The European Union (EU) GET.invest programme and the GIZ Financial Systems Development Cluster are joining forces to launch an initiative to encourage the financing of decentralised solar systems in local currency. The initiative will run until the end of 2021.
Investments in renewable energy have increased tenfold in Rwanda in recent years. According to the European Union (EU) GET.invest programme, these investments have been made more with international capital and foreign currency. “Local currency financing is one of the missing links to increase investment flows into renewable energy,” says GET.invest. The programme will be part of an initiative to encourage local currency financing for renewable energy with the Financial Systems Development Cluster of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).
The German development agency’s programme was set up by the German Federal Ministry for Economic Cooperation and Development (BMZ) with the aim of encouraging financial sector reforms. The EU launched GET.invest to support private sector investment in renewable energy. Both programmes are led by GIZ. The German financial institution is involving Rwandan banks in these programmes to increase investment in decentralised renewable energy in Rwandan francs.
Read more: Afrik21