REPUBLIC OF RWANDA
MINISTRY OF TRADE AND INDUSTRY
Entrepreneurship Development Policy
Developing an effective entrepreneurship and MSME ecosystem in Rwanda
April 2020
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FOREWORD
In the last decade, entrepreneurship has become one of
key components of economic and business development
policies. Its relevance has increased as entrepreneurs
are associated with the ability to create new products,
new services and to innovate. There is a large growing
body of research that shows the interrelation
and interdependence between entrepreneurship,
innovation and economic development. Today, women
and men entrepreneurs have a prominent role in
driving innovation, economic growth, welfare, as well
as a notable impact on job creation. Entrepreneurs are
frequently thought of as national assets to be cultivated,
motivated, and remunerated to the greatest possible
extent. Great entrepreneurs have the ability to change
the way we live and work. If successful, their innovations
improve standards of living, create wealth and contribute
largely to a growing economy. In line with Rwanda’s
vision to become an upper middle-income country by
the year 2035 and to reach high-income status by 2050,
there is no doubt that entrepreneurship will be one
of the key drivers in reducing poverty, promoting social change, fostering innovation and economic
transformation.
Rwanda’s Entrepreneurship Development Policy (EDP) intends therefore to provide an overarching
ecosystem to support entrepreneurs with a conducive environment for private sector dynamism,
innovation and risk-taking required for a modern, sophisticated, and rapidly growing economy. It
builds on the existing policies and reforms undertaken by the Government and holistically seeks
to address the gaps within Rwanda’s entrepreneurship ecosystem. While important government
policies promote private sector development more broadly in various sectors, the EDP reinforces,
and complements the existing policies and strategies towards achieving increased entrepreneurship,
business growth, and job creation in Rwanda.
In designing this policy, extensive stakeholder consultations were conducted with central and local
governments in all provinces, entrepreneurs from start-ups and Micro, Small, Medium and Large
Enterprises, the Private Sector Federation (PSF), Financial Institutions, local and international investors,
business consultants, academia, incubators, accelerators, and Development Partners.
The Government of Rwanda, through the Ministry of Trade and Industry, wishes to commend the US
Government for the constant support in the development of the EDP, via its USAID Rwanda Nguriza
Nshore Project.
I thank all listed stakeholders for their valuable contribution, which led to the development of this
outstanding and timely policy document. I look forward to a continuous and efcient collaboration
and support to successfully implement the Entrepreneurship Development Policy.
Hon. Soraya M. HAKUZIYAREMYE
Minister of Trade and Industry
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CONTENTS
FOREWORD .......................................................................................................................................................III
TABLES AND FIGURES .....................................................................................................................................VI
ACRONYMS AND ABBREVIATIONS ............................................................................................................VII
EXECUTIVE SUMMARY ....................................................................................................................................IX
1. GENERAL INTRODUCTION ........................................................................................1
1.1 Background ....................................................................................................................................................1
1.2 Rationale for Change from SME Development Policy to Entrepreneurship Development Policy 3
1.3 Relationship between EDP and Regional and Global Strategies and Goals ....................................4
EDP and SDGs .........................................................................................................................................4
EDP and AU Agenda 2063 .....................................................................................................................5
EDP and EAC Vision 2050 .....................................................................................................................5
1.4 Relationship between EDP and other existing national policies and strategies ............................. 6
2. EDP DEVELOPMENT PROCESS .................................................................................. 8
2.1 Definitions ......................................................................................................................................................8
Entrepreneurship .....................................................................................................................................8
Firm Size Definitions ..............................................................................................................................8
High-Growth Entrepreneurship ........................................................................................................... 9
2.2 International Benchmarks...........................................................................................................................9
Singapore ................................................................................................................................................... 9
Israel ...........................................................................................................................................................10
Chile ...........................................................................................................................................................11
2.3 Development Process and Stakeholder Consultations .......................................................................11
3. VISION AND OBJECTIVES ............................................................................................13
3.1 Vision ...............................................................................................................................................................13
3.2 Policy Framework ........................................................................................................................................13
3.3 Policy Objectives ..........................................................................................................................................14
4. ANALYSIS: CONSTRAINTS TO ENTREPRENEURSHIP ..........................................15
4.1 Pillar 1: Human Capital and Management ...............................................................................................15
4.2 Pillar 2: Business Support ............................................................................................................................16
4.3 Pillar 3: Financing ..........................................................................................................................................17
4.4 Pillar 4: Business Enabling Environment ...................................................................................................18
4.5 Pillar 5: Markets and Value Chains ............................................................................................................18
4.6 Pillar 6: Technology and Infrastructure.....................................................................................................19
4.7 Pillar 7: Entrepreneurial Culture ...............................................................................................................20
5. POLICY ACTIONS ..........................................................................................................21
5.1 Policy Design Process ..................................................................................................................................21
5.2 Key Crosscutting Instruments ................................................................................................................... 21
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5.3 Feasibility and Impact of Policy Actions ...................................................................................................22
5.4 Pillar 1: Human Capital and Management ...............................................................................................23
5.5 Pillar 2: Business Support ............................................................................................................................25
5.6 Pillar 3: Financing ..........................................................................................................................................27
5.7 Pillar 4: Business Enabling Environment ...................................................................................................29
5.8 Pillar 5: Markets and Value Chains ............................................................................................................29
5.9 Pillar 6: Technology and Infrastructure ...................................................................................................31
5.10 Pillar 7: Entrepreneurial Culture .............................................................................................................31
6. IMPLEMENTATION PLAN ............................................................................................33
6.1 Current Institutional Framework .............................................................................................................33
6.2 EDP Implementation Framework .............................................................................................................33
6.3 EDP Institutional Framework ....................................................................................................................34
6.4 EDP Impact Monitoring and Evaluation ..................................................................................................35
