IFC, Rwanda sign five deals to support private sector
Monday, May 20, 2024
Jeanine Munyeshuli, the Minister of State for Public Investments and Resource Mobilization, and Makhtar Diop, the Managing Director of the International Finance Corporation, signing an agreement in Kigali on May 16. Courtesy

The 2024 Africa CEO Forum in Kigali concluded on May 17 with the International Finance Corporation (IFC) and the Government of Rwanda signing five major partnerships to support the country to strengthen its economy.

The five deals aim to create jobs by attracting increased private sector engagement across climate-smart agriculture, green city development, and its corporate governance and privatization programme.

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The agreements include a partnership with the Ministry of Finance and Economic Planning to support the government's state-owned enterprise (SOE) reform and privatization programme. IFC plans to provide technical assistance to the Ministry, including training to its staff, and reform advisory on SOE corporate governance and asset monetization.

"Today's partnership underscores the Government of Rwanda's commitment to fostering a thriving private sector, creating quality jobs, strengthening economic fundamentals and climate resilience, along with the best practices in terms of governance," said Jeanine Munyeshuli, the Minister of State for Public Investments and Resource Mobilization.

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Another agreement is an advisory partnership with the Government to support the growth of the Rwanda Green Fund, the financing vehicle for public and private investments to accelerate and provide growth capital to high-impact green ventures.

IFC will help the fund to identify a pipeline of bankable projects while also providing reform recommendations to unlock private investment into climate-smart agriculture and sustainable cities.

Teddy Mugabo, CEO of the Rwanda Green Fund, signing the agreement on the sidelines of Africa CEO Forum in Kigali on May 16. Courtesy

Teddy Mugabo, the CEO of the Rwanda Green Fund, said the support was crucial for Rwanda's sustainable development goals.

"Together, we will develop long-term investment in climate-smart agriculture and sustainable cities," she said.

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IFC also signed an advisory partnership with the Capital Markets Authority (CMA) to support the integration of environmental, social and governance (ESG) standards into the capital markets industry codes on conduct and regulations.

This is expected to support Rwanda to position itself competitively in the regional market and bring enhanced opportunities for regional and international investment.

A partnership agreement was also signed with the Rwanda Association of Professional Environmental Practitioners to deepen the knowledge and understanding of ESG consultants. This is expected to assist businesses in Rwanda to adopt ESG practices including IFC performance standards and corporate governance methodology, equator principles, and the relevant European Union requirements.

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IFC also entered partnership with Rwanda Bankers Association (RBA) to support banks in the country to improve their ESG standards and practices by developing related guidelines for the market and to support implementation including training of banks on ESG risk management.

Makhtar Diop, the IFC Managing Director, described Rwanda as a leader in the region driving green and sustainable growth. IFC has a track record of supporting Rwanda's ambitious growth and development plan,” he said, adding that the partnerships will strengthen collaboration.

Diop indicated that the partnerships would deepen the private sector's central role in driving job creation and opportunities for the country.

IFC is currently supporting Rwanda to develop a new life sciences park as the country solidifies itself as a leader in Africa's vaccine and pharmaceutical development.

The organisation is also working with its partners to strengthen the country's grain market, water infrastructure and lending to SMEs.