Supporting BRD’s Strategic Transformation and Sustainable Growth

Since 1994, Rwanda has achieved remarkable economic and social progress, underpinned by strong governance and sustained growth. However, the model has relied heavily on public investment, creating a need for a more dynamic private sector to sustain growth and meet the targets of Vision 2050 and the National Strategy for Transformation (NST1).

BRD, Rwanda’s national development bank, plays a key role in financing priority sectors such as manufacturing, agriculture, energy, housing, and infrastructure. To fully deliver on its mandate, BRD must scale up its lending activity, strengthen institutional capacity, enhance risk management, and integrate environmental, social, and climate considerations across its operations.

The project supported the National Strategy for Transformation (NST1 and NST2) by accompanying BRD’s strategic evolution and strengthening its financial and operational capacity. It aimed to:

(i) contribute to the growth of BRD’s lending activity;
(ii) enhance its strategic positioning to promote sustainable growth in key sectors of the economy;
(iii) reinforce its capacity for risk management and financial steering;
(iv) increase its developmental impact by supporting its positioning as a “green bank”.

To achieve these objectives, the operation combined:

• A results-based line of credit – 20 M€ disbursed in three tranches, each conditional on the achievement of institutional and operational reforms defined in a “Matrix of Changes” covering governance, investment strategy, fundraising, and climate/ESG integration.

• A technical assistance program – 750 k€ in grant funding to finance studies, advisory services, and training, enabling BRD to implement the targeted reforms, integrate climate and gender considerations into its products, and improve its environmental and social risk management systems.

This dual approach ensured that AFD’s financial support directly translated into structural improvements within BRD, positioning the bank to better serve Rwanda’s development priorities and deliver lasting impact.

The project helped strengthen BRD’s positioning as a key player in green and inclusive finance:

• Clearer vision: a new investment strategy focused on Rwanda’s priority sectors.

• Green finance: first climate strategy and tools to include environmental and social issues in investments.

• Inclusion: updated Gender Action Plan and new financial products for women and businesses.

• More funding: reforms unlocked over $200M in new resources (Ireme Invest, two Sustainability-Linked Bonds) and accreditation from the Green Climate Fund.

BRD is now stronger, greener, and better able to finance Rwanda’s sustainable development and attract private investment.