green public sector investments, and reducing the country's external indebtedness to free up fiscal space for much-needed green investments.
"Rwanda's RSF approval, the first for a low-income country, is a testament to the country's good climate policies and track record to address climate change," IMF Deputy Managing Director Bo Li said.
On Monday, February 20, a high level meeting bringing together senior government officials and development partners met with the IMF official to discuss how Rwanda can scale up climate finance.
"We look forward to access the Resilience Sustainability Fund and to work with the IMF Management to scale up private finance leveraging of the Resilience Sustainability Trust, in order to mobilize significant private climate finance investments in Rwanda, especially through Rwanda's Green Investment Facility- Ireme Invest," commented Minister of Finance Uzziel Ndagijimana.
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The IMF's Resilience and Sustainability Trust (RST) is a new program that actively supports member countries to build long-term resilience in their economies, with a focus on pandemic preparedness and response to climate change.
The agreement will see Rwanda access up to $319 million in highly concessional financing to advance efforts in building resilience against climate change.
The facility will also contribute to Rwanda's efforts to advance climate policy reforms to help reach its Nationally Determined Contributions (NDC) goal of 38 percent emissions reduction by 2030, and being carbon neutral by 2050.
Rwanda has a climate action plan that will cost US$11 billion (about Rwf11.2 trillion) through 2030.
"The visit by the IMF's Deputy Managing Director, Bo Li, presents a unique opportunity for Rwanda to continue advancing its climate agenda while enhancing its macroeconomic resilience, and for the international community to practically contribute to this effort. Rwanda remains committed to achieving a low-carbon economy, and with the support of the IMF and other IFIs, the country will achieve its ambitious climate goals," reads part of a statement released by the Ministry of Finance.
