{"id":67915,"date":"2024-03-16T14:23:52","date_gmt":"2024-03-16T14:23:52","guid":{"rendered":"https:\/\/www.africa-press.net\/rwanda\/all-news\/european-investment-bank-bk-ink-partnership-in-agriculture-finance"},"modified":"2024-03-16T14:36:33","modified_gmt":"2024-03-16T14:36:33","slug":"european-investment-bank-bk-ink-partnership-in-agriculture-finance","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/rwanda\/economy\/european-investment-bank-bk-ink-partnership-in-agriculture-finance","title":{"rendered":"European Investment Bank, BK ink partnership in agriculture finance"},"content":{"rendered":"

Africa-Press – Rwanda. <\/strong><\/span>The European Investment Bank (EIB Global) and the Bank of Kigali (BK) on March 14, inked a ground-breaking \u20ac100 million (approx. Rwf140 billion) sustainable agriculture financing partnership, to bolster farmers and agricultural enterprises across Rwanda, fortifying them against the economic, social, and business ramifications of climate change.<\/p>\n

As part of the European Union\u2019s Global Gateway partnership, this initiative complements the Team Europe effort, \u201cInvesting in Sustainable and Inclusive Agricultural Transformation\u201d in Rwanda, expanding European assistance to \u20ac384 million.<\/p>\n

Diane Karusisi, CEO of BK, gives her remarks at the event.<\/p>\n

Diane Karusisi, CEO of BK, said, \u201cThis partnership marks a significant stride in advancing Rwanda\u2019s agricultural sustainability and underscores BK\u2019s commitment to fostering economic resilience against climate change.\u201d<\/p>\n

Karusisi added that through this collaboration, they are boosting transformative change, ensuring a climate-resilient future not only for Rwanda, but beyond.<\/p>\n

\u201cIt\u2019s a commitment that exceeds mere financial backing, signalling our dedication to green growth,\u201d she added.<\/p>\n

The signed investment represents the largest ever EIB support for the private sector in Rwanda, providing a substantial lift to smallholders, businesses, and enterprises reliant on climate-vulnerable agriculture across the nation.<\/p>\n

(L-R) Belen Calvo Uyarra, Ambassador of the Delegation of European Union to Rwanda, Thomas Ostros, European Investment Bank (EIB Global) Vice President and Dianne Karusisi , Chief Executive Officer of Bank of Kigali and Hubert Asiimwe, Head of the financial sector development department at the Ministry of Finance sign the agreement during the ceremony in Kigali.<\/p>\n

Thomas Ostros, EIB Vice President, highlighted, \u201cThe agreement we\u2019ve signed today will further amplify the impact of climate-related investment by developing a green taxonomy for the financial sector, facilitating the scaling up of green investment aligned with the objectives of the 2015 Paris Climate Agreement.\u201d<\/p>\n

He further pointed out that the bank will mobilise climate finance by addressing barriers hindering engagement by commercial banks, enabling them better to embrace climate finance best practices across all activities, catalysing new funding for green projects, and improving assessment, monitoring, and reporting on climate-related risks.<\/p>\n

Ostros underscored how the \u20ac100 million investment partnership with BK exemplifies how agricultural financing directly contributes to achieving Sustainable Development Goals (SDGs).<\/p>\n

Thomas Ostros, vice president of the European Investment Bank (EIB), speaks at the signing ceremony between EIB Global and the Bank of Kigali (BK) in Kigali on March 14<\/p>\n

\u201cThe EIB is collaborating with partners to expand the agri-value chain lending pipeline in Rwanda, ensuring greater food security, improved incomes for farmers, women\u2019s empowerment, and sustainable job creation. This aligns with the EIB\u2019s commitment to financing innovative and impactful solutions for a greener, more efficient, climate-resilient, and sustainable agriculture system in Sub-Saharan Africa,\u201d he said.<\/p>\n

The initiative aims to address long-standing credit constraints hampering private-sector agriculture investment by facilitating access to dedicated, long-term loans. It will be implemented in close collaboration with the European Union, which supports agriculture programmes in Rwanda, including value chain development, notably in horticulture and aquaculture.<\/p>\n

Aligned with the COP28 Action Agenda, it brings food and agriculture systems to the forefront of climate action.<\/p>\n

(L-R) Belen Calvo Uyarra, Ambassador of the Delegation of European Union to Rwanda, Thomas Ostros, European Investment Bank (EIB Global) Vice President and Dianne Karusisi , Chief Executive Officer of Bank of Kigali and Hubert Asiimwe, Head of the financial sector development department at the Ministry of Finance sign the agreement during the ceremony in Kigali.<\/p>\n

Belen Calvo Uyarra, Ambassador of the Delegation of European Union to Rwanda, remarked, \u201cThis new partnership between the EIB and BK, backed by the European Union, demonstrates how committed financial partners can bridge gaps by supporting private sector development in the agriculture sector\u2014one of the drivers of the country\u2019s economy,\u201d she said.<\/p>\n

Moreover, she highlighted that it also facilitates access to markets and finance for agri-food SMEs and smallholder producers while focusing on tackling the impact of climate emergency and supporting vulnerable communities threatened by climate change.<\/p>\n

At the signing ceremony, EIB and BK announced plans to provide technical assistance as part of the EIB\u2019s broader support for greening Rwanda\u2019s financial system. Leveraging its expertise as the EU climate bank, the EIB will collaborate with the BK to enhance its approach to climate risk management and the financing of green projects.<\/p>\n

Moreover, the initiative will enhance the capacity to finance green projects by local financial institutions. This will mark the second technical assistance project to be implemented in Africa under the EIB\u2019s Greening Financial Systems Programme, financed by Germany through the EIB\u2019s International Climate Initiative Fund.<\/p>\n

(L-R) Belen Calvo Uyarra, Ambassador of the Delegation of European Union to Rwanda, Thomas Ostros, European Investment Bank (EIB Global) Vice President and Dianne Karusisi , Chief Executive Officer of Bank of Kigali and Hubert Asiimwe, Head of the financial sector development department at the Ministry of Finance during the signing ceremony in Kigali.<\/p>\n

Hubert Asiimwe, Head of the financial sector development department at the Ministry of Finance, highlighted Rwanda\u2019s longstanding partnership with the EIB, spanning various sectors such as infrastructure, energy, and health.<\/p>\n

Asiimwe also mentioned ongoing and upcoming projects, including volcano community resilience projects, emphasising the current focus on greening the agriculture sector to ensure sustainable agriculture and environmental preservation.<\/p>\n

Over the last decade, the EIB, as the world\u2019s leading climate financier, has bolstered the climate finance technical skills of over 40,000 African financial professionals. Additionally, it has provided more than \u20ac225 million (approx. Rwf315 billion) for private sector investment across Rwanda in partnership with Rwandan businesses, banks, financial partners, and microfinance institutions.<\/p>\n

Officials from the European Investment Bank and Bank of Kigali pose for a group photo at the signing ceremony in Kigali on Wednesday, March 14.<\/p>\n

aufitiwabo@newtimesrwanda.com<\/p>\n\r\n