6.5 Financial Implications ................................................................................................................................... 35
6.6 Legal and Regulatory Implications ............................................................................................................36
6.7 Implementation Matrix ...............................................................................................................................36
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TABLES AND FIGURES
Figure1: Existing Rwandan Entrepreneurship Ecosystem 1
Figure 2: Relationship between EDP and SME Development Policy 3
Figure 3: The EDP is Central to the National Policies and Strategies in Rwanda 6
Figure 4: The EDP Development Process 12
Figure 5: The Seven Pillars of the EDP 13
Figure 6: Policy Design Decision Tree 21
Figure 7: Feasibility and Impact of Policy Actions 23
Figure 8: EDP Institutional Framework 34
Table 1: Visions of the SME Development Policy and the New EDP ...................................................... 3
Table 2: Firm Size Denitions .......................................................................................................................... 9
Table 3: EDP Estimated Cost ........................................................................................................................... 36
Table 4: Summarized EDP Implementation Matrix ..................................................................................... 37
LIST OF FIGURES
LIST OF TABLES
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ACRONYMS AND ABBREVIATIONS
Agri-tech Agricultural Technology
AIMS African Institute for Mathematical Sciences
ALU African Leadership University
AU African Union Commission B2B business-to-business
BDA Business Development Advisor
BDF Business Development Fund
BDS Business Development Services
BNR National Bank of Rwanda
BRD Development Bank of Rwanda
COMESA Common Market for Eastern and Southern Africa
CORFO Corporación de Fomento de la Producción de Chile
DGIE Directorate-General of Immigration and Emigration
EAC East African Community
EDP Entrepreneurship Development Policy
EICV5 Fifth Integrated Household Living Conditions Survey 2016–2017
fintech financial technology
GEDI Global Entrepreneurship Development Index
GEM Global Entrepreneurship Monitor
GOR Government of Rwanda
HEC Higher Education Council
HI/HF Higher Impact/Higher Feasibility
HI/LF Higher Impact/Lower Feasibility
HIL Higher Learning Institution
ICT Information and Communications Technology
IP Intellectual Property
KIC Kigali Innovation City
LI/HF Lower Impact/Higher Feasibility
LI/LF Lower Impact/Lower Feasibility
LODA Local Administrative Entities Development Agency
LT Long Term
M&E Monitoring and Evaluation
MIGEPROF Ministry of Gender and Family Promotion
MINAFFET Ministry of Foreign Affairs and Cooperation
MINAGRI Ministry of Agriculture and Animal Resources
MINALOC Ministry of Local Government
MINECOFIN Ministry of Finance and Economic Planning
MINEDUC Ministry of Education
MINICOM Ministry of Trade and Industry
MINICT Ministry of Technology and Innovation
MININFRA Ministry of Infrastructure
MINISPORTS Ministry of Sports
MYCULTURE Ministry of Youth and Culture
MOOC Massive Open Online Course
MSME Micro, Small, and Medium-sized Enterprise
MT Medium Term
NAEB National Agricultural Export Development Board
NCPD National Council of Persons with Disabilities
NIRDA National Industrial Research and Development Agency
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NISR National Institute of Statistics of Rwanda
NST1 National Strategy for Transformation
OECD Organization for Economic Co-operation and Development
PSDYE Private Sector Development and Youth Employment Strategy
PSF Private Sector Federation
R&D Research and Development RAB Rwanda Agriculture Board
RBA Rwanda Bankers Association
RCA Rwanda Cooperative Agency
RDB Rwanda Development Board
REB Rwanda Education Board
REG Rwanda Energy Group
RGB Rwanda Governance Board
RISA Rwanda Information Society Authority
RP Rwanda Polytechnic
RPPA Rwanda Public Procurement Authority
RRA Rwanda Revenue Authority
RSB Rwanda Standards Board
RSE Rwanda Stock Exchange
RWF Rwandan Franc
SACCO Savings and Credit Cooperative Organization
SDG Sustainable Development Goal
SME Small and Medium-sized Enterprise
SPRING Standards, Productivity, and Innovation Board
ST Short Term
STEM science, technology, engineering, and mathematics
SUP Start-Up Chile
SWG Sector Working Group
SWOT Strengths, Weaknesses, Opportunities, and Threats
USAID U.S. Agency for International Development
WDA Workforce Development Authority
YCA YouthConnekt Africa
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EXECUTIVE SUMMARY
Support to entrepreneurship—creating conditions for growth of vibrant and competitive
enterprises across all sectors of the economy—is a critical element in achieving the
Government of Rwanda’s (GOR) ambitious growth and competitiveness objectives as
laid out in the Vision 2050 document, which sets a target of achieving an upper-middle-income status
by 2035 and a high-income status by 2050. The National Strategy for Transformation (NST1), the
Government’s seven-year implementation program for 2017–2024, prioritizes inclusive economic
growth, job creation, and private sector-led development in a variety of growth sectors, including
diversified tourism, local manufacturing, productive agriculture and agro-processing, and knowledge-
based services and information and communications technology (ICT). Dynamic and competitive
private enterprises of all sizes and strong ecosystems for entrepreneurship are critical for private
sector-led development as a foundation of economic growth, job creation, poverty alleviation and
increased prosperity.
The Entrepreneurship Development Policy (EDP) supports private sector entrepreneurs
and provides the necessary environment for private sector dynamism, innovation,
and risk taking required for a modern, sophisticated, and rapidly growing economy.
The government has built a strong track record of reforms to support the development of viable
enterprises. The EDP builds on the existing policies and reforms undertaken by the government
and holistically seeks to address the gaps within Rwanda’s entrepreneurship ecosystem. While these
important GOR policies promote private sector development more broadly in each of their respective
domains, the EDP actions reinforce, support implementation, and complement the existing policies
and strategies toward achieving increased entrepreneurship, business growth, and job creation in
Rwanda.
The EDP is closely aligned with all key GOR policies and strategies across all line ministries
that promote private sector development and economic growth through social transformation—
the Vision 2050, NST1, Private Sector Development and Youth Employment Strategy
(PSDYE), and Made in Rwanda Policy. The EDP also underpins Rwanda’s goals and commitments
as part of key regional and international development agendas, including the Sustainable
Development Goals (SDGs), African Union Commission (AU) Agenda 2063, and the
East African Community (EAC) Vision 2050.
The EDP replaces and builds on the achievements of the 2010 Small and Medium-
Sized Enterprise (SME) Development Policy, which focused only on SMEs. The EDP
supports entrepreneurship, innovation, and enterprise growth at all stages of the enterprise growth
lifecycle, from start-ups to existing micro, small, and medium-sized enterprises (MSMEs) and large
enterprises. Although substantial successes have been registered by the SME Development Policy, it
fell short of creating an enabling environment necessary to support entrepreneurship and innovation
among MSMEs. Thus, the EDP’s focus is on strengthening the entrepreneurship ecosystem as an
enabler to enterprise creation and growth.
A focused, coherent entrepreneurship policy and an integrated approach are necessary
to create an enabling environment for the success of entrepreneurship and innovation
among start-ups, MSMEs, and large enterprises. This will require a concerted effort to
develop human capacity at the national and local levels, as well as provide adequate resources
to support implementation of the policy actions. This policy aims to address these macro-level
structural challenges, which have characterized government interventions thus far, while also taking
into account the development goals of the GOR, specifically to increase value-added processing to
reduce the trade deficit and rise out of poverty, and to address challenges articulated by enterprises
on the ground.
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The EDP’s vision is to develop an effective entrepreneurship support ecosystem that
creates the necessary conditions and enablers for Rwandan entrepreneurs to unleash
their entrepreneurial potential and to grow dynamic and competitive enterprises that will drive
economic growth and job creation. The EDP uses a seven-pillar framework that focuses on key
pillars of the entrepreneurship ecosystem: human capital and management, business support,
financing, business enabling environment, markets and value chains, technology and
infrastructure, and entrepreneurial culture.
The comprehensive objective of the EDP is to ensure that all seven pillars of the
entrepreneurship ecosystem function properly, allowing Rwandan start-ups, MSMEs,
and large enterprises to grow sustainably and profitably. EDP actions address constraints
identified under each of the seven pillars to achieve the following objectives:
1. Improve access to skills and know-how for existing and potential entrepreneurs to effectively
start and manage a business;
2. Improve business support system for entrepreneurs, including business consultants, mentors,
incubators, and accelerators;
3. Improve entrepreneurs’ ability to access the finance required for business growth from various
sources, including equity, debt, and grants from public, private, and peer-to-peer sources.;
4. Streamline tax regimes that are supportive to entrepreneurship development;
5. Expand access to domestic and export market opportunities for entrepreneurs;
6. Improve entrepreneurs’ access to technologies and innovations for business growth and
productivity;
7. Promote the culture of entrepreneurship and equitable access to business opportunities for all
entrepreneurs.
