Rwanda and Germany Sign Rwf30B Grant Agreement to Advance Climate Action

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Rwanda has signed a landmark grant agreement with the German Development Bank KfW, representing the German Federal Government, to provide EUR 20.97 million (approximately Frw 30 billion) for the “Green and Gender-Sensitive Public Spaces” project. This initiative seeks to strengthen Rwanda’s urban resilience against climate change while promoting biodiversity and gender inclusivity.

The signing ceremony, held at the Ministry of Finance and Economic Planning, brought together key figures, including Hon. Yusuf Murangwa, Minister of Finance and Economic Planning; Juliet Kabera, Director General of the Rwanda Environment Management Authority (REMA); and representatives from the German embassy and KfW Development Bank.

The “Green and Gender-Sensitive Public Spaces” project will use nature-based solutions, such as tree planting and soil unsealing, to address urban challenges caused by climate change. These measures aim to combat landslides, mitigate urban heat retention, and improve the overall quality of life for city residents, particularly women. It will also enhance urban biodiversity in selected secondary cities, with REMA overseeing its implementation.

This agreement follows a previous grant of EUR 20 million, also provided by KfW, aimed at reforming green financing and investments in Rwanda. Both grants form part of the Rwandan-German Climate and Development Partnership, established in 2022, which supports Rwanda’s national climate adaptation and mitigation targets.

Rwanda has also secured additional funding to accelerate investments in climate action and nature conservation. Through budgetary support, this funding will help improve policies and regulations, including the implementation of the newly launched Climate and Nature Finance Strategy (CNFS).

Minister Murangwa expressed optimism about the grant’s potential to drive transformative climate resilience projects. “Given Rwanda’s vulnerability to climate change, the Government has set ambitious targets in NST-2 to enhance resilience. Mobilizing sufficient resources to achieve these targets will be a top priority in the near future. Our partnership with Germany spans various sectors, and our joint efforts to combat climate change remain a key focus,” he said.

German Ambassador to Rwanda, Heike Uta Dettmann, highlighted the strength of Rwandan-German cooperation, which has grown significantly since the Climate and Development Partnership’s inception. “This partnership currently exceeds EUR 260 million and is being implemented alongside our Rwandan partners through KfW and GIZ. Today’s signing of implementation arrangements for KfW-funded projects totaling over EUR 40 million further demonstrates the strong commitment of Germany and Rwanda to combat the adverse effects of climate change through concrete actions,” Ambassador Dettmann stated.

This renewed collaboration emphasizes the importance of international partnerships in addressing global climate challenges while advancing Rwanda’s ambitious climate agenda. As the world grapples with the escalating effects of climate change, projects like “Green and Gender-Sensitive Public Spaces” provide a blueprint for sustainable urban development and resilience.

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