EIB and Bank of Kigali Launch €100 million agroecological funding to revolutionize Rwandan agriculture

The European Investment Bank (EIB) in collaboration with the Bank of Kigali, has embarked on a strategic partnership to funnel a €100 million investment into agroecological ventures across Rwanda. This financial boost is envisaged to revolutionize the agricultural landscape of rural Rwanda by enhancing the availability of loans to agricultural technology startups and established agribusiness enterprises.

This substantial investment from the EIB is poised to assist Rwandan farmers in navigating the increasingly volatile climate, which presents a myriad of challenges including but not limited to intense weather fluctuations, periods of drought, and excessive rainfall. The ramifications of such climatic disturbances are manifold, impacting the economic viability, social dynamics, and commercial outcomes of Rwanda’s agricultural domain.

A representative from the EIB commented on the profound implications of the collaboration: “This initiative empowers the agricultural stakeholders in Rwanda to proactively respond to the vicissitudes of climate change. It strives to forge inclusive and durable agricultural value chains, with a particular emphasis on sectors such as horticulture and aquaculture, thereby safeguarding the alimentary self-sufficiency for the nation’s population of around 14 million.”

The German government is set to contribute technical support in evaluating the climatic risks associated with the enterprises that will benefit from this fund. This commitment is in line with the focal points addressed at COP28, where leading global development finance institutions were urged to prioritize investments in agricultural and food systems. These systems are deemed the frontline defense in the combat against climate change, as iterated by the Food and Agriculture Organization (FAO).

Rwanda has proactively taken steps to integrate agroecological principles by rolling out educational programs directed at its farming community. As an illustration of these efforts, in the Gahengeri region located in the eastern part of Rwanda, over two thousand farmers were trained in 2022. These training sessions covered a range of crucial agricultural practices from storage management, drying procedures, irrigation techniques to hulling processes. This education initiative falls under the umbra of the corporate social responsibility engagements pursued by Green Light, a member of the Hyundai Motor Group family.

All things considered, the €100 million alliance between the EIB and the Bank of Kigali marks a milestone commitment to fostering a climate-resilient and ecologically sustainable agrarian future for Rwanda.