SMEs solving youth unemployment in Rwanda
Sunday, October 27, 2024
Alice Nkulikiyinka, the Managing Director of the Business Professional Network (BPN) speaks at the launch Bridge Talent Fair, on Thursday, October 24. Courtesy

With growing populations in Africa, youth unemployment continues to be a challenge in many countries, with governments grappling with the question of how to produce enough decent and secure jobs.

In Rwanda, the unemployment rate among the youth stood at 20.5 per cent as per quarter two 2024 data from the National Institute of Statistics of Rwanda.

While big corporate companies are traditionally considered a source of decent employment, Small and Medium Enterprises (SMEs) have emerged as substantial job creators in Rwanda.

According to the Ministry of Trade and Industry, MSMEs in Rwanda account for 98 per cent of all businesses, employing over 2.5 million people and contributing about 33 per cent to Rwanda's Gross Domestic Product (GDP)

Despite these figures, SMEs are not seen as attractive sources of employment especially by the youth who dream of building careers in big corporate brands.

To break this notion, Business Professionals Network (BPN) Rwanda in partnership with the Ministry of Public Service and Labour (MIFOTRA), Mastercard Foundation, and Harambee, organised the first-ever SME Job Fair dubbed 'The Bridge Talent Fair' held in Kigali, on September 24.

According to Alice Nkulikiyinka, BPN Rwanda's Country Director, the initiative was designed to connect and bridge the gap between young job seekers in Rwanda and SMEs.

"The Bridge Talent Fair initiative is designed to connect the youth with high-performing SMEs in the country for significant job opportunities," Nkulikiyinka told the New Times.

Nkulikiyinka noted that SMEs form the backbone of Rwanda's economy and provide most jobs. She urged young people to consider them as sources of decent and sustainable jobs.

For Diane Izabayo, the Director of Programs at BPN Rwanda, the initiative came as a solution for challenges faced by both SMEs and the youth.

"In our experience working with entrepreneurs, we realised that they have challenges getting and retaining good talent, while on the other hand, young people have always complained of lack of decent jobs. This initiative came to bridge the gap and offer solutions to both challenges." Izabayo told the New Times.

Izabayo was hopeful young job seekers would walk away with potential job offers after meeting and having interviews with the entrepreneurs at the fair. BPN Rwanda has a monitoring and evaluation mechanism to follow up on placements and measure the impact of the initiative.

During the event, three youths shared their experiences working with various SMEs. They include Musa Moore Mukiibi who worked for more than 10 years at Digitec Studios Rwanda, and later started his own photography business, Daniella Kamugisha who built a solid career at Wood Habitat and is currently Head of Business Development in the company, and Steven Kanyarwanda, a person with disability, who also secured a job at Stafford Coffee Brewers.

According to Francois Ngoboka, the Chief Skills Officer at MIFOTRA, the initiative is timely and aligns with the governments' goal to create jobs.

"The Bridge Talent Fair initiative aligns well with the National Strategy for Transformation (NST2) goal to create 1.25 million productive and decent jobs, focusing on opportunities for youth and women," Ngoboka told the New Times, adding that SMEs are a huge contributor to job creation in the country.

Studies have shown that skill mismatch is one of the main reasons for high unemployment rates among the youth.

According to Joel Rugagi, the Senior Account Manager at Harambee, a youth employment accelerator, young people need support to be well prepared for the job market.

"We build the capacity of young people by giving them basic skills that will help them secure entry level positions in the job market,” Rugagi said, adding that Harambee engages with employers to understand their talent needs.

Rugagi noted that the talent fair was a good opportunity for employers to meet young people who had been trained at Harambee and are ready for the job market.

Inclusive employment

While creating job opportunities for the youth, the question of inclusive employment is crucial to ensure that people with disabilities and people without disabilities all have equal employment opportunities.

In Rwanda, the overall unemployment rate among persons with disabilities is high, at 29.2 per cent, compared to 12.9 per cent of persons without disabilities.

According to Emmanuel Izere, the inclusive employment officer at the National Union of Disabilities' Organisation in Rwanda (NUDOR), persons with disabilities face several challenges while seeking employment.

Alice Nkulikiyinka, the Managing Director of the Business Professional Network (C) and other officials during the launch

"Persons with disabilities face four major challenges while seeking employment, including attitudinal barriers, accessibility challenges, policy and educational barriers,” Izere said.

He noted that while supportive policies are in place, implementation of these policies must be enforced to ensure inclusive employment in Rwanda.

Herve Niyomwungeri, a young person with disability, called on employers to give people with disabilities a chance to prove themselves at the workplace.

"Employers need to know that people with disabilities have their own unique ways of adapting to different environments and can work and deliver good if not better results than people without disabilities," Niyamwungeri told the New Times.

For Stafford Rubagumya, the Managing Director at Stafford & Family Business Company LTD, employers should be intentional about inclusive employment.

"Any business that is not inclusive is not sustainable. Employers must be intentional about employing people with disabilities, it is doable," Rubagumya said.

Tackling the challenge of youth unemployment can be a daunting task. However, establishing strategic partnerships and ensuring that the youth are not only prepared for the job market, but are aware of the available opportunities, is a step in the right direction.

BPN Rwanda, Mastercard Foundation launch Bridge Talent Fair to promote inclusive, dignified employment for Rwandan youth, on Thursday, October 24. Courtesy