The EDP has been informed by best practices from leading countries in the developed
and developing world that have put in place targeted and effective entrepreneurship
development policies which have been evaluated and have contributed to their successful
economic transformation and created robust ecosystems for entrepreneurship support. Three
countries—Singapore, Israel and Chile—stand out for their path to entrepreneurship as models for
consideration for Rwanda.
To identify the key constraints to entrepreneurship in Rwanda and develop EDP actions, extensive
stakeholder interviews were conducted, including central and local governments in all provinces and
20 districts as a representative sample, entrepreneurs from start-ups and MSMEs, representatives
from the Private Sector Federation (PSF), banks, local and international investors, business consultants,
academia, incubators, accelerators, and donors. The EDP also draws extensively on the review of
prior research and assessment of Rwanda’s priorities under the NST1, PSDYE, and other relevant
GOR policies and strategies.
Proposed policy actions cover each of the EDP seven pillars. They first capitalize on
existing initiatives in place in Rwanda. When no ongoing initiative is in place, policy actions
draw on relevant international best practices and evidence adapted to the Rwandan
context. Finally, when best-fit solutions cannot be found domestically or internationally, the EDP
pilots innovative solutions, which will be tested at a small scale, refined based on lessons learned,
and launched at scale when and if ready.
• Pillar 1: Human capital and management focuses on improving access to skills and
know-how that are necessary to effectively start and run a business. Policy actions focus
on improving the marketability of tertiary academic programs, strengthening applied skills
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in secondary school entrepreneurship curriculum, improving the access to and quality of
English language instruction, improving availability of technical skills training outside of formal
education, improving business governance, and strengthening service delivery across all
sectors.
• Pillar 2: Business support focuses on improving business support system for entrepreneurs
through access to tailored business consulting services, improving the availability of high-
quality business consultants, supporting development of mentorship networks, piloting new
models of provincial business incubators, supporting development of the Kigali Innovation
City (KIC), and strengthening linkages with international business support institutions.
• Pillar 3: Financing improves entrepreneurs’ ability to access finance for business growth
from various sources, including equity, debt, and grants from public, private, and peer-to-
peer sources. Policy actions increase entrepreneurs’ awareness of information on financial
products, improve the effectiveness of the Business Development Fund (BDF), help financial
institutions develop industry-specific financial products, promote learning and exchange of
best practices in financing, build a private capital investor culture, create a start-up matching
fund and a fellowship fund for entrepreneurs, promote crowdfunding, and support the already
existing initiative to list MSMEs on the Rwanda Stock Exchange (RSE).
• Pillar 4: Business enabling environment aims to streamline tax requirements for new
firms to decrease business costs for new entrepreneurs. Proposed policy actions include
reviewing and modifying tax requirements for start-ups and MSMEs, increasing awareness
for entrepreneurs about the benefits of formality, and increasing the awareness of tax
requirements.
• Pillar 5: Markets and value chains focuses on expanding access to domestic and export
market opportunities for entrepreneurs via improving cross-border trade; improving
warehousing systems; making government procurement opportunities more accessible to
newer, smaller companies; improving access to market information; facilitating adoption of
standards; and updating the SME Cluster Strategy.
• Pillar 6: Technology and infrastructure improves entrepreneur access to technologies
and innovations required for business growth and productivity via promoting reliable power
solutions, increasing coordination between entrepreneurship clusters and government
infrastructure planning, promoting private sector-driven supply of improved agricultural
technologies, and improving digital literacy.
• Pillar 7: Entrepreneurial culture promotes the culture of entrepreneurship and access
to business opportunities for entrepreneurs, including youth, women, and people living with
disabilities via promoting exchanges to encourage entrepreneurial culture and ensuring equal
opportunities and support for all entrepreneurs.
The EDP will be implemented using existing institutional frameworks. The Ministry
of Trade and Industry (MINICOM), Rwanda Development Board (RDB), Ministry of
Education (MINEDUC), Ministry of Youth (MYCULTURE), Ministry of Finance and
Economic Planning (MINECOFIN), Ministry of Local Government (MINALOC), and
PSF are the key leading institutions implementing the seven pillars of the EDP. MINICOM,
as the overall policy lead, will play the role of coordinator and high-level policy supervisor. The
institutional framework that supports implementation of the policy and the monitoring and evaluation
(M&E) structure allow for a dynamic and responsive policy, which will enable its continuous updating
and upgrading to reflect changes in the operating environment and incorporate lessons learned
during implementation.
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1. GENERAL INTRODUCTION
1.1 Background
The business environment reforms that propelled Rwanda in the World Bank’s Doing Business rankings
from 62
nd
in 2016 to 29
th
in the world in 2019, coupled with private sector development-focused
government policies and strategies, and financing instruments have helped foster entrepreneurial
activity. This can be observed in both traditional sectors, such as agriculture and tourism, and in new
technology-oriented sectors, such as ICT.
Figure1: Existing Rwandan Entrepreneurship Ecosystem
The state of entrepreneurship in Rwanda has been improving, most notably in recent years. Most
companies in Rwanda are young and micro. In 2014, 90 percent of operating firms were still young,
having been established after 2006.
1
In 2011, 73 percent of all firms were micro-enterprises; in 2014
this number decreased to 65 percent.
2
While the share of micro-enterprises is still high, this decline
reflects an important growth in the number of small and medium-sized enterprises (SMEs) as compared
to micro businesses. Moreover, between 2011 and 2017, the number of large firms with more than
100 employees more than quadrupled from 106 to 426, representing the maturing of the Rwandan
market and increased opportunities for value chain integration for MSMEs.
3
Rwandan companies are
concentrated in the non-tradable sector. According to the 2017 Establishment Census, wholesale
and retail trade, and accommodation and food services accounted for 77.8 percent of all firms. In
2018, the employment-to-population ratio was 46.0 percent; 2 percentage points higher than the one
in 2017, which stood at 44.2 percent.
4
1 World Bank. (2019). Future Drivers of Growth. Calculations are based on statistics from the Rwanda Census of Business Establishment (National
Institute of Statistics of Rwanda [NISR], 2011 and 2015).
2 Ibid.
3 Establishment Census 2011; Establishment Census 2017.
4 Labour Force Survey Report. (December 2018).
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In 2018, agriculture accounted for 55 percent of employment.
1
Additionally, 71 percent of MSMEs are
rural (outside of Kigali). At the same time, informality remains a challenge; about 90 percent of firms
are estimated to be informal and more than 60 percent of employment occurs informally.
2
Rwanda has also witnessed the birth of several important entrepreneurship ecosystem enablers,
such as business incubators and accelerators, which provide valuable support to start-ups. These
incubators and accelerators are establishing themselves as platforms to help start-ups launch and
grow, hosting cohorts of entrepreneurs ready to start and scale their businesses. These incubators
and accelerators are becoming magnets for other key enablers such as business service providers
(e.g.: accountants and business consultants); mentors and coaches; and, to a lesser extent, early
stage investors, such as business angels. However, while small grants are often made available to
entrepreneurs in partnerships between incubators and international donors, equity funding remains
scarce and most start-ups cannot afford bank loans, making access to finance one of the key constraints
to entrepreneurship.
