Rwanda has earned the fifth position in environmental sustainability among African countries, as indicated by a recent report assessing the nation’s commitment to sustainability initiatives, programs, and investments. In the face of daunting challenges posed by climate change, particularly impacting developing nations, Rwanda has proactively rallied for collective action. The primary goal is to boost economic growth and productivity through private sector leadership, emphasizing the sustainable stewardship of the environment and natural resources. This strategic approach aims to facilitate a shift towards a green economy amid the prevailing environmental challenges.

The Agility-commissioned Middle East and Africa Environmental Sustainability Scorecard report, compiled by Horizon Group, a Geneva-based research and analysis firm, provides a thorough assessment of governmental and corporate efforts in environmental sustainability. It commends the commitment of countries in the Middle East and Africa to sustainable practices, noting that many, though initially perceived as ‘latecomers’ to global sustainable development, are rapidly intensifying their focus on sustainability.

The report examines 17 countries, evaluating their performance across six key indicators: green investment and technology, sustainable infrastructure and transport, governance and reporting, energy transition, environmental ecosystems, and circularity. Rwanda secured the fifth position in the rankings, with South Africa, the United Arab Emirates, Egypt, and Saudi Arabia leading the list. Following Rwanda are Kenya, Uganda, Ghana, Morocco, Qatar, Tanzania, Nigeria, Bahrain, Kuwait, Cote d’Ivoire, Oman, and Mozambique. The rankings underscore the noteworthy environmental progress made by these nations in the pursuit of sustainability.

As the world prepares for COP28 (UN Conference of the Parties) commencing on November 30, a report has underscored that, despite active government involvement in climate action, a notable proportion of businesses appear uninformed about the UN-led COP process—a crucial framework for assessing and advancing global initiatives against climate change.

The report reveals that a striking 82 per cent of African businesses and 49 per cent of Middle East businesses lack awareness of COP. Moreover, only a handful of companies utilize it to establish sustainability goals. Interestingly, 97 per cent of companies acknowledge the detrimental impacts of climate change on their operations, with 49 per cent experiencing severe damage or a substantial and escalating influence.

This underscores the imperative of engaging the private sector not only in the execution phase but also in the early stages of policy decision-making. Experts argue that involving businesses from the outset is crucial for fostering a comprehensive understanding and garnering support.

Rwanda, as part of its commitments outlined in the Nationally Determined Contributions (NDCs) to the Paris Agreement, has pledged to decrease its greenhouse gas emissions by 38 percent by 2030 compared to a business-as-usual scenario, contingent upon international support and funding that complements domestic resources.

This undertaking, with an estimated investment cost of $11 billion, focuses on various sectors including water security, agriculture, land and forestry, settlements, and health.

While recognizing the pivotal role of private sector investments in addressing the drivers and impacts of climate change for sustainable development and economic growth, Rwanda encounters challenges in mobilizing private sector financing. These challenges stem from high upfront capital requirements for key projects, financing costs imposed by banks, and collateral demands.

Addressing the capital gap for green projects, Beatrice Cyiza, the Director General of Environment and Climate Change in Rwanda’s Ministry of Environment, emphasized the ongoing efforts to enhance partnerships with the private sector. Cyiza acknowledged that while projects addressing climate change aspects, such as adaptability, carbon emissions reduction, or building resilience, may have environmental merit, they are often perceived as non-bankable by commercial banks due to assessed risks.

In response to this issue, Cyiza stated that collaborative initiatives with banks are underway to build the private sector’s capacity and devise innovative financing mechanisms targeting both SMEs and larger enterprises.