Rwanda Nguriza Nshore is a five-year, $14.9 million program funded by USAID that will drive the growth of small and medium enterprises in Rwanda and create non-farm jobs for rural Rwandans. To foster growth in small and medium enterprises (SMEs) across Rwanda, Nguriza Nshore will work across three complimentary areas of the market ecosystem – improving the capacity of financial institutions to lend to SMEs, attracting private and commercial investment in agribusiness
Rwanda’s economic outlook is strong and positive. An increasingly attractive investment climate makes Rwanda a favorable environment for startups, entrepreneurship, technology-driven businesses and innovation—and this rapidly advancing private-sector ecosystem has the ability to deliver on the Rwandan government’s promise of prosperity and opportunity for its citizens. Despite this environment, structural challenges continue to constrain small and medium sized enterprise growth and potential, particularly in critical areas such as access to finance, business growth and profitability, and job creation.
Rwanda is one of the most rapidly transforming countries in Central and East Africa. Since the 1994 genocide that tore the country apart, Rwanda has rapidly reformed itself economically and socially with the aim of becoming a middle income, services-based country like Israel or Singapore. With high annual gross domestic product (GDP) growth rates averaging 7.6 since 2000, aggressive government programs to radically restructure specific sectors like agriculture, export, and financial services, and a transformation of its business enabling environment that included the improvement of dozens of business policy and administrative procedures, allowing Rwanda to leapfrog from 190 to 41 on the World Bank’s Doing Business Survey, Rwanda has become a more desirable place for local, regional and international investors.
As part of its start-up for the Feed the Future-funded Rwanda Nguriza Nshore project, DAI conducted a Banking and Investment Analysis (BIA). The aim of the analysis is to examine the Rwandan banking and investment ecosystem to identify partners and opportunities where the project can focus and leverage its resources including technical assistance, strategic funding for pre-investment support, and de-risking instruments to scale and expand finance for small and medium enterprises (SME) and agribusinesses. Specifically, the analysis aims to identify opportunities that enable the project to leverage at least $15 million in new debt financing for SME and agribusinesses and at least $30 million in new investment that will lead to increased profitability, and recruitment of 30,000 new hires by firms receiving investment. read more here