Ireme Invest – Paving the Way for Private Sector Green Growth in Rwanda
In November 2022, President Paul Kagame launched Ireme Invest – Rwanda’s green investment facility. Powered by the Rwanda Green Fund and the Development Bank of Rwanda, the facility marks a significant milestone in putting the private sector at the heart of Rwanda’s bold climate action targets and journey to becoming a carbon neutral economy.
Ireme Invest aims to address market gaps in the financing of green and climate resilient investment to promote sustainable and inclusive economic growth led by Rwanda’s private sector. The facility’s vision is to enable private sector-led green investments to access finance through a world-class and vibrant green investment facility.
Ireme Invest offers a range of tailored financial products and services to fast-track private sector-led green investment. It has two facilities that work together in an integrated fashion, including a Project Preparation Facility implemented by the Rwanda Green Fund and a Credit Facility implemented by the Development Bank of Rwanda (BRD).
The Project Preparation Facility supports private sector projects from ideation to bankability through incubation and acceleration and creating a sustainable project pipeline for the Credit Facility, local financial institutions, and investors. The Project Preparation Facility will offer grants, recoverable grants and equity to eligible projects and companies to support green business development.
The Credit Facility will avail loans with favourable terms to small and medium sized enterprises (SMEs) either directly through BRD, or through their own financial institution as BRD will provide lending to other financial institutions to incentivise them to co-invest in green and climate resilient projects. In the future, the credit facility may also provide leasing products to SMEs.
The Power of Partnerships
Following the successful development of the facility with support from the World Bank and the United Nations Development Programme, Ireme Invest was launched at COP27 in Egypt with founding partners including the European Investment Bank, Agence Française de Développement, Government of Sweden, Foreign, Commonwealth and Development Office of the Government of the United Kingdom, Global Climate Partnership Fund, and the Development Bank of Rwanda.
Since then, Ireme Invest has leveraged the International Monetary Fund (IMF)’s Resilience and Sustainability Trust through the creation of the Rwanda Climate Finance Partnership to mobilise additional capitalisation commitments from Agence Française de Développement (AFD), European Investment Bank (EIB), Cassa Depositi e Prestiti (CDP), and the International Finance Corporation (IFC) as well as the Government of Denmark and the Government of Germany.
Initial Capitalisation Commitments
To date, up to 200 million USD in initial capitalisation commitments have been made to Ireme Invest from a range of partners.
Important Guidelines Developed
Ireme Invest has continued to lay the groundwork for its operations since launching. This includes the development of essential frameworks such as the facility’s Eligibility Criteria. This foundational document will guide Ireme Invest’s strategic operations, ensuring clarity, consistency, and effective implementation of its objectives. View the criteria here.
Ireme Invest is designed to support Rwanda to achieve its climate and development goals as well as create green jobs by investing in sustainable agriculture, renewable energy, e-mobility, waste and the circular economy. In its inaugural investment round, Ireme Invest will provide funding and technical support for businesses in the circular economy and waste sectors.
- Ireme Invest Circular Economy Programme
Ireme Invest’s first call for applications under the Project Preparation Facility will be open to companies working to build a more circular world and better manage Rwanda’s waste.
Those eligible for the programme include entrepreneurs or businesses operating in Rwanda’s waste and circular economy sector. Up to 30 promising entrepreneurs and businesses will be selected for this exciting opportunity. Learn more here.
Ireme Invest will be seeking applications from businesses operating in other priority sectors in the coming months.
- Follow Ireme Invest on social media for more updates – @IremeInvest.