Equity Bank Rwanda, on June 4, 2024, unveiled ‘Equi-Green Loan’, a green finance scheme with a range of products.

The diverse green products developed by Equity Bank Rwanda include solar systems, e-mobility, climate-smart agriculture, green buildings, clean cooking solutions, afforestation, and water and sanitation products, waste water treatment, carbon credit monetization, recycling and waste management, biofuels, to embrace sustainable living.

"The result of the green finance products will be climate smart projects and businesses,” said Equity Bank Rwanda Plc Managing Director, Hannington Namara.

On Tuesday, June 4, Equity Bank and partners also flagged off hybrid and electric cars recently acquired by the bank as part of their commitment to sustainable living.

Namara said the range of launched green finance products will respond to climate risks for sustainable living.

"Climate risks will be with us. We have to create a coalition that helps us deal with those risks. Those risks are in different places. Some are in agriculture. We recognise partners in agriculture to make sure interaction between agriculture space and climate becomes climate smart, or give solutions in a sustainable way to deal with climate risks,” he said.

Equity Bank has partnered with USAID-funded Feed the Future Rwanda Hinga Wunguke Activity to launch a unique green finance product designed to enable farmers, agribusinesses and other communities access and adopt clean energy technologies and promote environmental conservation.

"We will continue to innovate and look at what can be done in other sectors. By collaborating with our partners, we have found effective ways to bring these solutions to life.

"Our range of green products demonstrates our commitment to sustainability and our dedication to making a significant impact not just locally, but across the continent. We will continue to push the boundaries of innovation, ensuring that our contributions to the world are both meaningful and impactful,” he said.

He said that Equity Bank is looking to increase green loans so that they take over 20 per cent of the total loans provided by the bank.

Alice Kirezi, Equity Bank's Head of Investment and Social Impact, said the range of green products were developed after a scoping study done by Equity Bank Rwanda Plc, assessing risks associated with climate change and the gaps in WASH and energy sectors.

She said that by 2030, Equity Bank seeks to support 60,000 households to access WASH-related solutions and plant 70,000 agro-forestry and fruit trees.

100,000 eco-friendly businesses to get finance

The bank also seeks to provide access to finance to 100,000 environmentally friendly businesses in ecotourism, renewable energy and sustainable agriculture, Kirezi said.

She added that they will help 500 schools to embrace clean cooking solutions.

Under the 2030 target, the bank aims to create 10,000 green jobs through capacity-building and access to finance.

Daniel Gies, Chief of Party at USAID-funded Feed the Future Rwanda Hinga Wunguke which is working with Equity Bank to enhance access to finance for farmers, said: "I commend Equity Bank team for their outstanding work in tackling climate change as we focus on climate adaptation for farmers, delivering green solutions and shaping a sustainable future. Equity Bank's objectives align closely with our mission to combat climate change. Together, we are committed to assisting farmers in adapting to and mitigating the effects of climate change.”

The Feed the Future Rwanda Hinga Wunguke Activity (Hinga Wunguke) is a five-year USAID-funded $28 million initiative that aims to increase incomes and improve nutritional outcomes by sustainably increasing agricultural productivity and strengthening domestic consumption and markets for high-value and nutritious agricultural products.

Hinga Wunguke is designed with four complementary objectives: agriculture productivity sustainably increased, farmers’ and agribusinesses’ access to finance increased, producer market outcomes improved, and the enabling environment to foster market driven agriculture strengthened.

Daniel Gies reiterated that the Equi-Green loan by Equity Bank will help farmers and businesses adapt and mitigate the effects of climate change in order to improve productivity, access markets and generate more bankable income.

Through this initiative, farmers and other businesses will be able to purchase solar lighting systems, biomass systems, irrigation systems, hybrid/electric cars, and water storage tanks through simplified and affordable loan products ranging from Rwf500,000 to Rwf1 billion.

"Working with financial institutions to increase the level of financial flows to farmers to adopt climate-smart farming practices and other sustainable development priorities is important, and adds significant value to our joint effort to address climate change adaptation and mitigation," he observed.

The initiative was based on a recent survey by Equity Bank on the eco-friendly needs of different communities across Rwanda.

Claudine Uwera, the Minister of State for the Environment in the Ministry of Environment, said: "Equity Bank's commitment to sustainability and environmental transformation is commendable.

"Collaboration is vital for Rwanda's climate goals, necessitating partnerships across public, private, and non-profit sectors. Alone, we can't drive this change, but together, sustainable development is within reach. Together, we are making strides towards a sustainable and green future for Rwanda. Rwanda has ambition to become a climate resilient and carbon neutral economy by 2050.”

She said Rwanda needs $11 billion to reduce carbon emissions by 38 per cent in 2030.

"Engaging the private sector such as Equity Bank is critical to mobilise financial resources to achieve the country's goals. We commend the efforts of Equity Bank with its programme on climate change. We need access to finance that is affordable," she said.

Equity Bank Rwanda Plc began its operations in 2011 and is registered as a commercial bank by the National Bank of Rwanda.

The Bank has its Head Office located in Kigali, with a footprint of 46 branches and is supported by 4,062 agents, 1663 POS merchants and a network of 61 ATMs, serving over 1.348 million customers.

Equity Bank Rwanda Plc is a subsidiary of Equity Group Holdings Plc, a financial services company engaged in the provision of investment banking, custodial, insurance agency, philanthropy, consulting and infrastructure services.