Kigali Launches MSME Growth Symposium to Tackle Finance and Sustainability Challenges

A Landmark Event for Rwanda’s MSMEs

The inaugural Micro, Small, and Medium Enterprises (MSME) Growth Symposium took place on Thursday, October 2, at the Kigali Convention Centre. Organized by Access to Finance Rwanda (AFR), in collaboration with the Government of Rwanda through the Ministry of Trade and Industry (MINICOM) and the Mastercard Foundation, the event aimed to address the challenges faced by Rwanda’s MSMEs while exploring pathways for growth and resilience. The symposium was held under the theme “Driving a thriving entrepreneurship ecosystem in Rwanda,” bringing together a diverse group of stakeholders, including policymakers, researchers, private sector leaders, development partners, financial institutions, students, and entrepreneurs.

Key Findings from the Rwanda MSME FinMap 2024

One of the highlights of the symposium was the launch of AFR’s first-ever “Rwanda MSME FinMap 2024.” This report provides a comprehensive assessment of MSMEs’ access to and use of financial services in Rwanda. According to the findings, 38% of MSMEs identified access to finance as their biggest challenge, followed by the cost of finance at 32.2%, operating space at 25%, lack of market access at 24%, and internet at 23.4%, among others. Overall, the report indicates that 83% of MSMEs in Rwanda are financially included, with 75% accessing services through formal, regulated institutions, while 32% rely on informal financial services such as community-based savings groups.

Strengthening Collaboration and Addressing Challenges

Jean-Bosco Iyacu, CEO of Access to Finance Rwanda, emphasized the importance of the symposium as a platform for sharing research insights and evidence, practical experiences, and working practices to inform strategies and initiatives. He highlighted the need for stronger collaboration between non-governmental institutions, the private sector, development partners, financial institutions, and entrepreneurs to address challenges and unlock new growth opportunities for MSMEs.

Iyacu cited research from the National Institute of Statistics of Rwanda (NISR), which indicated that 99.8% of businesses in Rwanda fall into the MSME category, describing them as the backbone of the country's economy. He underscored the role of MSMEs as key drivers of innovation, job creation, and inclusive growth, as well as contributors to economic resilience and poverty reduction. However, he pointed out that despite their potential, MSMEs continue to face challenges that hinder their growth and scaling capabilities, particularly access to capital and business growth support.

Government and Private Sector Partnership

In its National Strategy for Transformation Two (NST2), the Government of Rwanda aims to create 250,000 jobs annually and at least 1.25 million decent (productive) jobs for Rwandans by 2029. According to the released report, MSMEs employ over 712,000 people, with more than 213,000 of them being women. Once supported, MSMEs can play a significant role in achieving the government’s job creation target.

Ivan Ntwali, Country Director of Mastercard Foundation Rwanda, emphasized the role of MSMEs in achieving this goal by bridging financial gaps, improving management, and developing policies based on research evidence. He stressed the importance of leveraging technology in transactions, data gathering, and increasing women-led initiatives to ensure success for MSMEs.

Financing Gap as a Major Barrier

Alexis Kabayiza, Chief Technical Advisor for MINICOM, highlighted that unlocking capital for MSMEs is not just a financing issue but a government priority. He emphasized that when MSMEs have access to finance, economies become stronger, more resilient, and better able to withstand shocks. He called for collective efforts from all stakeholders, including the government, private sector, investors, development partners, financial institutions, and entrepreneurs.

Panel Discussions and Reports

The symposium featured panel discussions on MSME financing, a presentation for the Data for Growth Report under the Finance S’Engage Initiative led by Entrepreneurial Solutions Partners (ESP), and a presentation on Central Bank Policies and Regulations affecting Agri-SMEs Financing by ACELI Africa. These reports provided an in-depth view of both demand, supply, and the regulatory side of MSME financing, offering data needed to design effective targets.

Call for Customised Solutions

Alice Nkulikiyinka, the Country Director for BPN Rwanda, reflected on the need to bridge the gaps between access to finance and collaboration between financial institutions and MSMEs. She noted that financial institutions should look at MSMEs individually, avoiding a one-size-fits-all evaluation model, as all MSMEs have different potentials and operation models. She emphasized the importance of understanding different industries and investing in tailored solutions, which can yield significant returns on investment.