Faced with shrinking concessional finance and rising borrowing costs, Rwanda has worked with the World Bank Group to leverage limited public funds and risk-sharing instruments to unlock private capital at scale and on affordable terms. It’s an arrangement holding important lessons for low-income countries that must do more with less.
KIGALI—Developing economies face a confluence of pressures, each of which implies large investment needs. They must create jobs for rapidly expanding populations, boost resilience to external shocks and the effects of climate change, and build the infrastructure required for long-term growth. And yet, with concessional finance shrinking, borrowing costs ballooning, and international capital markets remaining volatile, funding these investments is harder than ever.
KIGALI—Developing economies face a confluence of pressures, each of which implies large investment needs. They must create jobs for rapidly expanding populations, boost resilience to external shocks and the effects of climate change, and build the infrastructure required for long-term growth. And yet, with concessional finance shrinking, borrowing costs ballooning, and international capital markets remaining volatile, funding these investments is harder than ever.