According to a statement released by the Ministry of Finance and Economic Planning (MINECOFIN), on Thursday, August 22, 2024, the loan, secured on semi-concessional terms, will be directed towards various projects, including urban economic development in two secondary cities and one district town, Government-funded modern irrigation (GFI), and the Sustainable Agriculture Intensification and Food Security Project (SAIP).
The ministry noted that these initiatives align with Rwanda's Environmental, Social, and Governance (ESG) framework, reflecting the country's unwavering commitment to building a sustainable and resilient future.
The successful acquisition of this funding was made possible by a positive second-party opinion from S&P Global Ratings, a credit rating agency on Rwanda's ESG framework.
Lauding the approval, the ministry said, 'This endorsement underscores Rwanda's dedication to responsible governance and sustainable development, further enhancing its credibility as a borrower committed to upholding ESG principles.'
Rwanda has made significant strides in developing a robust ESG framework aimed at attracting investments and achieving sustainable development goals. This innovative approach aligns with the country's long-term vision, particularly given the limited concessional financing available from traditional development partners.
With an ambitious goal of reaching upper middle-income status by 2035 and becoming a high-income country by 2050, Rwanda understands the importance of securing sustainable financing to realize this vision.
The ESG framework serves as a comprehensive set of standards, assessing Rwanda's management of environmental impact, social policies, and governance practices. It offers valuable insights for investors, policymakers, and international organizations into Rwanda's commitment to sustainability, ethical business practices, social responsibility, risk management, innovation, competitiveness, and long-term stability.
By strengthening its ESG framework, Rwanda aims to create new opportunities for investment, bolster its reputation as a nation dedicated to sustainability and responsible business practices, and enhance its overall competitiveness and long-term sustainability.
IGIHE
