Rwandan women and youth in the tourism and hospitality industry will be able to access an affordable financing facility worth up to Rwf130 million, to grow and expand their business through a programme that seeks to boost job creation in the country’s largest income-generating sector.

Dubbed ‘Kataza Program’, the financing facility put in place by I&M Bank (Rwanda) Plc. in partnership with MasterCard Foundation and Development Bank of Rwanda (BRD), was launched on World Tourism Day, under the theme "Celebrating Sustainable Growth in Rwanda’s Tourism and Hospitality Industry”, marked on September 27.

The facility seeks to extend financing at a lower interest rate of 9 percent, no commission and fees, and without collateral. The low interest rate compared to the market level is incentivized by Mastercard Foundation, according to officials.

Gertrude Majyambere, the Partnerships Manager at I&M Bank (Rwanda) Plc, said the incentivized facility aims to provide affordable funding to actors in tourism industry especially those operating in rural areas and secondary cities.

Criteria revolves around every young person and woman operating in the tourism sector, in accommodation, tour and travel business, bars, and restaurants, among others, that can show the viability of the business, she said.

"The end result is creating dignifying and fulfilling jobs for youth and women. Our target is to have 12,500 jobs in three years through financing around 500 SMEs. It is very much possible because we are building from experience of past initiative in addition to skills provision and the affordable financing facility we are extending,” Majyambere added.

She noted that this facility comes in to further enhance the government’s effort in propping up tourism, offering diversification by financing innovative initiatives.

Yves Ngenzi, the Director General of Rwanda Tourism Chamber, said that this initiative comes in to bridge the financing gap in the tourism industry that is considered a risky investment destination.

He emphasized that this will particularly benefit youth and women running small and medium sized companies that make up 80 percent of Rwanda’s tourism sector, helping them to make meaningful investment to grow and graduate to medium and large companies in the economy.

Asked whether the efforts to boost domestic tourism have yielded results, Ngenzi said that much as there is commendable improvement in mindset shift and uptake, it cannot yet offset a gap in revenues generated from foreign tourists in case of global travel restrictions.

However, he said this means there is still potential to reach and attract more tourists from across the continent while diversifying tourism attractions in the country.

Jamila Gashaka Uwimana, a tourism professional and General Manager at heritage Safaris Ltd, believes that this programme is coming to bridge the gap of financing that most SMEs face, especially young people and women with creative ideas that can boost the industry once implemented.

"When they reach out to government or non-profit organizations, it often takes long to access the financing, but I find this as one of the quickest and flexible way to source the necessary funding that allows companies to actually reach profitability.”

She added that there are available resources and programmes that tourism operators can tap to improve their business skills for not only profitability but also sustainability.

Michaella Rugwizangoga, the Chief Tourism Officer at Rwanda Development Board, said that the past 20 years have seen sustainable growth in the tourism industry with $620 million revenue generated in 2023, posting significant economic growth for local communities.

"We are proud of the role the youth and women are playing in shaping the tourism sector. Two initiatives –Kataza Program and our partnership with African Parks –showcases how sustainability and community development go hand-in-hand,” she noted.

Through the tourism revenue sharing programme, the government has disbursed Rwf12 billion in 1,000 projects such as schools, hospitals, among others, in communities around Volcanoes National Park.