Another positive development is the growing number of high-level academic institutions entering
and expanding in Rwanda. The presence of universities, such as Carnegie Mellon University, African
Leadership University (ALU), and African Institute for Mathematical Sciences (AIMS), is increasing the
quality of tertiary education, especially in science, technology, engineering, and mathematics (STEM)
subjects and business management. This is contributing to the overall improvement in the quality of
human capital and workforce. In addition, the GOR’s investment in introducing new entrepreneurship
curricula in secondary schools is building a foundation for training future entrepreneurs. To fully
capitalize on this potential, there is an opportunity to better connect these educational institutions
to relevant industries and create mechanisms to stimulate students to become entrepreneurs.
Rwanda has been working on ambitious cluster-like initiatives, most notably the KIC, which aims
to become a hotbed for technology start-ups, MSMEs, and large enterprises in biomedical, financial
technology (fintech), smart energy, and cyber security. This initiative, which connects incubators,
academic institutions, funding (via the Innovation Fund), and a network of support, has the potential
to take high-tech entrepreneurship in Rwanda to the next level, similar to what initiatives such as
Start-Up Chile (SUP) have accomplished. Rwanda possesses an untapped potential for becoming
one of Africa’s research and development (R&D) and innovation hubs with developing infrastructure,
growing market, conducive business environment, stable political situation, fast-growing economy,
increasing number of prestigious academic institutions, and a central location within Africa.
Nevertheless, entrepreneurs still face several challenges to turn their ideas into sustainable high-
growth businesses that would propel Rwanda toward its vision for growth outlined in the NST1,
Vision 2020, and Vision 2050. Access to knowledge and latest technologies is still restricted. Sound
management practices and entrepreneurship training are not yet commonplace. Business support
services are often not specialized enough to help entrepreneurs get to the next level. Access to
finance, especially early equity investment, is highly limited. Cultural aspects, such as risk-aversion
and a preference for a steady job over an entrepreneurial “adventure,” keep some of the brightest
Rwandan minds from taking the start-up leap. In the Global Entrepreneurship Index 2018, Rwanda
scored the lowest in risk capital, risk acceptance, process innovation, start-up skills, human capital,
and technology absorption.
3
Business informality, estimated to be as high as 93 percent by the Fifth Integrated Household Living
Conditions Survey 2016–2017 (EICV5), is another challenge. Unregistered companies operate
illegally, representing a risk to themselves, suppliers, and clients, and do not contribute in taxes, while
being unable to enjoy government benefits. The major cause of informality is the perceived high cost
associated with formality by entrepreneurs. To increase business formalization, the EDP adopts an
organic approach, where companies are nudged to become formal as some of the main perceived
1 Ibid.
2 World Bank. (2019). Future Drivers of Growth. Calculations are based on statistics from the Rwanda Census of Business Establishment. (NISR, 2011
and 2015).
3 Global Entrepreneurship Index 2018.
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costs associated with formality, such as taxes and compliance with standards, are eased and applied
in a gradual manner according to international best practices, minimizing burdens for both start-
ups and MSMEs. At the same time, the increased awareness of market opportunities and available
support programs for entrepreneurs as a result of EDP actions will motivate informal entrepreneurs
to formalize to be able to take advantage of existing business opportunities.
The EDP recognizes the achievements made so far and includes policy actions necessary to remove
the remaining obstacles to entrepreneurship and bolster Rwanda’s entrepreneurship ecosystem.
1.2 Rationale for Change from SME Development Policy to Entrepreneurship
Development Policy
To achieve Rwanda’s economic development objectives, both new and existing enterprises of all sizes
need to grow. The EDP replaces and builds on the achievements of the 2010 SME Development Policy,
which focused on only SMEs. Thus, the EDP supports entrepreneurship, innovation, and enterprise
growth and graduation at all stages of the enterprise growth lifecycle, from start-ups to existing
MSMEs and large enterprises.
Table 1: Visions of the SME Development Policy and the New EDP
Different
Policy
Visions
SME Development Policy Entrepreneurship Development Policy
“To create a critical mass of viable and
dynamic SMEs signicantly contributing to
the national economic transformation.”
“To develop an effective entrepreneurship support ecosystem that creates the
necessary conditions and enablers for Rwandan start-ups, MSMEs, and large
enterprises to unleash their entrepreneurial potential and grow dynamic and
competitive enterprises that will drive economic growth and job creation.”
The
focus
here is
on small enterprises and
their
contribution to economic transformation.
The focus here is more on strengthening the entrepreneurship ecosystem as an
enabler to enterprise creation and growth.
Figure 2 displays how the two policies are related, with the EDP’s vision covering the larger
entrepreneurship ecosystem, and with SMEs included in the umbrella of the EDP.
Figure 2: Relationship between EDP and SME Development Policy
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Although substantial successes have been registered by the SME Development Policy, it fell short
of creating an enabling environment necessary to support entrepreneurship and innovation among
MSMEs. Key challenges still include:
1. Limited access to skills and know-how for existing and potential entrepreneurs that are necessary
to effectively start and run a business;
2. Limited business support system for entrepreneurs, including business consultants, mentors,
incubators, and accelerators;
3. Limited entrepreneurial ability to access the finance required for business growth from various
sources, including equity, debt, and grants from public, private, and peer-to-peer sources;
4. Non-streamlined tax requirements for newly established firms that increase business costs for
new entrepreneurs;
5. Limited access to domestic and export market opportunities for entrepreneurs;
6. Limited entrepreneurial access to technologies and innovations required for business growth and
productivity;
7. Negative culture of entrepreneurship and limited access to business opportunities for women
entrepreneurs.
From these challenges, it is clear that a focused, coherent entrepreneurship policy and an integrated
approach are necessary to create an enabling environment for the success of entrepreneurship
and innovation among start-ups, MSMEs, and large enterprises. This will require a concerted effort
to develop human capacity at the national and local levels, as well as provide adequate resources
to support implementation of the policy actions. This policy aims to address these macro-level
structural challenges, which have characterized government interventions thus far, while also taking
into account the development goals of the GOR, specifically to increase value-added processing to
reduce the trade deficit and rise out of poverty, and to address challenges articulated by enterprises
on the ground.
1.3 Relationship between EDP and Regional and Global Strategies and Goals
The EDP underpins Rwanda’s goals and commitments as part of key regional and international
development agendas, including the SDGs, the AU Agenda 2063, and the EAC Vision 2050. Creating
environment for growth of vibrant and competitive private enterprises, entrepreneurship, and
innovation is a critical element to achieving regional and global growth and development objectives.
EDP and SDGs
Dynamic and competitive private enterprises of all sizes and strong ecosystems for entrepreneurship
are critical for achievement of all SDGs since private sector-led development is a foundation of
economic growth, job creation, poverty alleviation, and increased prosperity. Entrepreneurs around
the world drive innovation and development of solutions to the most intractable development
problems and have a key role to play in advancing each of the 17 SDGs, with EDP contributing most
directly and immediately to the following SDGs:
• Goal 1: End poverty in all its forms everywhere.
• Goal 2: End hunger, achieve food security, improve nutrition and promote sustainable
agriculture.
• Goal 4: Ensure inclusive and equitable quality education and promote lifelong learning
opportunities for all.
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• Goal 5: Achieve gender equality and empower all women and girls.
