The government has set aside Rwf500 million to fund agribusiness projects by university graduates, the Capacity Development and Employment Services Board (CESB) has said. The move is part of efforts geared at enhancing support to scalable and profitable agribusinesses operated by young graduates to support entrepreneurship and job-creation along the agriculture value chain as well as attract more youth into the sector.

CESB is under the Ministry of Public Service and Labour (MIFOTRA). It coordinates and oversees capacity development, strategic human resources planning and development. It also aadvises on how to match human resources with employment opportunities. The board is also mandated to coordinate National Employment Programme (NEP) commonly known as Kora Wigire and has come up with interventions tailored to support university graduates in the agriculture sector.

Antonia Mutoro, the Director General of the board, told Business Times that the board called for graduates with promising agribusiness projects to submit them to CESB offices in respective districts by the end of this month. The start-ups and business ideas will be reviewed by experts and the best ones will be selected for funding by December.

"At least 60 agribusiness projects will be supported by Rwf500 million this fiscal year. This intervention supports other efforts by banks, Business Development Fund (BDF) and the agriculture ministry. Those institutions have a funding package for such projects, but we have also introduced the ‘special support’ as the board,” he said.

He explained that the beneficiary start-ups will be provided business mentorship and trained on top of linking them with other successful projects so that they learn how to manage the venture and ensure they grow and become sustainable.

"Projects must have potential to create jobs along the value chain through value addition to products like bananas or honey, among others. We have already approved 16 projects that meet this criterion. So, we are targeting a total of 76 agribusiness youth projects,” he explained.

Making agric attractive to youth

The new scheme seeks to attract youth into the agriculture value chain through initiatives that promote agribusiness and job-creation in the sector. Recently, State Minister for Agriculture Fulgence Nsengiyumva told Business Times that the ministry has started deploying fresh agriculture university graduates in different parts of the country to support farmers. The demographic structure of Rwanda is characterised by a youthful population yet the average age of farmers in Rwanda is 55 years old. Each year, over 300,000 Rwandan youth enter the country’s labour markets, according to official figures.

Who qualifies for funding?

According to Mutoro, to qualify for funding the projects must be owned by Rwandan university graduates and with the capacity to employ other youth. The projects should be in line with district economic programmes especially agro-processing and farming related ventures. They should also be using innovative ways to add value to local products. They must be existing start-ups with under three years of operation.

Employment promotion

"The graduate’s projects must have potential to give jobs to other people for employment promotion and increasing productivity. The support is expected to help address the challenge of youth unemployment by developing agriculture value chains by engaging skilled youth to transform the agriculture sector,” Mutoro said.

The investment facility scheme is expected to increase graduates self-employment and income though promotion of in market oriented agriculture production and value addition.

It will also strengthen modern farming as well as help link farmers to markets.

A recent survey by the National Institute of Statistics of Rwanda indicated that general unemployment rate stands at 16.7 per cent, while youth unemployment is at 21 per cent. About 45.9 per cent of the youth work in the agricultural sector whereas 39.8 per cent work in service sector.

Rwanda’s Vision 2020 seeks to transform the economy from a low productivity agricultural economy to a knowledge-based economy through transformation of agriculture sector as "the engine of economic growth” and promoting youth employment.

Youth in agribusiness speak out

Jean Baptsite Hategekimana, the chairman of Rwanda Youth in Agribusiness Forum, said the group has so far registered over 1,500 youth, mostly university graduates. He welcomed the new scheme to support youth involved in agribusiness, saying many would be agro-entrepreneurs do not have enough start-up capital.

"The scheme is timely since some of us have good business projects but lack financial support to implement or expand them. It will, therefore, enable such youth to acquire the necessary funds to implement and commercialise their enterprises and hence boost entrepreneurship and increase their income as well as create jobs for other people,” he said.

Hategekimana explained that the forum is composed of both university graduates and non-graduates. He said this group should also be supported to exploit their full potential.

Jean Paul Ntezimana, a university graduate from Northern Province and owner of a wine-making project, welcomed the initiative, saying that he will submit his business proposal of his new start-up company for consideration.

The venture also processes donuts from sweat potatoes and targets to expand and produce bio-ethanol in the future.