Rwanda steps up financing agenda as banks go green

Rwanda is making strides in attracting green finance investments to expand its financial ecosystem, positioning itself as a hub for international collaboration and sustainable development. The UK Rwanda Business Forum has provided a platform for Rwanda to showcase various sectors like agriculture, mining, manufacturing, and financial services, fostering partnerships with UK investors. CNBC Africa's Abi Agena sat down with BPR Bank Managing Director, Patience Mutesi, to delve into the opportunities and challenges facing the financial sector in Rwanda. As part of the efforts to connect with international financing, the financial sector in Rwanda, led by institutions like BPR, is keen on leveraging partnerships with UK investors. Patience highlighted agriculture as a key area for collaboration, noting the untapped potential in the sector. The trade between Rwanda and the UK has been on the rise, signaling more opportunities for growth and investment in agriculture, as well as other sectors like finance, mining, and manufacturing. Green financing emerged as a crucial focus during the discussions, with a growing global push towards sustainability. BPR, as part of the KCB Group awarded as the most sustainable bank in Kenya and the region, is strategically retooling to attract green financing. Developing a robust strategy for green financing, partnering with institutions like the European Investment Bank (EIB), and setting specific targets to become a 'green bank' are part of BPR's initiatives to align with global sustainability efforts. Despite external challenges such as the Ukraine war and macroeconomic fluctuations impacting trade, the financial sector in Rwanda has shown resilience and robust growth. With healthy growth rates above 25% in 2023, the sector is poised for continued expansion in 2024. Patience expressed confidence in the sector's stability, citing solid fundamentals and a positive outlook for the future. The collaboration between Rwanda and the UK signifies a new chapter in Rwanda's financial landscape, with a focus on green finance, international partnerships, and sustainable growth. As Rwanda positions itself as a financial hub in Africa, the efforts to attract investments, develop green financing strategies, and ensure financial stability are crucial for long-term success.