Rwanda has officially launched its Green Taxonomy, becoming the second African nation to adopt the policy tool designed to guide investments toward environmentally sustainable projects.
The roadmap was unveiled on September 11 at the Marriott Hotel in Kigali, bringing together financial institutions, regulators, development partners, and green finance experts. A Green Taxonomy serves as a classification system that defines which economic activities and assets qualify as “green,” providing a common standard that helps investors, businesses, and policymakers align with sustainability goals.
Hortense Mudenge, CEO of the Kigali International Financial Centre (KIFC), described the launch as a milestone in Rwanda’s ambition to position itself as a hub for sustainable finance. “Taxonomies are now widely recognised as an important tool for linking finance with climate action. They direct investments toward green and climate-resilient projects while setting a standard for what qualifies as sustainable,” she said.
The taxonomy, approved by cabinet in April after extensive consultations, was developed through collaboration across public and private sectors. Rwanda Green Fund CEO Teddy Mugabo highlighted its role in accelerating funding for environmentally sound projects.
“Now that we have this classification, project developers have a guideline. For the fund, it means disbursing funding faster because we are seeing a stronger pipeline of projects,” she said.
Mugabo stressed that the tool supports Rwanda’s Vision 2050, which aims to achieve a carbon-neutral economy. By defining standards across sectors such as agriculture, construction, energy, and transport, the taxonomy will help small and medium-sized enterprises (SMEs) access green finance more easily while preventing “greenwashing.”
From a citizen perspective, the taxonomy is expected to channel climate finance to farmers and small businesses through financial institutions, including SACCOs. Herbert Asiimwe, Head of Financial Sector Development at the Ministry of Finance, explained: “A livestock farmer who wants to install a biogas system can approach their SACCO for a green loan aligned with the taxonomy, accessing funding at a lower cost.”
He added that the taxonomy remains flexible, allowing new sectors to be integrated over time as Rwanda advances its climate and development agenda.