Country
Ruanda
Local Project Partners
Rwanda Institute of Cooperatives, Entrepreneurship and Microfinance (RICEM)
German Project Partner
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Donor
Enabel (belgian development agency)
Duration
05.07.2023 - 04.07.2025
The Rwandan government wants to transform the economy into a service-oriented one. High unemployment is to be countered, among other things, by creating fair employment conditions. 65% of the youth are unemployed and have no possibility to get into formal employment. Therefore, the government tries to create other sustainable income opportunities and promotes entrepreneurship. This is also true for women, who continue to take on mostly unpaid household or subsistence farming tasks. Female and youth entrepreneurs are in the minority, as they often lack specific knowledge and skills. Low vocational training is to be countered by increased TVET measures, if possible with a dual approach. Furthermore, women and young people have little access to financial institutions. The information imbalance between them, with low bankability on the part of clients and a lack of willingness and advisory skills on the part of FSPs, leads to an undersupply of urgently needed, unsecured, cash-flow-based loans. This is exacerbated in rural districts such as Rusizi.
Start-ups, especially in handicrafts, processing of agricultural products or export, which are run by women or youths, are met in their individual situation and accompanied by training, coaching and mentoring in investment decisions and expansion processes. The business environment, market situation, legal framework and financing options are taken into account. The aim is to ensure that the entrepreneurial decisions have a sustainable positive impact. As a further growth driver, the use of modern technology should reduce costs, diversify sales and optimise purchasing. Target group and solution-oriented BDS including professional individual coaching, mentoring and group discussions additionally also lead to bank maturity, which is why, despite the demand orientation of this intervention, FSPs are to be included in the BDS in order to reduce the existing gap between start-ups and FSPs via professional exchange and thus increase financing opportunities for the target group.
Services provided
1. identification of 500 eligible start-ups run by women (min. 350) or youth to be supported (of which 25 people with disabilities).
2. tailor-made provision of practical business know-how for effective business management, e.g. by adapting already existing DSIK/RICEM modules
3. providing solution-oriented advisory services for 500 start-ups, supported by 90 selected peer mentors
4. Improving access to finance for selected start-ups by identifying their needs and linking them to FSP
5. Facilitating access to local, regional and national markets, as well as export opportunities for the products and services of the target group
6. Creating access to technologies and innovations that contribute to business growth and improved productivity.
7. networking of the supported start-ups, e.g. those with high potential, local and national business support institutions to sustainably consolidate the interventions.