• Goal 6: Ensure availability and sustainable management of water and sanitation for all.
• Goal 7: Ensure access to affordable, reliable, sustainable, and modern energy for all.
• Goal 8: Promote inclusive and sustainable economic growth, full and productive employment,
and decent work for all.
• Goal 9: Build resilient infrastructure, promote inclusive and sustainable industrialization, and
foster innovation.
• Goal 10: Reduce inequality within and among countries.
EDP and AU Agenda 2063
The AU Agenda 2063 sets out a framework for “an integrated, prosperous, and peaceful Africa, driven
by its own citizens and representing a dynamic force in the international arena.” The first 10-year
Implementation Plan of the Agenda (2014–2023) includes seven Priorities (“Aspirations”) and 20
Goals. Successful implementation of the EDP will directly contribute to the achievement of the
following goals:
• Goal 1: A high standard of living, qualify of life, and well-being for all citizens.
• Goal 2: Well-educated citizens and skills revolution underpinned by science, technology, and
innovation.
• Goal 4: Transformed economies.
• Goal 5: Modern agriculture for increased productivity and production.
• Goal 7: Environmentally sustainable and climate-resilient economies and communities.
• Goal 17: Full gender equality in all spheres of life.
• Goal 18: Engaged and powerful youth.
EDP and EAC Vision 2050
The EAC Vision 2050 sets out six shared development goals for the East Africa region. EDP directly
contributes to achievement of the following EAC goals:
• Goal 2: Enhanced agricultural productivity for food security and a transformed rural economy.
• Goal 3: Structural transformation of the industrial and manufacturing sector through value
addition and product diversification based on comparative advantage for regional competitive
advantage.
• Goal 4: Effective and sustainable use of natural resources with enhanced value addition and
management.
• Goal 5: Leverage on the tourism and services value chain and building on the homogeneity
of regional cultures and linkages.
• Goal 6: Well-educated and healthy human resources.
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1.4 Relationship between EDP and other existing national policies and strategies
The GOR has adopted an ambitious growth and competitiveness strategy. Vision 2050 sets a target
of achieving upper-middle-income status by 2035 and high-income status by 2050. The NST1, the
government’s seven-year implementation program for 2017–2024, prioritizes inclusive economic
growth, job creation, and private sector-led development in a variety of growth sectors, including
diversified tourism, local manufacturing, productive agriculture and agro-processing, and knowledge-
based services and ICT. Support to entrepreneurship — creating conditions for growth of vibrant
and competitive enterprises across all sectors of the economy — is a critical element to achieving
these growth objectives.
The EDP is closely aligned with all key GOR policies and strategies across all line ministries, and
is grounded in Rwanda’s strategic orientation articulated in NSTI. Particularly, it supports NST1
priorities of empowering youth and women entrepreneurship, improving access to finance for
entrepreneurs, developing skills, supporting innovation and technology firms, improving industry
networks and business support services, developing competitive value chains and services sectors,
reducing the cost of doing business and facilitating trade, increasing productivity in agriculture, and
increasing entrepreneurial motivation and risk taking, among others.
Figure 3: The EDP is Central to the National Policies and Strategies in Rwanda
As illustrated in Figure 3, EDP complements and is interconnected with other GOR policies,
strategies, and official documents that promote private sector development and economic growth
through social transformation. These policies and strategies include:
• Vision 2050: Rwanda aspires to increase the incomes and well-being of all Rwandan citizens,
because prosperity is a key element to quality life. Additionally, Rwanda’s aspirations are
translated in becoming an upper-middle-income country by 2035 and a high-income country
by 2050.
• NST1: The NST1 prioritizes inclusive economic growth and social development with the
private sector at the helm. The NST1 calls for strategic interventions for the development
of a specific policy on entrepreneurship development to create a conducive ecosystem for
growth of vibrant and competitive enterprises across all sectors of the economy.
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• PSDYE: The PSDYE strategy recognized that the existing ecosystem for entrepreneurship
development must be nurtured and encouraged to flourish.
• Made in Rwanda Policy: To increase the competitiveness of the Rwandan economy, the
Made in Rwanda Policy recognizes the need for a conducive business environment for
entrepreneurship development and realization of national employment programs in general.
The government has built a strong track record of reforms to support the development of viable
enterprises. EDP builds on the above mentioned policies and the already existing reforms undertaken
by the government. While these important GOR policies promote private sector development more
broadly in each of their respective domains, the EDP actions reinforce, support the implementation of,
and complement these existing policies and strategies toward achieving increased entrepreneurship,
business growth, and job creation in Rwanda.
This policy supports private sector entrepreneurs and provides the dynamism, innovation, and
risk taking required for a modern, sophisticated, and rapidly growing economy. The EDP holistically
seeks to address the existing gaps within Rwanda’s entrepreneurship ecosystem.
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2. EDP DEVELOPMENT PROCESS
2.1 Definitions
Entrepreneurship
EDP uses a broader definition of entrepreneurship than just start-ups, where the term
“entrepreneurship” also captures innovation on the part of established firms, in addition to similar
activities on the part of new businesses:
Entrepreneurship is “capacity and willingness to develop, organize, and manage a business venture
along with any of its risks in order to make a profit.”
1
An entrepreneur is an individual who,
rather than working as an employee, “organizes, manages, and assumes the risks of a business or
enterprise.”
2
The entrepreneur is commonly seen as an innovator, a source of new ideas, goods,
services, and businesses/or procedures.
Firm Size Definitions
There is no uniform international definition for MSMEs, large enterprises, and start-ups. Definitions
for enterprise size vary from country to country and context to context, both in terms of indicators
and benchmarks. In most instances, two indicators—revenue and number of employees—are used
to define enterprises. However, in certain cases, for example, if the goal is comparing firms in the
context of global trade and finance, companies may also be categorized according to exports or
investments. Even within the most commonly accepted indicators—sales and employment—what is
small in a large economy, like the United States or Germany, might be considered medium in a smaller
economy, like Jamaica or Uganda. The term “start-up,” however, has enjoyed more consensus and,
although no unique definition has been globally adopted, it is most used to refer to newly started
(usually less than three years in existence), innovative, high-growth potential ventures.
3
The choice of “number of employees” and “annual sales” as key references for company size is
particularly fitting for developing countries with a strong rural base, like Rwanda, since indicators such
as investments and exports often do not apply to micro and small rural businesses and, moreover,
data on investments and exports are more difficult to collect. EDP uses the following definitions
based on extensive conversations with stakeholders in Rwanda and research on definitions used
by global institutions such as the World Bank and Organization for Economic Co-operation and
Development (OECD),
4
private organizations such as the FSE Group,
5
national initiatives such as
Enterprise Ireland,
6
as well as previous definitions used in Rwanda, for example, in its 2010 SME
Development Policy.
1 Retrieved from http://www.businessdictionary.com/denition/entrepreneurshiphtml.
2 Retrieved from https://www.merriam-webster.com/dictionary/entrepreneur.
3 See for example: https://www.startups.co/articles/what-is-a-startup-company.
4 Retrieved from https://stats.oecd.org/glossary/detail.asp?ID=3123.
5 Retrieved from http://www.thefsegroup.com/denition-of-an-sme.
6 Retrieved from https://www.enterprise-ireland.com/en/about-us/our-clients/sme-denition.html.
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Table 2: Firm Size Definitions
Start-Up Micro Small Medium Large
Number of Employees An early stage company (less than three
years in existence) that is trying to solve
problems with scalable, often innovative and
technology-oriented business solutions.
