Rwf2.3bn devt fund for SMEs, co-operatives unveiled

A new project that seeks to fund development-oriented initiatives in agro-processing, ICT, tourism and services, and handicrafts has been launched in Gakenke District. The €2.4 million (about Rwf2.3 billion) Local Competitiveness Facility by the Belgian Development Co-operation (BTC) will be implemented in Gakenke, Gisagara, Nyagatare and Rutsiro districts and monitored by the Local Development Agency. Speaking at the launch of the facility, Odette Uwamariya, the Ministry of Local Government permanent secretary, said the initiative is in the government’s line of promoting the welfare of the masses. “Government programmes, like the second Economic Development and Poverty Reduction Strategy (EDPRS II), and Vision 2020, all aim at improving the wellbeing of Rwandans, reducing poverty in the country and ensuring sustainable growth. So, the new fund will help realise these objectives,” she said at the event, which attracted co-operatives, small-and-mediun enterprises (SMEs), local leaders and Belgian embassy officials. Uwamariya added that districts’ medium-term development plans seek “to lift people out of poverty” Uwamariya said the project will stimulate partnership between large, medium, small and micro enterprises and co-operatives, as well as promote value chain development by reducing cost and risk, and meeting pro-poor development objectives. Officials said each district will receive €600,000 (about Rwf570 million) of the €2.4 million fund to finance ventures in agro-processing, handicrafts, tourism, and ICT sector in the four districts. The facility targets small firms, co-operatives, Technical and Vocational Education and Training (TVET) graduates, and other groups that do not have easy access to finance. Under the project, businesses, worth between Rwf5 and Rwf10 million, will raise 10 per cent of their funding needs to get a grant of 90 per cent. Those worth between Rwf10 and Rwf40 million will raise 30 per cent and receive 70 per cent worth of grant cover. Uwamariya urged beneficiaries to use the grants to expand their businesses, noting that they should consider the support grants come as an enabler to improve their businesses and livelihoods. Speaking at the event, Johan Debar, the Minister Counselor for development co-operation at the Belgian embassy in Rwanda, said the project will create new jobs and improve the income levels of beneficiaries. “This grant will give businesses that, normally, do not have easy access to funding, an opportunity to grow and contribute to the economy,” he said. He said Belgium disburses $40 million annually in development support to Rwanda that go into health, energy (including reforestation and biomass production), and decentralisation. Northern Province governor Claude Musabyimana hailed Belgiun for supporting different projects in the area, saying they laid foundation for sustainable development of the country. “There are some projects that were started when we were just starting to rebuild the country following the 1994 Genocide against the Tutsi,” he said. He urged leaders and beneficiaries to manage the grant well to ensure social development. Expectations Gakenke mayor Deogratias Nzamwita said there are about 180 co-operatives in his district, mainly for youth and women, that could benefit from the grant. He said the district will help the groups to prepare good projects and qualify for funding, adding that the grant will help accelerate development in the district. Daniel Nizigiyimana, the president of Natural Healing Centre in Gakenke, said the project was timely, noting that it will enable ventures like his to secure funds to expand. Meanwhile, co-operatives in Gakenke took the opportunity to showcase their products during the event. The groups exhibited agro-produce, handicrafts, clothes, and bottled juices. Under EDPRS II, Rwanda targets to achieve 11.5 per cent growth rate annually, and reduce poverty to below 30 per cent as the country moves toward achieving a middle-income status by 2020.

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Rwf2.3bn devt fund for SMEs, co-operatives unveiled