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GOVERNMENT OF THE REPUBLIC OF
RWANDA
G20 DEVELOPMENT WORKING GROUP (DWG)
WORKSHOP ON INCLUSIVE GREEN GROWTH
Moscow, Russia
Presentation:
Mobilisation of private resources
for financing inclusive green
growth
7 July 2013
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Presentation Outline
1. Country context.
2. Policies, Legislations, strategies and programs for Private
Green Investments
3. Market failures and barriers hampering Green
investments
4. Current Initiatives and Achievements
5. Challenges and opportunities for Green Private
Investment
6. Role of International Community to mobilize private
investment for green growth
7. Rwanda’s Green Growth Strategy
8. Rwanda Fund for Environment and Climate Change
(FONERWA)
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Rwanda: A country of a thausand Hills
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RWANDA CONTEXT
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Rwanda is a small, hilly, landlocked country in East Africa with the highest
population density in Africa.
It has experienced an average GDP growth rate of 8.5% in the past five years.
Rwanda’s collective vision for development is embodied in Vision 2020,
which seeks to transform the country from a subsistence agriculture
economy to a knowledge based middle income economy by 2020.
Export revenues are dominated by minerals, tea and coffee while services
and agriculture contribute 81% of GDP.
Tourism has recently become the largest foreign exchange earner.
As the population g r o w s a n d u r b a n i s a t i o n a n d industrialisation
increase, more and more pressure is placed on the natural resources in
Rwanda, notably land, water and forests.
Rwanda is experiencing one of the most exciting and fastest periods of
growth and socio-economic progress in its history. It was the tenth fastest
growing economy in the world during the decade from 2000.
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RWANDA CONTEXT
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At the same time more than a million people have been lifted out of poverty.
Population growth is stabilising and the country is making great strides
towards achieving the MDGs and middle income status.
However, there has been insufficient involvement of the private
sector in some areas. This is attributed to the quality of policy dialogue and
engagement of private sector in implementation.
Rwanda is determined to pursue a ‘green economy’ approach to
economic transformation. The medium term strategy, has focused on:
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development of sustainable cities and villages.
piloting a green city,
piloting a model mine,
attracting investors in green construction,
Interventions on green urbanisation and the promotion of green innovation in
industrial and private sectors.
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National policy and strategic orientation
for Private Green Investments
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Vision 2020, MDGs, 7YGP & EDPRS II (2013-2018)
Policies: Environment and Natural Resources (ENR);
Economic and other sectors
Legislations: Organic Law on environment, Land law,
Forest law, Mining law, Water law
National Strategy for Climate Change and Low Carbon
Development (Green Growth and Climate Resilient
Strategy)
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Cross sectoral in scope and includes a sustainable financing
mechanism for environmental sustainability, climate change and
green growth
Private Sector Development Strategy
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Market failures and barriers hampering
Green investments
Limited investment in green economy led business
opportunities such as: Renewable energy, energy
and water efficient technologies, low Carbon
transportation systems such as railways;
 Limitations of technology transfer such as smart
irrigation systems;
 Limited capacity and overall knowledge of the
economic impacts of climate change and green
economy
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Current Initiatives and Achievements
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Master plans: Land; Kigali City and Water
Resource and Irrigation
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Drive towards energy efficiency: methane
extraction and geothermal exploration
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Environmentally sensitive packaging products
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National policy on Ban of Plastic Bags
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Sustainable financing: Rwanda Environment and
Climate change Fund (FONERWA)
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Clean Development Mechnism (CDM)
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Sustainable agriculure systems and practices
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One cow per family program
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Soil erosion control measures
Motor Vehicle Inspection Centre to regulate
emmissions
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Challenges and opportunities for
Green Private Investment
Challenges
Opportunities
Fossil fuel still predominant source of
Energy
High potential of Hydro, Methane gas,
Geothermal, etc…
Low investment for Private Sector
initiatives
• Public Private Partnership
• FONERWA presents financing options
• Good environment for investment
High Population growth
Public awareness and sensitization coupled
with creation of non-agricultural employment
(Green jobs)
Dependancy on Natural Resources
Skills development through education will
attract investors to create more jobs
Lack of clean technologies
Chances to benefit from CDM and NAMA
for technology transfer.
Regional hormonization of
Harmonization efforts of EAC legal and
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Other critical opportunities for private
sector based green investments
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The greening of industry is supported by the Rwanda Resource
Efficient and Cleaner Production Centre (RRECPC) and the
National Industrial Policy.
The refinement of Public Private Dialogue and the adoption of
private sector investment targets promotes private sector
contribution to sustainable economic growth.
The Environment and Climate Change Innovation Centre
will support development and transfer of promising ‘green’
technologies that are likely to provide large-scale environmental
and economic benefits.
Rwanda Fund for Environment and Climate Change
(FONERWA), the sustainable financing mechanism for Green
growth and Climate Resilient Strategy will provide financial support
to private sector led green initiatives.
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Green Economy Success Stories
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Rehabilitation of Rugezi Wetland
Complex
Tourism revenue sharing to benefit
local communities
Ban on plastic bags use
Successful Green village pilots has
demonstrated poverty reduction
benefits
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Green Growth Strategy Programmes of Action
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The strategy provides opportunities to attract private
sector investments:
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in Sustainable land use management, Integrated Water Resource
Management and climate compatible mining
Sustainable forestry, agroforestry and biomass
Sustainable intensification of small-scale farming and agricultural
diversity of markets
Low Carbon Energy Grid and Small-scale energy access in rural
areas
Disaster Management ,climate predictions and Health
Green industry and private sector development, Ecotourism,
conservation and PES
Resilient transport systems, Low carbon urban systems
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MURAKOZE!
THANK YOU VERY MUCH!
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