How BDF support turned former street vendor into a top metal fabricator in Rwamagana

He was a simple fruit vendor that most people in Rwamagana town residents commonly referred to as the “Scrap Boy”. But like the bible says, the downtrodden will be lifted up. Now Musa Kabagambe is a model businessman and top metal fabricator in Rwamagana District. The entrepreneur has managed to turn scrap metal into a multimillion business. The fabricator is building a mega family home using money from the business. / Timothy Kisambira. The 32-year-old former street vendor was able to transform his life and his metal fabrication venture using financial support from Business Development Fund (BDF). The young man boasts of huge artisanry skills that have enabled him to make valuable products from abandoned scrap materials. Kabagambe has overtime perfected these skills and is now considered by many as a professional welder. Indeed, a visit to his workshop testifies to this as the place is abuzz with activity as fabricators and clients mingle. The artisan makes metallic doors and window frames, beds and other household furniture. Starting out Kabagambe had tried out different ventures as a street vendor after dropping out of school so he could put food on the table. “I was not able to continue with education because of lack of school fees. Therefore, I decided to join street vending, selling different items. At times, I would wash people’s cars and also collected scrap for sale,” Kabagambe narrates. It is here that one of the many friends he had made encouraged him to join a Technical and Vocational Education and Training (TVET) institute to acquire “lifelong” skills. Like a person destined for great things, Kabagambe, a resident of Kigabiro sector in Rwamagana, enrolled for a welding and metal fabrication course at a nearby TVET. This marked the beginning of his transformation from a street vendor and scrap metal collector toward realisation of his dream as a fabricator. “The practical course sharpened my skills, giving me a competitive advantage as an accomplished professional compared to those that study on-the-job,” he says. When he completed the course in 2011, he set up a metal welding and fabrication workshop to “put into practice the knowledge I had acquired while at Workforce Development Authority training centre.” However, as a new TVET graduate he lacked startup capital and was even forced to sell his old bicycle. but still the money was not enough. BDF support As he was still struggling to raise money for the project, Kabagambe was advised by one of his colleagues to pitch the business idea at Business Development Fund (BDF) for financial support. Luck was on his side that the project idea was approved, which qualified for Rwf1 million loan, including a grant of Rwf500,000. “I was able to buy all the equipment required to set up a modern fabrication workshop. Then I contacted a friend who had more experienced and kick-started the enterprise.” Because he employed experienced staff, he was able to attract more customers, which ensured the business got profits to push it to the next level. Achievements He says, he does not regret taking on TVET as the choice has made him a re-known welder in Rwamagana. From selling his only bicycle, Kabagambe earns more than Rwf1.5million every month thanks to his determination and courage. He employs more than 30 people and also offer internship opportunities to TVET students. He says he is thankful to BDF which believed in him when other banks turned a deaf ear to his project. Kabagambe’s biggest dream is to turn his workshop into a modern training centre to train unemployed youth and equip them with practical skills. Challenges Despite the milestones so far, the entrepreneur still faces barriers that affect the business, especially the cost of raw materials. The high cost of raw materials pushes up the final price and affects people’s purchasing power, he adds. “This leaves us with no choice but to sacrifice and take the marginal profits which affects business growth and sustainability.” He says competition has also increased with more fabrication businesses coming up. Kabagambe’s business has also taken a hard hit from imported products leaving him with limited alternatives. “This is a big problem because most clients still prefer to import products despite the fact that some of the products are manufactured locally,” he notes. He is, however, optimistic that the Made in Rwanda campaign will help boost businesses like his going forward. Advice to the youth He urges unemployed youth to embrace TVET, adding that those with bankable projects should approach banks for funding to implement their ideas and drive self-employment across the country.

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How BDF support turned former street vendor into a top metal fabricator in Rwamagana