Creating a circular ecosystem in Rwanda and beyond

On May 19th, we co-hosted a Roundtable called ‘Investing in the Green & Circular Economy’ with the Rwanda Green Fund (FONERWA) in Kigali. Gathering key investors, experts, and capacity builders, the Roundtable set out to discuss the main pain points for circular / green SMEs, map the existing resources in the ecosystem, and explore opportunities for collaboration between investors and intermediaries to make it easier for entrepreneurs to grow healthy green enterprises.

Bottlenecks facing SMEs, specific to the green/circular economy, include development stage as some circular / green SMEs are quite early-stage, they fall between different types of capital providers, high capex investments that put pressure on funding rounds, a nascent ecosystem that results in fragmentation across the value chain, and difficulties accessing the right technical assistance / capacity building, and difficulties establishing new markets for new technologies and products. Additionally, most circular economy business models play an important role towards creating social and environmental impact, and it’s therefore important to have access to multiple types of capital, including grant capital.

Together, the participants from the Roundtable will continue to explore the opportunities for blended finance, co-investment, capacity building, innovative finance, impact-linked finance, etc. Stay tuned!

Since the roundtable, GIZ and the Frankfurt School published an insightful report on ‘Financing the Circular Economy’, which includes a particular focus on Rwanda.