As climate change intensifies and debt burdens tighten public finances across the Global South, a renewed push for climate justice took place in Kigali.
A high-level breakfast dialogue convened by ActionAid Rwanda this June 27, brought together government officials, civil society leaders, international finance institutions, and researchers to confront a pressing question: Can a country fight climate change without going deeper into debt?
They also explored how countries like Rwanda can meet ambitious climate goals without plunging deeper into debt.
The Dialogue moved beyond familiar calls for aid and instead demanded a transformation of the global financial system itself—one that acknowledges historical responsibility and centres equity and reparative justice.
Reframing the Global Debt Narrative:
Lauretta Uwase, the Programmes, Policy and Business Development Lead at ActionAid Rwanda called on stakeholders to move from words to actions.
A cornerstone of the dialogue was ActionAid’s “Who Owes Who?” report, which challenges the prevailing narrative around sovereign debt. Rather than focusing solely on how much the Global South owes to creditors, the report points to the far greater debt owed in return. According to new data, wealthy nations have accumulated over USD 107 trillion in unpaid climate debt and unjust financial transfers—figures that dwarf the USD 1.45 trillion in external debt currently burdening lower-income countries.
Participants underscored that this imbalance stems from deep-rooted injustices, including colonial exploitation, historical carbon emissions, and illicit financial flows. The report is reframing global conversations by positioning debt not as a matter of arrears, but of accountability.
Loretta Uwase, Program, Policy and Business Development Lead at ActionAid Rwanda, opened the discussion by emphasizing that the National Dialogue marks a pivotal moment for Rwanda to contribute meaningfully to the global debate on climate and debt justice and is part of the global “Fund Our Future” campaign.
“In Rwanda, our work is grounded in power-shifting,” Uwase said. “We engage women, youth, and frontline communities not just as beneficiaries, but as agents of change.”
Rwanda’s Triple Crisis: Climate, Debt, and Fiscal Pressure:
Officials and speakers described a “triple crisis” marked by escalating climate threats, growing debt, and shrinking fiscal space. As of 2024, Rwanda’s external debt has reached USD 9.69 billion—over 60 percent of the country’s GDP. This financial reality limits the government’s ability to invest in essential sectors like climate resilience, health, education, and infrastructure.
Speaking on behalf of the Ministry of Environment, Thadée Twagirimana, Director General of Environment and Climate Change, noted that Rwanda’s Nationally Determined Climate targets will require more than USD 11 billion by 2030. These needs are not abstract; they reflect tough decisions being made every day—between debt repayments and critical investments, between preserving fiscal discipline and expanding access to renewable energy in vulnerable communities.
Thadée Twagirimana, Director General of Environment and Climate Change, highlighted some of the initiatives the Government of Rwanda is undertaking.
Climate Finance That Deepens the Debt Trap
Another key issue raised during the dialogue was the nature of climate finance itself. Despite years of promises, including the global commitment to mobilize USD 100 billion annually for climate support, much of the funding reaching African countries comes in the form of loans rather than grants. This structure only serves to tighten the very debt that climate finance is meant to loosen.
In Rwanda and beyond, over 70 percent of climate financing continues to arrive as debt, often with interest rates that place additional pressure on already constrained economies. The architecture of international climate funding, rather than offering relief, is reinforcing cycles of dependence and inequality.
Uwase stressed that true climate justice means freeing the most affected countries from the burden of paying for a crisis they did not cause. She emphasized that support must come without the strings of additional debt. We must move from charity to climate justice and from loans to reparations.
“Our advocacy is shaped by what we see on the ground,” said Uwase. “Rural women, youth, and smallholder farmers are at the frontlines of climate impacts. This creates a cruel paradox: the very people suffering most are paying to survive taking on more debt while wealthier nations offer aid with strings attached.
This message echoed strongly with the presentation’s gender lens, which noted that austerity measures disproportionately harm women, by cutting care infrastructure and reducing access to public services, etc.
The breakfast dialogue brought together government officials, representatives of international financial institutions, civil society actors, researchers, and the media.
From Conversation to Commitment:
Both ActionAid Rwanda and government representatives agreed that the breakfast dialogue must drive change.
“There is progress,” Twagirimana said. “We have new tools and partnerships emerging. But there is still a significant gap—and we must walk this path together.”
“Let this not be just a dialogue, but a catalyst. Let us challenge ourselves to think differently, act boldly, and invest in justice,” He added.
As Rwanda positions itself as a regional climate leader, ActionAid Rwanda is building a movement that ensures those on the frontlines of crisis are also at the center of solutions. With the stakes rising and the fiscal space shrinking, the call for just climate finance is more urgent and more grounded than ever.
Rwanda’s Strategy: Climate Finance That Serves People:
Despite these structural challenges, Rwanda is working to develop alternative financial strategies that prioritize justice and national sovereignty. Officials outlined plans to roll out a Sustainability-Linked Bond framework, a model that ties financial repayments to the achievement of measurable development or climate milestones. This approach would allow the country to attract investment while remaining accountable to its environmental goals.
The dialogue also highlighted the expansion of Ireme Invest, a government-backed facility designed to reduce risk for private investors interested in green sectors. Rwanda is further exploring debt-for-nature and debt-for-climate swaps, which could redirect repayment flows into conservation and climate adaptation efforts within the country.
These innovations are being built with a focus on community participation and long-term resilience. ActionAid Rwanda emphasized that women, youth, and smallholder farmers are not only on the frontlines of climate change but are also at the forefront of solutions. Grounding financial systems in their lived realities remains a central pillar of the organization’s approach.
Several presentations were made to show where Rwanda is, what gaps need to be addressed and what the future holds.
A Global Movement for Structural Reform:
Rwanda’s efforts align with broader calls for reform emerging from the Global South. Through the “Fund Our Future” campaign, ActionAid is mobilizing voices around the world to challenge the extractive models that dominate global trade, finance, and development. The campaign advocates for the elimination of fossil fuel subsidies, the cancellation of illegitimate debt, and the redirection of investment toward people-led, regenerative solutions like agroecology and decentralized renewable energy.
These demands are not framed as acts of charity, but as long-overdue acts of justice. Speakers repeatedly made clear that the solutions must go beyond increasing aid they must transform the very systems that have perpetuated inequality for generations.
With over 50 Global South countries currently facing debt distress and more than 75 percent now spending more on debt service than on health the stakes have never been higher. As Rwanda prepares to bring its voice to international stages like the Fourth International Conference on Financing for Development (FfD4) and ongoing African Union discussions on reparations, this moment is seen as both urgent and transformative.
Finance as a Bridge to Justice:
The Dialogue closed with a shared sense of purpose rather than protest. Across all sectors, from government to grassroots organizations, there was alignment around a common vision: that finance can and must be reimagined as a tool for justice.
As the world faces overlapping crises—from climate catastrophe to economic inequity—Rwanda’s message is clear. What is needed now is not more symbolic aid, but a deep restructuring of financial systems to recognize historical responsibility, uphold dignity, and invest in a future shaped by fairness.