1 to 2 3 to 20 21 to 100 >100
Annual Sales (Rwandan
Franc [RWF])
<1 million 1 to 20 million 20 to 500 million >500 million
High-Growth Entrepreneurship
The definition of a start-up used by EDP goes hand in hand with the concept of high-growth
entrepreneurship, which refers to endeavors with the potential for exponential growth, also known
as “hockey-stick growth.”
7
In its distinction between start-ups and MSMEs, the EDP recognizes that
not all entrepreneurs are equal and different groups have different challenges which require specific
policy actions and support. For example, a small garment business in Huye has different needs from
a fintech start-up operating out of the KIC. The former might need a small loan for equipment and
value chain support to better connect with suppliers and clients; the latter might need an equity
investment (“risk capital”) for software development and facilitation of a partnership with a Pan-
African technology company. Both types of endeavors are important and the EDP is committed to
supporting entrepreneurs across the entire spectrum.
Throughout the EDP, whenever challenges and policy actions involve start-ups, they are by definition
related to high-growth entrepreneurship. A start-up, therefore, is not any company in its early stage
of formation, as it is commonly misperceived, but rather an early stage company with the potential
for hockey-stick growth.
8
MSMEs, in turn, are companies that meet the employment and annual sales
requirements defined in Table 2 and are poised to remain roughly at the same size or enjoy steady
(not exponential) growth overtime. Whenever the EDP discusses newly established businesses and
challenges associated with starting a business, it refers to them as “new firms,” which can be both
start-ups and MSMEs.
2.2 International Benchmarks
Leading countries in the developed and developing world have put in place targeted and effective
entrepreneurship development policies that have been evaluated and have contributed to their
successful economic transformation by creating robust ecosystems for entrepreneurship support.
Three countries stand out for their path to entrepreneurship as models for consideration for Rwanda:
Singapore, Israel, and Chile. Best practices from these and other countries have informed EDP actions.
Singapore
A small country with few natural resources, Singapore took a deliberate approach to foster its
economic growth trajectory. Through government support to entrepreneurship, Singapore has
established itself as a world-class example and a destination for entrepreneurs from around the
world. In a span of just five years, from 2010 to 2015, Singapore’s entrepreneurial ecosystem has
flourished. Singapore’s success story in entrepreneurship began with strong government leadership
that has passed business-friendly reforms, streamlined the process of business creation, facilitated
access to overseas markets, improved the venture capital landscape, and modified the tax program
to benefit start-ups. Singapore’s entrepreneurship hub — Block 71— has even been dubbed “the
world’s most tightly packed entrepreneurial ecosystem” by The Economist.
7 Hockey-stick refers to the growth graphic representing a short fall (early losses, adjustments, investments) followed by aggressive rise over a
short period of time (i.e., exponential growth). Retrieved from https://searchcustomerexperience.techtarget.com/denition/hockey-stick-growth.
8 Several other denitions for high-growth entrepreneurs are also used within the global entrepreneurship community, including gazelles, small and
growing businesses (SGBs), high-impact rms, and unicorns.
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Singapore employed several policy instruments to boost entrepreneurship. The country has a skilled
workforce and the ability to harness international talent through permissive visa arrangements. For
example, Startup SG Talent offers EntrePass, a visa program that allows international entrepreneurs
a two-year visa in Singapore. Singapore has a strong venture capital scene; venture capital investment
in the technology sector grew from less than $30 million in 2011 to more than $1 billion in 2013,
with one exit valued at $200 million. Finally, the country makes it easy to start a business; it regularly
scores among the top contenders in the World Bank Doing Business Index and ranked 27 of 177
countries on the Global Entrepreneurship Index. In 2018, International Enterprise Singapore and the
Standards, Productivity and Innovation Board (SPRING) came together as a single agency to form
Enterprise Singapore, offering market readiness assistance grants and funding to defray the cost of
overseas expansion and for Singapore-based companies to participate in international trade fairs.
This, coupled with existing programs and policies to benefit entrepreneurs, ensures a bright future
for start-ups.
In this way, Rwanda will look to Singapore for examples of how the government can support
entrepreneurship at a national level. Strong government leadership and a similar governance structure
in Rwanda allow the GOR to incorporate Singaporean best practices in its EDP.
Israel
Israel’s history of immigration and rebuilding has fostered an innate entrepreneurial culture, where
starting a business is a respected endeavor and entrepreneurs enjoy the support of both the private
sector and the government. Until the 1980s, entrepreneurs were likely to rely on personal or family
funding for working capital and growth. However, that began to change with Israel’s entrepreneurial
boom funded by the venture capital industry in the mid-1980s. The first venture capital funds were
funded by private investors, including Israeli Diaspora and expatriates. These funds supported start-
up companies to flourish, with an early focus on agriculture and agricultural technology (agri-tech), as
well as a strong focus on knowledge and R&D. The developments in agri-tech helped Israel cultivate
dry desert soil, increasing harvest yields.
Israel’s government support to entrepreneurs ranges from tax benefits for small companies employing
fewer than 10 people to government-backed bank loans and government-funded incubators. The
history of Israel’s start-up success is tied to Yozma, a government incubator developed in the 1990s,
which offered tax incentives for international entrepreneurs establishing a business in Israel and
doubling funds from the government. Today, Israel’s Office of the Chief Scientist uses its annual budget
of $450 million to offer up to 85 percent of seed funding for close to 200 incubated companies per
year, as well as support large-scale R&D projects by larger companies.
9
The country also boasts the
largest share of early stage and seed venture capital funding in gross domestic product among OECD
countries.
10
A shared history of recovering and rebuilding after a tragic past, the importance of Diaspora
contribution to the economy, and its role as a knowledge hub for the region sets Israel apart as an
attractive model for Rwanda.
9 Retrieved from https://www.geektime.com/2015/04/19/in-israel-behind-every-successful-entrepreneur-stands-a-lot-of-government-support.
10 OECD. (2016). SME and Entrepreneurship Policy in Israel. Retrieved from https://mof.gov.il/chiefecon/internationalconnections/oecd/oecd%20enterp.
pdf.
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Chile
With a rank of 19 on the Global Entrepreneurship Index, Chile is recognized for its government
policies and programs stimulating entrepreneurial growth. Chile has liberal immigration policies for
international entrepreneurs, a generous taxation program, and among the best business incubators
in Latin America. The Chilean Economic Development Agency, Corporación de Fomento de la Producción
de Chile (CORFO), is tasked with promoting economic growth in the country. It is the main driver
of entrepreneurship policy, with more than 50 programs to support entrepreneurs, both domestic
and international.
Major government-sponsored programs such as Start-Up Chile (SUP) have allowed the country to
pull ahead in the growth of start-ups led by Chileans and by international entrepreneurs. SUP offers
a $40,000 equity-free grant, a one-year visa, and six months of mentoring. SUP makes a distinction
between a government policy and a state policy. Since its creation in 2010, SUP has endured as a
state policy rather than the work of any one administration. Although it is run by the government and
funded by taxpayers, SUP functions more like a start-up program and less like a government agency.
