Overview
The Challenges
- The Land of a Thousand Hills, Rwanda’s uneven topography complicates the construction of roads, pipelines and electricity. This isolates towns and cities from one another and makes the transportation of goods extremely challenging. The landscape also has an impact on the layout of cities and the areas of land that can be farmed.
- High seasonal rainfall benefits agriculture, but leaves some areas susceptible to flooding, and others prone to drought. This variability makes a universal national resource management strategy difficult – a fact that is further exacerbated by climate change.
- Rwandan society faces several significant developmental challenges, making livelihoods critical. In rural areas, coverage of basic services is very low. The country is small and densely populated, with 80% of the population living in rural areas. Kigali, the main urban centre, and surrounding secondary cities need significant development and support to accommodate the rapid urbanisation that is already taking place – and will only accelerate in the years to come.
The Opportunities
- Rwanda is a highly ambitious country. In 15 years, the Government plans to have 50% of its population living in urban areas, and is dedicated to providing new services and income growth for its citizens.
- Rwanda is endowed with considerable natural resources, from minerals to hydropower potential, to abundant forests, tourist-friendly gorillas and agricultural opportunities. Each of these resources has the potential to support livelihoods and drive economic growth.
- Incentivising investment by, and the return of, the highly educated diaspora will boost the Rwandan economy.
- The country has an extremely committed public sector with an unparalleled work ethic, a can-do attitude, and desire to change their country for the better. Cooperation between government, the development banks, and donors underpins this transformation.
The Vision 2050 strategy commits the Rwandan government to 16 aspirational goals, from becoming 70% urban to achieving carbon neutrality and offering affordable, high-quality housing and education for all. The country’s objectives, challenges and opportunities have to be addressed simultaneously – and practically – if it is to achieve many of its aspirations by 2050.
VISION 2050
The Pegasys Partnership
In 2010, Pegasys began its work in Rwanda, as part of its regional work in the Nile Basin to promote trade and effective water use. Pegasys’s relationship with Rwanda grew exponentially from there. In 2016, Pegasys began working with FONERWA (the Rwanda Green Fund) when its former head, Alex Mulisa, approached the company for “more than just consultation on a pilot project”. Mulisa’s philosophy was simple: connecting the dots between sectors, projects and organisations is key to developing an economy – and building a country. This overarching philosophy immediately and loudly resonated with that of Pegasys, and formed the foundation of what is now a dynamic partnership.
STEP 1
Identify opportunities and source finance
The Strategic Programme for Climate Resilience (SPCR) was Pegasys’s first engagement in Rwanda. This national investment strategy was dedicated to driving multi-sectoral, climate-responsive investment throughout the country.
Primed to identify programmes and initiatives that could be translated into a plan, the completed strategy could be presented globally for climate and related finance, mobilising funds and facilitating intersectoral dialogue between Rwanda’s key players.
STEP 2
Implement innovative and practical solutions
One of the projects that emerged off the back of the SPCR was the Green Climate Fund (GCF) application, which focused specifically on catchment restoration. More than just an innovative idea or a statement of intent, this practical project outlined and demonstrated how funding can be deployed for a specific and significant intervention. By forming strong partnerships and listening to the client’s needs, Pegasys has co-created a targeted solution that is making – and will continue to make – a tangible difference to the lives of many people.
STEP 3
Build on success and expand scope
Pegasys’s institutional knowledge, consistency and conscious approach to solution-orientated partnership and work results in strong networks and trust. Beyond the public sector, Pegasys builds relationships with supportive global financiers who are looking for sound, coherent initiatives and projects in which to invest. Having seen the success of our initial activities, the World Bank invited the Pegasys team to support a number of initiatives, including its City Strategy, implementing a wide range of urban interventions. Increased construction of low-income housing, for example, will help Rwanda to address its massive affordability gap – and take the country one step closer to achieving its Vision 2050 objectives.
STEP 4
Mobilise resources
In 2019, the Pegasys team helped Rwanda to draft a Resource Mobilisation Strategy, which motivated for an additional $2 billion in international funding. This money will be used to implement projects in different sectors, from urban development to transport, waste management and resilience, creating the kind of lasting, integrated change that Rwanda intended with its Vision 2050 strategy.
STEP 5
Integrate, consolidate and expand
Pegasys has also developed a revised Green Growth and Climate Resilience Strategy (GGCRS) for Rwanda, further unpacking the country’s long-term vision and identifying the specific actions that need to be taken over the years and decades to transform those goals into realities.
