This K4DD Rapid Evidence Review analyses how Rwanda has pursued a combination of domestic banking reform and green finance instruments to build its financial sector.
In the post-1994 period, the government partnered with international financial institutions like the World Bank and the International Monetary Fund (IMF) to build a liberalised, internationally compliant domestic banking sector. Rwanda also attracted green and sustainability-linked financing from multilateral institutions. It has succeeded in accessing IMF and World Bank credit facilities while deploying green bonds to finance its nationally determined contribution plans. Despite these achievements, the underlying conditions of the Rwandan economy reveal significant structural limitations: credit concentrated in urban real estate, low savings rates, an underdeveloped green project pipeline, and a climate financing gap that private instruments cannot close.
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