The government has pledged to step-up efforts aimed at supporting small-and-medium enterprises (SMEs) to grow and become sustainable.

According to Alex Ruzibukira, the director general for industries and SME development at the Ministry of Trade and Industry, the government will support capacity building initiatives in the sector, and link SMEs with credit institutions, and better markets.

Ruzibukira said more resources will be invested in developing the SME cluster programme, adding that the ministry will work with the private sector to find ways of improving the SME sector.

Ruzibukira made the remarks during the SME national forum organised by the Ministry of Trade and Industry in Kigali on Tuesday. The forum brought together about 200 stakeholders and SME clusters from the leather industry, textile manufacturing and agro-processing.

The Rwanda SME sector makes up 99.9 per cent of total businesses in the country and account for 50 per cent of private sector value-added, and 41 per cent of private sector employment.

However, the sector is still threatened by the limited access to credit, lack of skills and innovation that are hindering its capacity of the majority of SMEs to grow and become sustainable businesses, according to Ruzibukira.

He said the ministry has initiated different programmes to support small businesses, including the SME clustering programme, the Hanga Umurimo, and the annual Handicraft Excellence Awards programme.

"The ministry has also set up an SME forum through which stakeholders from the private and public sectors, as well as the civil society meet and discuss issues affecting SMEs.

Meanwhile, Alice Uwingabiye, the SME forum co-ordinator at the Ministry of Trade and Industry, has challenged sector players to embrace value-addition, arguing that this will help create more jobs for Rwandans besides improving their earnings.

According to Agnes Uwera, an SME expert, processing increases market share of SMEs locally and globally.

"SME development is key to achieving the objectives of the second Economic Development and Poverty Reduction Strategy (EDPRS II), Vision 2020 and the Sustainable Development Goals. However, there are still many challenges slowing down the growth of SMEs and the rate at which they can impact on development,” she noted.