Rwanda's MSME Growth Symposium Launches Financing and Sustainability Initiative

A Landmark Event for Rwanda’s MSMEs

The Micro, Small, and Medium Enterprises (MSME) Growth Symposium took place on Thursday, October 2, marking a significant milestone in the effort to support and grow Rwanda’s entrepreneurial ecosystem. 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 was held at the Kigali Convention Centre under the theme “Driving a thriving entrepreneurship ecosystem in Rwanda.” The symposium brought together a diverse group of stakeholders, including policymakers, researchers, private sector leaders, development partners, financial institutions, students, and entrepreneurs.

One of the key highlights of the symposium was the launch of AFR’s first-ever “Rwanda MSME FinMap 2024,” a comprehensive report assessing 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%. Overall, the report shows 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.

Addressing Challenges and Unlocking Opportunities

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

Iyacu also cited the National Institute of Statistics of Rwanda’s (NISR) research, which indicates that 99.8% of businesses in Rwanda fall into the MSME category, describing them as the backbone of the country's economy. He noted that MSMEs are key drivers of innovation, job creation, and inclusive growth, contributing significantly to improving 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 Collaboration

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. This underscores the critical role that MSMEs can play in achieving the government’s job creation target when supported effectively.

Ivan Ntwali, Country Director of Mastercard Foundation Rwanda, emphasized the role of MSMEs in achieving this goal by bridging financial gaps, managing resources, 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. “Success for this MSME Growth Symposium will be delivered when a young woman finds the right product, in clear language, submits a short digital application, receives a timely decision, and depends on repayment schedules according to the reality of her business,” Ntwali said.

Financing Gap and Collective Efforts

Alexis Kabayiza, Chief Technical Advisor for MINICOM, emphasized that unlocking capital for MSMEs is not just a financing issue but a government priority. He stated, “When MSMEs have access to finance, our economies become strong, more resilient, and better able to withstand shocks.” He added that success will come through collective efforts, as no single actor can unlock the potential of SMEs. It requires collaboration between the government, private sector, investors, development partners, financial institutions, and entrepreneurs.

Panel Discussions and Reports

The symposium featured panel discussions on MSME financing, presentations 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 valuable data for designing effective strategies.

Customized Solutions for MSMEs

Reflecting on the need to bridge the gap between access to finance and collaboration between financial institutions and MSMEs, Alice Nkulikiyinka, the Country Director for BPN Rwanda, noted that financial institutions should evaluate MSMEs individually rather than using a one-size-fits-all model. She emphasized the importance of understanding different industries, as the needs of the creative industry differ from those of agriculture. “There is work that can be done. It may sound like a big investment or a lot of work, but the return on investment is huge, and that is what we need to be focusing on,” Nkulikiyinka said.