It measures its success by its ability to change public perception of entrepreneurship and promote
a cultural change that allows its citizens, particularly youth, to attempt to start a business without
penalizing failure.
Attitudes toward entrepreneurship in Rwanda are similar to those that Chile experienced before
SUP. Many Rwandans view starting a business as a second option after formal employment. The
country’s best and brightest graduates seek jobs with major companies or in the public sector before
considering entrepreneurship. Chile faced a similar situation before SUP. However, since its creation
in 2010, Chile has drawn international entrepreneurs and investors by offering business development
services (BDS) and venture capital through SUP and has become known as a model often replicated
by governments around the world.
2.3 Development Process and Stakeholder Consultations
To identify the key constraints to entrepreneurship in Rwanda and develop EDP actions, extensive
stakeholder interviews were conducted, including with central and local governments in all provinces
and 20 districts as a representative sample, entrepreneurs from start-ups and MSMEs, representatives
from the PSF, banks, local and international investors, business consultants, academia, incubators,
accelerators, and donors. The EDP also draws extensively on the review of prior research and
assessment of Rwanda’s priorities under the NST1, PSDYE, and other relevant GOR policies and
strategies.
The development process is detailed in Figure 4.
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Figure 4: The EDP Development Process
Cabinet Approval (April 2020)
The policy was approved by the cabinet meeting of 17
th
April 2020.
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3. VISION AND OBJECTIVES
3.1 Vision
The EDP’s vision is to develop an effective entrepreneurship support ecosystem that creates the
necessary conditions and enablers for Rwandan entrepreneurs to unleash their entrepreneurial
potential and grow dynamic and competitive enterprises that will drive economic growth and job
creation.
3.2 Policy Framework
EDP uses a framework (see Figure 5) that focuses on the seven pillars of the entrepreneurship
ecosystem: human capital and management, business support, access to finance, business
enabling environment, access to markets and value chains, technology and infrastructure,
and entrepreneurial culture. This framework has been informed by internationally recognized
entrepreneurship frameworks
11
and has been adapted to key entrepreneurship priorities and
challenges in Rwanda based on consultations with key stakeholders and review of GOR’s existing
policies and strategies.
Figure 5: The Seven Pillars of the EDP
• Pillar 1: Human capital and management refers to the factors that affect the quality of
management at the firm level and of the workforce, including academic education, technical
training, and people’s general abilities and qualifications to enter the job market and start
their own businesses.
• Pillar 2: Business support encompasses the array of private and public players dedicated
to providing entrepreneurs with training, consulting, mentorship, networking, and BDS, as well
as basic premises and infrastructure, such as business incubators and accelerators.
11 Frameworks reviewed include those developed by the United Nations Conference on Trade and Development, OECD, World Economic Forum,
Aspen Network of Development Entrepreneurs, as well as global indices, such as the Global Entrepreneurship Index (Global Entrepreneurship
and Development Institute), Global Innovation Index (INSEAD), and Global Entrepreneurship Monitor (GEM) (Babson College).
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• Pillar 3: Financing refers to the ability of entrepreneurs to access capital in its various
forms (equity, debt, grants) from private, public, and peer-to-peer sources.
• Pillar 4: Business enabling environment encompasses the laws, regulations, procedures,
taxes, and other micro- and macro-level aspects that influence business activity, productivity,
and growth.
• Pillar 5: Markets and value chains includes the upstream and downstream connections
businesses rely upon to source inputs and sell their products and services, allowing them to
grow profitably and sustainably.
• Pillar 6: Technology and infrastructure are the backbone of a well-functioning economy
and key enablers of sustainable entrepreneurial activity (e.g., access to basic utilities, innovations
like 3D printers) and the broader capacity to innovate through R&D.
• Pillar 7: Entrepreneurial Culture refers to the societal rules, perceptions, traditions, and
even taboos that directly or indirectly influence people’s propensity and ability to become
entrepreneurs and succeed in their endeavors.
3.3 Policy Objectives
The overarching objective of the EDP is to ensure that all seven pillars of the entrepreneurship
ecosystem function properly, allowing Rwandan start-ups, MSMEs, and large enterprises to grow
sustainably and profitably. EDP actions address constraints identified under each of the seven pillars
to achieve the following objectives:
1. Improve access to skills and know-how for existing and potential entrepreneurs to effectively
start and manage a business.
2. Improve business support system for entrepreneurs, including business consultants, mentors,
incubators and accelerators.
3. Improve entrepreneurs’ ability to access finance required for business growth from various
sources, including equity, debt, and grants from public, private, and peer-to-peer sources.
4. Streamline tax programs that are supportive to entrepreneurship development.
5. Expand access to domestic and export market opportunities for entrepreneurs.
6. Improve entrepreneurs’ access to technologies and innovations for business growth and
productivity.
7. Promote the culture of entrepreneurship and equitable access to business opportunities for all
entrepreneurs.
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4. ANALYSIS: CONSTRAINTS TO ENTREPRENEURSHIP
Constraints to entrepreneurship have been identified primarily through extensive stakeholder
interviews and consultations. The EDP identifies key gaps under each of the seven pillars of the
entrepreneurship ecosystem and includes corrective measures to address them, based on international
best practices and evidence referenced further in Chapter 5. Constraints summarized below are not
exhaustive, but have emerged in a close-to-consensual fashion in stakeholder interviews, focus group
discussions, and document reviews. They are considered priorities by stakeholders in terms of their
direct impact on entrepreneurial activity and potential positive spill-over effects, such as inclusive
economic growth and job creation; and are deemed solvable and actionable in the short, medium, or
long term.
4.1 Pillar 1: Human Capital and Management
No entrepreneurial ecosystem can flourish if entrepreneurs do not have the adequate support to
build the skills and know-how required to start companies and run them effectively, as well as to
operate the key functions of the companies. In Rwanda, the human capital hurdles in the educational
system and applied management spheres include:
• Formal Education
- Tertiary education deficit — Graduates of tertiary education generally lack technical
skills that respond to market needs. The quality of most tertiary education courses is
often criticized for being “too theoretical” and less applicable to the job market. This
explains, in part, why in Rwanda 25.7 percent of tertiary graduates remain unemployed.
12
In addition, only 6 percent of university students are enrolled in technical disciplines
such as engineering and just 9 percent are studying sciences, which are considered
low numbers by international standards.
13
Finally, teachers themselves frequently lack
practical experience, which does not help to bridge the gap between academia and
the job market.
- Weak education-market link — Linkages between tertiary institutions with industry
for skills development and practical training are weak, deterring both sides from
benefiting from each other.
- Entrepreneurship curriculum deficit — Formal entrepreneurship curriculum has been
introduced in secondary schools, but content is too basic and targeted at more
subsistence entrepreneurship, rather than higher-value endeavors. More sophisticated
and practical entrepreneurial concepts, such as lean start-up, business canvas, and
strengths, weaknesses, opportunities, and threats (SWOT) analyses, are not adequately
covered in the curriculum in terms of depth of content and time to practice.
- English language skills
14
— English is the key language for accessing international
knowledge, and the spread of the English language has been correlated with broader
economic development.
15
Sometimes, limited English capacity prevents technology-
oriented entrepreneurs from accessing free technical and business content in
e-learning platforms, such as massive open online courses (MOOCs), online webinars,
and YouTube e-learning channels, as well as engaging in relationships with international
entrepreneurs and mentors.
