Rwanda needs Rwf 145 billion for biodiversity conservation

By The Inspirer.

The Government of Rwanda has unveiled a policy aimed at investing in environmental and biodiversity conservation projects, known as the National Climate and Nature Finance Strategy (NCNFS).

This strategy highlights the need for between $97.5 million and $107.7 million (approximately RWF 131.6 billion to RWF 145.3 billion) to meet the country’s target of fully conserving its biodiversity by 2030.

The policy, announced on October 17, 2024, aims to promote investment in projects that combat climate change and protect biodiversity to support sustainable development.

Rwanda is one of the countries committed to biodiversity conservation, including efforts to reintroduce extinct wildlife species to national parks and expand conservation areas. The country has also pledged to support the global goal of protecting 30% of the planet’s land and oceans by 2030, with a long-term target of reaching 50% in the following 20 years.

Additionally, Rwanda has committed to maintaining and expanding its forest cover, aiming to have at least 30% of the country covered with forests as part of efforts to combat climate change and protect endangered species.

Other initiatives include building capacity to understand biodiversity and climate change issues through educational materials in schools, international cooperation, and other efforts.

All these initiatives fall under Rwanda’s broader goal of reducing 38% of its greenhouse gas emissions by 2030, which is equivalent to cutting 4.6 million metric tons of emissions.

This plan, which has been in place for four years, requires at least $11 billion in total, with $5.3 billion allocated for addressing the already existing climate change impacts and $5.7 billion earmarked for preventive measures. However, Rwanda is still short of $6.5 billion to meet this goal.

This shortfall is the primary reason for the new strategy, which aims to raise additional funds on top of the $4.5 billion already secured through the Rwanda Green Fund.

Linda Rusagara Mutesi, the State Secretary in charge of public investment in the Ministry of Finance and Economic Planning, stated that the country has made every effort to raise funds for this objective without solely relying on the national budget. She cited an example of the Development Bank of Rwanda (BRD), which recently issued RWF 30 billion worth of green bonds as part of a second phase in a larger plan to raise RWF 150 billion.

Mutesi said, “These funds add to similar previous bonds that were fully sold. We are beginning to see different ways to generate funds that will support government and private sector projects aimed at environmental conservation, with money coming from both international and domestic sources.”

Some of the sectors in need of investment include infrastructure, transportation, and agriculture, as climate change affects all areas.

One of Rwanda’s recent projects is the ‘Green City’ initiative, which aims to build affordable, environmentally friendly housing that will accommodate over 200,000 people. Basil Karimba, the project’s leader, said that after completing the master plan, construction of 2,000 houses on 16 hectares will begin in 2026.

“We are currently looking to partner with private developers to build homes on the site. We’ll also approach banks to find ways to help finance the purchase of these houses. It’s a sustainable project, and this is one of the initiatives we plan to launch soon,” he said.

These houses are expected to be affordable, with 60% to 70% priced below the construction cost, making them accessible to low-income individuals.

Karimba noted that the new policy will help gather the funds needed to implement the Green City project and other related initiatives.

Regarding international financial support, Germany is one of the countries playing a direct role. Since 2022, Rwanda has partnered with Germany through its Development Bank, KfW, to advance environmental projects.

Jochen Saleth, the head of KfW in Rwanda, revealed that Germany has already provided over €360 million and affirmed their continued cooperation with Rwanda.

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