Rwanda and Grand Duchy of Luxembourg has launched a €9.3 million (approx. Rwf15.4 billion) project to support the growth of Kigali International Financial Centre (KIFC).
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The project dubbed "Support to the Development of KIFC (RWA/024)” aims to provide additional support to positioning Kigali as a leading financial hub in Africa. The launch of the partnership took place on the margin of the visit of Luxembourg’s Prime Minister and Minister of Foreign Affairs, Xavier Bettel, in Rwanda.
Spanning over five years, the project is expected to focus on increasing the number of certified and internationally accredited professionals through the operationalization of the Financial Sector Skills Council, attracting more private equity and venture capital funds and kicking off the Green Exchange Window on the Rwanda Stock Exchange (RSE).
It also involves investments in bankable projects of MSMEs and supporting the development of better business service provision and access to innovative financial products, as well as creating an enabling regulatory environment for setting up a FinTech hub.
Finance Minister Yusuf Murangwa said that Luxembourg has significantly supported the government of Rwanda in various development projects.
"The backing for the development of KIFC is a significant milestone in collaboration. It not only supports Rwanda in establishing itself as a leading financial hub in Africa but also strengthens our financial ecosystem, driving economic growth and positively impacting lives of Rwandans.”
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The development follows an agreement signed between both countries in 2021 for capacity building and talent development; development of sustainable finance in Rwanda; enabling a fintech ecosystem in Rwanda; and setting up a marketplace for impact investing in Rwanda.
Luxembourg Premier Bettel said: "Promoting access to finance for all is a priority for Luxembourg’s Development Cooperation. Providing people with responsible financial services means giving them the right tools to become more autonomous and resilient in the face of external shocks.”
Nick Barigye, the CEO of Rwanda Finance Limited, a local company mandated to promote KIFC, reiterated that this is yet another step towards establishing Rwanda as a preferred hub for international investments and cross-border trade within Africa.
"This represents a great opportunity for knowledge exchange and institutional development.”
During the visit of the Luxembourg delegation to Rwanda, both parties also signed a grant agreement totaling €12 million (approximately Rwf16.7 billion) to combat deforestation in Western and Eastern provinces.
They also launched a €5 million (approximately Rwf7 billion) project to enhance digital skills to improve the quality and accessibility of Technical and Vocational Education and Training (TVET) education across the country by expanding the use of the blended learning approach.