Sustainable Economic Transformation and Sustainable Finance Global Project: Rwanda

Table of contents

Sustainable Finance in Rwanda
Our Activities in Rwanda
Products

Our activities in Rwanda are part of the Global Project Sustainable Economic Transformation and Sustainable Finance.

Sustainable Finance in Rwanda

Rwanda has taken important steps toward advancing sustainable finance, most notably through frameworks such as the Rwanda Sustainable Finance Roadmap. This Roadmap outlines the national sustainable finance strategy, analyses existing gaps and defines concrete action plans for the sustainable transformation of the Rwandan financial system. While progress in establishing the necessary market conditions has been uneven, important policy foundations are already in place. However, greater clarity and coverage – for example through a national taxonomy to classify sustainable activities – would help ensure more consistent application across economic sectors.

In parallel, capacities to develop bankable sustainable projects and expanding the pipeline of viable proposals, which could further stimulate sustainable growth, are only slowly building up. Moreover, through initiatives such as the central bank’s (BNR) (link: bnr.rw/documents/Regulatoryframework-_A_document_of_guidelines.pdf text: Guideline on Climate-related and Environmental Financial Risks Management, Rwanda has taken initial steps to strengthen its sustainability disclosure framework. However, further efforts are needed to expand these requirements and to develop a comprehensive national plan for sustainability reporting. Lastly, continuing to build Rwanda’s track record in structuring public-private partnerships would help boost investor confidence.

Taken together, these factors suggest that, despite Rwanda’s strong commitment and policy advances, sustainable finance remains concentrated in select sectors. With targeted measures, however, there is considerable potential to broaden the market and attract a more diverse range of institutional investors.

Our Activities in Rwanda

Development of the Rwanda Green Taxonomy to define sustainable economic activities and prevent greenwashing.

Trainings for private companies as well as regulatory bodies and policymakers to raise awareness on the taxonomy, capacitate them on the taxonomy development process, the main principles of a taxonomy and taxonomy implementation.
Setting up technical working groups to define sustainable activities in line with international practices and the local context.
Advisory of decision-making bodies throughout the taxonomy development process.
Support in the consultation process for the taxonomy.

Develop a national roadmap for sustainability disclosures to promote transparency and accountability in financial and non-financial firms.

Interviews with Rwandan companies and regulators to assess the state of sustainability reporting and market readiness for the adoption of ISSB Standards.
Advisory of a newly set up steering committee in defining a phased adoption pathway commensurate with national priorities and market readiness.
Development of guidance materials for financial and non-financial firms on the application of the ISSB Standards.
Capacity-building of financial institutions on the use of the guidance materials and the implementation of the ISSB Standards.
Support in the consultation of the national adoption roadmap.

Review of the Capital Market Authority’s standard for sustainability-related bonds (GSS+) to ensure alignment with the green taxonomy.