The Republic of Rwanda needed new financing options to transition from a low-income to a middle-income economy by 2035. Despite achieving 7.6% economic growth in early 2023, Rwanda’s Ministry of Finance and Economic Planning needed diversified funding sources so it could finance its Vision 2050 and National Strategy for transformation goals for economic development.

Rwanda’s economic strategy is focused on sustainability and climate resilience. The government required substantial capital investment for renewable energy, efficient transportation and climate-smart agriculture projects that would both protect against environmental vulnerabilities and accelerate economic development. These initiatives required long-term financing that traditional funding sources could not adequately support.

As the country continues its gradual transition from aid-dependent concessional financing to market-based sources, the ministry prioritises the diversification of funding partners beyond traditional aid channels, while ensuring that the terms of financing remain consistent with debt sustainability and budgetary objectives.

Sustainability initiatives often take longer to produce a return on investment, making them harder to finance.

Rwanda also faced time pressure. The government needed funding fast to keep development projects moving forward while still meeting the strict ESG standards required by international investors.