Rwanda is shifting from reacting to natural disasters to proactively preparing and building resilience before crises occur. The government has unveiled a framework aimed at strengthening the country’s financial capacity to respond quickly and effectively to disasters.
As part of this initiative, Rwanda has secured a US$140 million Catastrophe Deferred Drawdown Option (Cat DDO), a financial instrument that allows immediate access to funds following a natural disaster. This ensures that emergency resources are available without delay, reducing response time and supporting faster recovery efforts.
The program also provides comprehensive support for micro, small, and medium enterprises (MSMEs), helping them recover from losses caused by floods, landslides, and other climate-related events. Targeted financial and technical assistance will enable these businesses, which form the backbone of Rwanda’s economy, to rebuild and continue operating after disasters.
Another key component is strengthened collaboration between the public and private sectors. Commercial banks, insurance companies, and other financial institutions are working alongside the government to enhance the nation’s disaster risk management capacity. By integrating financial planning with climate resilience strategies, Rwanda is establishing a robust safety net against climate risks.
Officials from the Ministry of Finance and Economic Planning emphasized that this approach marks a strategic shift in national development planning. Instead of focusing solely on post-disaster relief, Rwanda is investing in proactive measures to minimize long-term social and economic disruption.
