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RWANDA - Path to sustainable finance: building skills for the future
On January 24, 2025, as part of the project supporting the development of the Kigali International Finance Centre (KIFC), the Luxembourg Green Exchange, in collaboration with the Rwanda Stock Exchange (RSE), hosted a training session titled "Sustainable Debt Instruments and Green Taxonomies". This initiative aimed to strengthen the capacity of the KIFC and its stakeholders to position Rwanda as a leading destination for sustainable finance.
Over 60 participants from the KIFC ecosystem attended a dynamic training session led by Paul Chahine, the Sustainable Finance Manager at the Luxembourg Stock Exchange (LuxSE) and lead lecturer at LGX Academy. Launched in 2020, LGX Academy was created to enhance sustainable finance education for professionals, primarily in Luxembourg, by promoting a collaborative learning environment. During this session, participants delved into sustainable debt instruments, including Green, Social, Sustainability, and Sustainability-Linked Bonds, all of which are crucial for raising capital to support projects with both environmental and social impact.
Paul Chahine (LuxSE), Chiara Caprioli (LuxSE), Pierre Celestin Rwabukumba (RSE), Laura Bierer (LuxDev), Valence Mushimwe (LuxDev)
Exploring sustainable debt instruments
The training emphasised the International Capital Market Association’s Green Bond Principles, which ensure transparency and accountability through key areas such as project selection, fund management, and impact reporting. Effective reporting plays a crucial role in maintaining investor confidence and tracking the positive outcomes of financed projects.
To bring these concepts to life, case studies from Rwanda, Tanzania, and Ghana highlighted successful green bond issuances, showcasing real-world applications and lessons learned.
Understanding green taxonomies
A central theme of the session was the role of green taxonomies — classification systems that define environmentally sustainable economic activities. These frameworks help investors identify credible green projects, ensuring funds are directed toward initiatives that genuinely contribute to sustainability.
For an investment to be considered "green", it must align with key environmental priorities (i.e., climate change mitigation, biodiversity protection, and resource efficiency). It should also contribute positively to biodiversity conservation and restoration, while adhering to social considerations that ensure fair labor practices and minimise negative social impacts. Additionally, it must not cause significant harm to other environmental objectives.
Participant takeaways
"The training has been highly valuable, particularly in highlighting the opportunities and challenges around green and social bonds. As a business development manager focused on attracting investment to Rwanda, I’ve realised the need for larger ticket sizes in bonds to attract international investors. While Rwanda’s market is small, there’s significant potential to develop green bonds that serve the broader African market, leveraging the infrastructure already in place here. The session also shed light on the lack of social bonds in Africa, with only two issued in South Africa. Given the many social projects across the continent, this is a gap we need to address. Investment is crucial, and while the market size remains a challenge, we must explore more commercialised solutions to social issues, moving beyond reliance on grants, as seen in the current landscape", told Cindy Ruvebana, Business Development Manager at Rwanda Finance.
This training marked project's first in-person event on sustainable finance since the initial virtual session in December 2024. The strong engagement and insightful questions from participants highlighted their dedication to deepening their expertise in the field. Beyond enhancing knowledge, this initiative underscores the continued collaboration between Rwandan and Luxembourgish stakeholders, promoting knowledge exchange and supporting the growth of sustainable finance.
The Support to the development of Kigali International Finance Centre project is financed by the Grand Duchy of Luxembourg and implemented by LuxDev, the Luxembourg Development Cooperation Agency.
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