Lately, Germany and Rwanda have signed a Climate and Development Partnership. How will this partnership benefit Kigali International Finance Center and Frankfurt Main Finance?
Nick Barigye: At the start of this month, a funding agreement worth $62 million was agreed upon between Rwanda and Germany’s respective ministries for economic development.
Rwanda was the first African country to submit to a tougher climate target ahead of COP26. We are committed to cutting our emissions by at least 16% by 2030 compared with a business-as-usual baseline, potentially rising to 38% depending on international support. Overall, Rwanda requires over $11 billion from developed nations.
This agreement is an important step in the right direction, as it will help us drive private-sector-led sustainable growth. Rwanda intends to become a low-carbon and climate-resilient economy by 2050. Much of the finances received under this agreement will be filtered into the Rwanda Green Fund (FONERWA). This will facilitate our green transformation through investment in public and private projects.
Hubertus Väth: The fact that the newest German Federal Minister for Economic Cooperation and Development, Svenja Schulze, made her first working visit to Rwanda shows the remarkable friendship between our two countries. This partnership, and the resulting cooperation agreement, lays a perfect foundation for the cooperation between the cities of Frankfurt and Kigali in the area of green finance.
One obvious area is the reporting on Sustainability measures. Only last year, Frankfurt was chosen as the International Sustainability Standards Board (ISSB)’s seat of the Board and the chair’s office. Frankfurt Main Finance was one of the head coordinators of the application process. We are now in close contact to help with the reach out. Building a global reporting standard within a year is a momentous task. That’s what the ISSB aims to achieve, and this is where we help.
How is the WAIFC helping to empower collaboration between European and African IFCs?
Nick Barigye: Under the dynamic leadership of Jochen Biedermann, WAIFC is paving the way for greater collaboration through its numerous activities across the world.
WAIFC facilitates the exchange of best practices and cooperation between IFCs, including its three African members, Kigali, Casablanca, and Mauritius, and its latest observer Lagos, with the rest of its global member network.
By facilitating various projects and events that focus on a range of topics, including post-COVID economic recovery, fintech, sustainable finance, and the future of financial centers, we can leverage the invaluable expertise of our fellow IFCs.
For example, in February this year, WAIFC participated in the FinCity Global Forum, which brought together IFCs from across continents to discuss the need for collaboration to solve global social issues. In January, WAIFC and DIFC held a data privacy roundtable that brought IFCs together to discuss how we can collaborate better on cross-border data exchange.
Hubertus Väth: WAIFC has so much to offer. Financial centers around the world share best practices and build closer relationships by working together on joint projects, such as inclusive finance, green finance, or SME financing. Kigali International Financial Center is Africa’s newest financial hub and the 3rd African member of WAIFC.
When visiting Kigali, we were very impressed by the vision, dedication and support from high up Rwanda finance got. While we live in the second decade of the rise of Asia, we can see on the horizon that Africa is the next continent to power innovation and development in the not-too-distant future. WAIFC will help lay the foundations, and Frankfurt, as one of its founders, is happy to contribute.
Source: World Alliance of International Financial Centers
Photos: Unsplash (title), Rwanda Finance (Nick Barigye), Frankfurt Main Finance (Hubertus Väth)