APA – Kigali (Rwanda) -The International Monetary Fund (IMF) has approved a disbursement of $98.6 million for Rwanda’s Policy Coordination Instrument (PCI) in climate resilience targets, an official statement disclosed Thursday.
The Special Drawing Rights (SDR) financing was released after the IMF Executive Board was satisfied with the review of the instrument accompanying the Resilience and Sustainability Facility (RSF), which allocated the country an amount of $319 million in December 2022.
The PCI aims at supporting the government to build on the progress in macroeconomic, fiscal, and financial reforms to deliver more inclusive, resilient, and sustainable growth.
According to the IMF, the reforms emphasise policies to ensure macroeconomic stability and reforms to mitigate pandemic scars and to build socioeconomic resilience to shocks and insure against downside risks.
Kenji Okamura, Acting Chair of the Executive Board, observed that the recent natural disaster in some parts of the country is expected to take a heavy toll on Rwanda’s economy, and it is a testament to the country’s high vulnerability to climate change shocks.
Rwanda is the first country in the sub-Saharan region to benefit from the RSF, being at the forefront of tackling climate change adaptation.
“Pressing ahead, it will be important to advance reforms in green public finance management and climate-focused public investment management with a view to create an enabling environment for attracting climate finance and support private green investment,” Okamura recommended.
Rwanda has a climate action plan that will cost US$11 billion through 2030.
CU/abj/APA