Rwanda Unveils Multi-Million Dollar Fund for Green Revolution

Rwanda Fund for Environment and Climate Change

According to KT Press, it has been operating as a pilot project for the last two years during which more than 950 proposals have been received – all aimed at countering the devastating impact of climate change.Rwanda decided to keep it permanent, and the Fund for Environment and Climate change {FONERWA} was born October 9 in Kigali, the capital.

The biggest of its kind in Africa, government and financiers say the fund should guide Rwanda to a green economy for the next 50 years. A study established that if no action is taken immediately, Rwanda’s economy would fluctuate by 1 percent annually over the next coming years – a direction Rwanda cannot afford.

At the inaugural event, Rwanda’s Prime Minister Anastase Murekezi said a green economy would minimize hunger, and eradicate poverty. “We are not there yet but on the right truck,” said the Premier.

The project has mobilized Rwf 59 billion (US$85m). Eighteen (18) proposals have been accepted. Five others are already operational.

The Fund finances at least 70 % of the costs needed to run a project – for both local and foreign players.

“Getting funding for small scale projects elsewhere is quite hard, Rwanda beats the odds,” said Ankush Chabria, Managing Director of Novel Energy Limited {NEL}. The Indian firm runs a “Power to the People” project including a 70 KW rice husk gasification plant in Nyagatare district, and a 500 KW mini-hydro power plant at Gakenke district.

In Gicumbi district, there is the “It takes a village” project. More than 40 families got access to livestock, land, clean water and biogas cooking system.

“Let it rain” is another of the projects. It harvests rainwater to tackle soil erosion and flooding. The project is targeting to equip 17,000 homes with rainwater harvesting facilities.

“Through this project, we get safe water, and waterborne diseases are no longer a problem,” said Sister Laetitia Musanabaganwa, a beneficiary.

The NGO ‘Send a Cow Rwanda’ is using its Rwf600m ($900,000) financing to provide rural families with cows – which are in turn sources of compost manure.

The UN and UK are the biggest financiers of the Rwanda climate fund. It will also tap for financing from the 2bn Euro funding portfolio unveiled in New York during the UN general assembly.

Rwanda’s President Paul Kagame put pen to paper on the agreement with EU Commission Jose Manuel Barroso.

Press Release About Press Release