Press Release: June 26, 2019
The Coalition for Green Capital (CGC) today announced it has been awarded a contract to develop a new fund to expand Rwanda’s climate finance capacity. The fund will be designed to complement existing programs available through the Rwanda Green Fund (FONERWA), with a unique and specific focus on unlocking and expanding private investment in Rwanda’s green sectors. For this reason, the fund is referred to as a Catalytic Green Investment Fund. The catalytic approach uses public investment to attract private investment, by reducing risk and addressing other market barriers.
The Rwanda office of the United Nations Development Programme (UNDP) is supporting this effort, and has awarded the contract to CGC through the Rwanda Green Fund, an agency of the Rwandan Ministry of the Environment. Interest in climate finance solutions is growing throughout Africa, and with this project, Rwanda offers a model relevant to other African countries.
“We are delighted to be working with the Coalition for Green Capital to develop the Catalytic Green Investment Fund, which will boost private sector investment in Rwanda’s green economy. This new mechanism joins a number of financial tools developed by the Rwanda Green Fund to advance green growth and we are confident it will support Rwanda in becoming a developed and low carbon nation,” says Hubert Ruzibiza, CEO of the Rwanda Green Fund.
CGC has a proven track record of planning and implementing similar funds. Last year, CGC partnered with the Development Bank of Southern Africa to launch a new Climate Finance Facility, which included the first-ever Green Climate Fund loan to an institution based on the Green Bank model. In the United States, these funds are commonly referred to as Green Banks, and on average have more than tripled the impact of each dollar of public investment.
To lead the project, CGC has hired Ms. Sidonie Gwet, who is based in Kigali and brings extensive experience in the banking industries of Central Africa, West Africa, and Europe. Her work will include engagement with local stakeholders and experts to design the structure of the fund, identify major market barriers, and characterize a projected project pipeline and the most promising sectors for investment.
Sidonie Gwet, Rwanda Project Lead at CGC, said: “Developing and implementing a fund of this nature requires an in-depth understanding of the local market. I expect to work closely with local market participants to arrive at a design that will be effective at mobilizing the full power of relevant private investors.”
Jeff Schub, Executive Director at CGC, said: “Massive mobilization of capital will be needed to address the challenges of global climate change. CGC is inspired by Rwanda’s leadership and excited to be working with FONERWA to develop innovative financial frameworks for climate investment.”
The Coalition for Green Capital (CGC) is a non-profit organization focused on accelerating the growth of clean energy markets through the creation of Green Banks.
CGC offers a unique and proven capacity as the leading creator, advocate, and expert on Green Banks since 2009 and works directly to support the formation of Green Banks with governmental and civil society partners, and provide on-going consulting and guidance to operating Green Banks. For more information visit coalitionforgreencapital.com/.
Nora Vogel (United States)
Director of Communications
Sidonie Gwet (Rwanda)
Rwanda Project Lead