Fintech leaders have encouraged Micro, Small and Medium Enterprises (MSMEs) operators to leverage digital commerce platforms to accelerate growth as they deliver quality services.

In light of Covid-19 outcomes, figures show that there has been an uptake in the use of online platforms to deliver services to a wider market, as much as service providers had to adjust with preventive measures put in place.

This was discussed during the iHUZO public-private dialogue that brought together leaders from public and private sector, policymakers, influencers, and key stakeholders in the e-commerce ecosystem on October 14.

They discussed the different challenges MSMEs are facing and the role of digital platforms in enhancing service delivery, innovation, and financial growth.

iHUZO project is a Covid recovery response project of Access to Finance Rwanda (AFR) that aims at accelerating the growth of micro and small enterprises by expanding the e-commerce sector in Rwanda.

Data from iHUZO project show that currently, at least 596 MSMEs on-boarded e-commerce platforms while there are 521 iWorkers (potentially people who make a living through digital platforms).

The minister of ICT and innovation, Paula Ingabire said that "this is definitely good progress depending on where we are coming from, but it’s important as we reflect on what the future looks like, to also understand the task at hand.”

She pointed out that the number of MSMEs using e-commerce does not even represent 10 per cent of the size of the SMEs present.

Adding that as more MSMEs are going digital, "it’s not just a question of giving them digital tools but understanding whether these tools are coming to address whatever challenges they have.”

Of the highlighted challenges that hinder the uptake of e-commerce, there is trust, high costs and digital illiteracy, among others.

Jean-Bosco Iyacu, Chief Executive Officer of AFR, said, "it has become clear that the value propositions of digital adoption and digital commerce are higher for the society at large by providing continuity of delivery of essential services and goods, and by offering contactless, cashless transactions in very critical times.”

He added "As we move forward, we need to improve the digital and trading infrastructure, facilitate digital payments and establish appropriate regulatory frameworks for digital commerce.”

Alex Ntale, Chief Executive of Rwanda ICT Chamber said they are giving small businesses and especially iWorkers, a platform to share their experiences as one of the new labor markets that immense opportunities for Rwandan youth.

However, he said there is still a need to create more awareness and educate the community about digitalization benefits such as online presence, digital payment services, among others.

iHUZO Project has a target to bring 1500 local businesses on-board of digital ecosystem and 2000 iWorkers’ livelihoods improved or created.

It is projected that in Africa, up to 88 million young adults entering the workforce by 2030 may be iWorkers.

Prince Nzayisenga, a digital marketer shared his testimony about how he was forced to shut down his company and started online freelancing jobs, after a while, he thought of possibility of launching his own platform where he shares contents.

He said that it paved a way for survival during lockdown periods and that he now earns between $600 and $1000 per month, with a stable clientele across the world.

Marie-Jeanne Benimana, Kasha agent urged the youth to take advantage of digital opportunities and to not despise any job position.

"I started working as a digital ambassador at Kasha earning Rwf1400 per month and now I can earn Rwf1.5 million per month,” she gave an example.

Different stakeholders in banking, fintech companies and public sector shared on their contribution in availing digital services and the ease of access to finance for the uptake of women and youth especially.

Panel discussion during the iHUZO public-private dialogue.

iHUZO project is a Covid recovery response project of Access to Finance Rwanda (AFR) that aims at accelerating the growth of micro and small enterprises.

The minister of ICT and innovation Paula Ingabire delivers remarks during the iHUZO public-private dialogue in Kigali on October 14.

Delegates interact during the meeting in Kigali.