RDB advises banks to join environmental fight

Rwanda Development Board-RDB’s department of Environmental Impact Assessment (EIA) has advised commercial banks to “go an extra mile” and find out whether projects being implemented by investors are environmental friendly before advancing loans. The call was made during a one-day meeting between RDB and members of the banking and private sector, to seek better ways of harmonizing EIA requirements with the banking sector prior to giving out loans. The meeting was in line with mitigating the negative impact of investors on the environment. Theobald Mashinga, the Director of Environmental Compliance awareness and Cleaner production, pointed out that banks need to understand the importance of the EIA certificate. He said they stand to loose out in form of loans if for instance the projects get dismantled as a result of not following environmental compliance measures. “Banks are pertinent stakeholders in this, if they are not careful to scrutinize and see if their client’s project complies with the EIA requirements, they also risk losing their capital,” underscored Mashinga The development comes at a time when RDB’s environment department and Rwanda Environmental Management Authority (REMA) is at loggerheads with various business operators and industries that have established operations in areas like swamps and other natural water ways. Emmanuel Karuranga from the Rwanda Development Bank said his bank embraces this caution as a way of safeguarding their clients. “We are now going to be putting a considerable insight into how the big projects might impact the environment, as opposed to only looking at their economic benefits.” Ends