Rwanda is well on its way to achieving many of its aspirations. We love working in this country, because – to put it simply – things actually happen. The people of Rwanda are dedicated to, and serious about, what they are doing – and we have no doubt that they will achieve a great deal.
Dr Guy Pegram, Director
10 of the best
1. Preparing projects for the Water and Climate Development Programme (2014-15)
Pegasys assisted the Global Water Partnership (GWP) and the African Council of Ministers (AMCOW) with project preparation and financing advisory in several countries – including Rwanda – to identify and develop bankable proposals in the climate resilience and water sectors.
2. Developing a multi-sectoral climate resilience investment plan (2016-18)
Pegasys worked with Rwanda’s Green Fund (FONERWA) and the World Bank to prepare the country’s National Climate Resilience Investment Plan, under the Climate Investment Fund’s (CIF) Pilot Programme for Climate Resilience. In 2018, we then designed, facilitated and implemented a comprehensive training programme for national, local and district government officials and civil society.
3. Mainstreaming resilience into urban planning & infrastructure delivery (2018-20)
Pegasys worked with the World Bank and Rwanda’s Ministry of Infrastructure (MININFRA) to integrate climate resilience considerations into urban planning and infrastructure development and delivery.
4. Developing a Green Climate Fund (GCF) proposal for catchment restoration (2019)
Pegasys enhanced Rwanda’s climate finance readiness through a project funded by the World Bank, driven by FONERWA and the Rwanda Water and Forestry Authority. We prepared a GCF concept note and full funding proposal related to the restoration of the Upper Nyabarongo catchment.
5. Preparing projects for sustainable cities initiatives (2019)
The World Bank and the Rwanda Environment Management Authority (REMA) sought Pegasys’s help in identifying and developing viable and bankable projects around nature-based urban resilience (e.g. solid waste management and urban wetlands) that can be positioned to receive funding under the Global Environment Facility’s (GEF) sustainable cities component.
6. Mobilising resources to support growth of Rwanda’s Green Fund (2019)
Pegasys assisted FONERWA with its strategic growth strategy. The focus of this assignment was on developing a resource mobilisation strategy and supporting fundraising for FONERWA’s major programmes. Given that a strategic focus area for the fund is connectivity and mobility, we developed a sustainable transport investment strategy, with key programmes including electric and smart mobility.
7. Strengthening land supply for affordable housing (2019)
Pegasys examined the legal and policy framework for urban land supply and unplanned settlement upgrading in Kigali for the World Bank. The goal was to identify regulatory and institutional reforms needed for the Ministry of Infrastructure to strengthen existing systems, based on principles of land readjustment, to bring down the price of land and materials for housing.
8. Revising the Green Growth and Climate Resilience Strategy (GGCRS) and green growth costing (2020)
Together with the UNDP and Government of Rwanda, Pegasys began a process to update the GGCRS – Rwanda’s premier climate resilience strategy – and ensure its relevance and applicability for the coming decade.
9. Operationalising the Green Incubator and Accelerator Facility for the Rwanda Green Fund (2021)
Pegasys is leading the operationalisation of the Green Incubator and Accelerator Facility, for the Rwanda Green Fund. The Incubator is designed to support private sector enterprises that develop “green” products, projects and interventions, across more than 10 commercial sectors. This support is provided by FONERWA, which crowds-in private venture capital, using innovative finance approaches. The operationalisation tasks entail piloting both the Incubator and Accelerator, developing its resource mobilisation strategy, and early fundraising activities to attract private capital.
10. Developing an Integrated Solid Waste Management Strategy (2021)
Pegasys is drafting Rwanda’s first-ever national-level Integrated Solid Waste Management Strategy (ISWMS), for FONERWA and MININFRA. The strategy is a “new dawn” for waste management in Rwanda, and will outline clear visions, goals, objectives, targets, priority initiatives and future investments for solid waste service delivery. Our job is to help develop an action plan and roadmap, while also raising awareness and providing training for key staff within the government, agencies and other important stakeholders to ensure smooth implementation.
The Numbers
Meet the Team
Part of co-creation is being collaborative, but not pliant. You need to know when to push back and when to listen to your client. This is particularly important in Africa: you need to come in with confidence in your own abilities – because they want to know that they’ve got the experts – but you can’t be so confident that it borders on arrogance. For me, that’s probably one of biggest success factors of Pegasys in this environment: the ability to both listen and guide. It’s the ability to hear what’s not being said and know what the country needs, not just what you think the project needs.
Dr Guy Pegram, Director