Former street vendors in Kigali will receive loans at a two per cent interest rate per year to support their businesses, in addition to mini-markets that are being set up for them.

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The vendors will be given trade stands in the markets free of charge and are exempt from hygiene and sanitation fees, as well as trading license taxes, for one year.

Two more mini-markets for the vendors were launched on January 9, in a commercial area commonly known as ‘Quartier Mateus’ in the Central Business District (CBD) in Nyarugenge District. The district has so far eight markets with 1,691 street vendors.

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So far, the City of Kigali has set up 30 mini-markets accommodating 4,158 former street vendors.

Claudine Nyinawagaga, Director General of the Local Administrative Entities Development Agency (LODA), said: "The vendors include mothers, youth and others with the will to work hard and avoid the vice of begging. However, they have financial challenges due to a lack of enough capital to do business. We have to build their financial capacity and literacy and give them loans at a two per cent interest rate per year.”

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She said the finance at a lower interest rate will be provided under the VUP programme. Vision Umurenge Programme (VUP)—which was introduced in 2008—is an integrated local development programme to accelerate poverty eradication, rural growth, and social protection.

One of the programme’s products is a microcredit scheme—a VUP financial service—where small loans at low-interest rates are extended to individuals or groups of low-income earners.

Loans provided under VUP financial services are normally paid within two years after undertaking income-generating activities.

"The vendors are not requested for any collateral, and they will be trained on financial literacy as they form savings and loan groups among others,” Nyinawagaga said.

In 2016, the City of Kigali began relocating street vendors to small markets. During that year, the city documented 12,197 street vendors, with 5,058 in Nyarugenge District, 5,149 in Gasabo, and 1,990 in Kicukiro District.

Close to Rwf1 billion was spent in the 2022/23 fiscal year to support street vendors, including the construction of new markets for them.

Martine Urujeni, Vice-Mayor of City of Kigali, said: "The mini-markets provided free of charge and finance at lower interest rates aim to motivate street vendors to give up peddling and pave the way for formal trade.”

She said the city is carefully choosing recipients to prevent fraudulent access to the financial aid.