12 Labor Force Survey. Annual Report. (December 2018).
13 Statistical Yearbook. (NISR, 2017).
14 In October 2008, the Rwandan Cabinet passed a resolution calling for the immediate implementation of English as the language of instruction in
all public schools.
15 Retrieved from https://hbr.org/2013/11/countries-with-better-english-have-better-economies.
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• Management
- Poor business-family governance—Separation between business and family matters in
firms is usually weak, resulting in poor governance, with mixed bank accounts and
transactions, joint liabilities, and conflicting management practices.
- Management skills deficit—General management skills across the start-up and MSME
spectrum are usually poor, with entrepreneurs lacking the basic knowledge of business
disciplines such as accounting, marketing, strategy, and finance.
- Limited tax education—Entrepreneurs are not educated about the tax system and
often do not pay taxes correctly, incurring additional costs and penalty fees.
- Poor bookkeeping—Most micro and small businesses do not maintain bookkeeping,
which limits their capacity to plan efficiently and raise financing.
• Service Delivery
- Low level of service delivery—General customer care and client relations are still low
across all sectors of the economy. A study published in 2017 on customer-oriented
service culture in Rwanda found that there was a deficiency across customer
orientation practices such as management of staff, designing service processes for
quality service delivery, and customer-oriented culture.
16
The study notes that for
sectors such as tourism to flourish, customer service needs to improve in consistency
and quality in comparison to neighboring countries like Kenya.
17
4.2 Pillar 2: Business Support
The management deficit identified in Pillar 1 can be addressed in part by an active and efficient business
support system, composed of business consultants, mentors and coaches, business incubators and
accelerators, cooperatives and industry associations, and virtual platforms. While business support
has been gradually improving in Rwanda, key challenges remain, including:
• Consultant deficit—There is an insufficient number of high-quality consultants with sector
and business stage expertise and solid business management skills in both the public and
private sectors. The BDF business advisors throughout the country need to be supported
in improving their advisory programs. Start-ups, MSMEs, cooperatives, and individuals (youth
and women) need assistance in financial management and business plan development to
ensure sustainability and business growth in the long run.
• Low demand for advisory services—Demand for advisory services from businesses of
all sizes is also low due to little perceived value of consulting.
• Mentor deficit—No mentorship culture or formal mentorship networks exist in Rwanda;
experienced entrepreneurs and business people do not make themselves available to coach
and mentor start-ups and MSMEs.
• Incubator/accelerator deficit—There are not enough business incubators and accelerators
available to provide overall infrastructure and business support based on international best
practices and benchmarks. Simultaneously, there is limited demand for these services due to
the low number of entrepreneurs and start-ups.
16 Retrieved from https://www.ajhtl.com/uploads/7/1/6/3/7163688/article_36_vol_6__4__2017.pdf.
17 Retrieved from https://opendocs.ids.ac.uk/opendocs/handle/123456789/7155.
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4.3 Pillar 3: Financing
Difficulty in accessing capital is a recurring complaint among entrepreneurs. It must be noted, however,
that Rwandan financial institutions do benefit from relatively strong liquidity and sound management.
For example, in 2017, according to the National Bank of Rwanda (BNR), capital in the sector was
comfortably above regulatory requirements and liabilities denominated in foreign currency were
low. In addition, the GOR has developed several programs to help MSMEs access financing. The main
hurdles that businesses of all sizes face in raising capital stem from market inefficiencies that, once
fixed, should unleash financing, including:
• Debt
- High collateral requirements—Banks have high collateral requirements and are
therefore often inaccessible for start-ups and MSMEs. The collateral requirement in
Rwanda is 120 percent of the loan amount, as governed by the BNR.
- Underutilized collateral guarantee program—BDF works with banks, microfinance
institutions, and savings and credit cooperative organizations (SACCOs) to cover
between 50 and 75 percent of the required collateral. While the program still works
well for medium-sized companies, the BDF guarantee is hard to access for micro
and small businesses and start-ups, because many MSMEs do not meet the lender’s
collateral requirements and thus do not qualify for BDF services. It also remains
underutilized by banks.
18
- Limited alternatives for collateral—Trade/inventory, finance/factoring, and leasing
are options for MSMEs and large enterprises, allowing the use of an invoice, contract,
or leased asset in lieu of collateral. Currently, the use of these mechanisms in Rwanda
is limited. There is a need for greater recognition of these approaches and regulatory
clarity in their use.
- Limited loan products for early stage businesses—Banks are reluctant to lend
to start-ups and early stage MSMEs due to lack of history and revenues. There are
limited loan products that take into consideration business plans, cash projections, and
entrepreneurs’ track records, as opposed to only assets and collateral.
- Short tenors and grace periods—Debt financing is usually limited to five-year tenors
with short or non-existent grace periods, which is insufficient for many enterprises
to recoup.
- High interest rates—Interest rates charged by lenders are too high, due to the
high cost of capital coupled with limited competition in the banking sector, making
borrowing prohibitive for low-growth businesses.
• Equity
- Limited understanding of equity investment—MSMEs that are not familiar with
equity investment tend to have higher barriers to trust of external parties for fear
of losing control of their businesses. This results in MSMEs not considering equity
investment as an option for funding their businesses.
- Seed capital deficit—There are limited financial resources available from family
and friends and limited other early stage equity funding options for start-ups, such
as seed funds and angel investors. There is a misalignment of expectations between
angel investors and MSMEs with respect to control, risk, and realization of investment
returns. For example, angel investors ask for significant control in return for limited
financing, making the deal unviable and diminishing the chances of long-term success.
18 U.S. Agency for International Development (USAID) Nguriza Nshore. (2018). Rwanda Banking and Investment Analysis.
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- Private equity and venture capital deficit—There is limited private equity and
venture capital funding available for growth-stage companies. This is due, in part,
to limited exit options, which in most cases are restricted to founder’s buy-back
and acquisitions. The very few private equity and venture capital deals taking place,
usually come from international funds that are investing in foreign-owned companies
operating in Rwanda.
• Grants and Other Financing
- Isolated grant programs—Grant and prize programs are available through select
incubators and accelerators, donors, and events/competitions. However, they are not
tied to follow-up financing and business growth targets. These one-off grants have
limited success rates.
- Uncertainty of timing amounts and procedures of grants—Grant programs have extensive
application processes and complex eligibility criteria, and are therefore inaccessible
for many MSMEs.
- Crowdfunding deficit—Despite the presence of platforms such as Kiva, GlobalGiving,
Watsi, and BetterPlace, crowdfunding activity is still low and there is a lack of peer-to-
peer, crowdsourced financing deals. For example, Rwanda is ranked only 132 among
countries in usage for Kiva and Equity crowdfunding is almost non-existent. Increased
awareness of these mechanisms among entrepreneurs and funders alike is needed.
4.4 Pillar 4: Business Enabling Environment
The GOR has made significant progress in implementing business enabling environment reforms.
Rwanda is ranked 29 among 190 economies in the ease of doing business, up from 41 in 2017, in
the World Bank’s Doing Business rankings. However, several constraints still hinder entrepreneurial
development, including:
• Burdensome taxation—The corporate income taxation program does not differentiate
between larger, established companies and new firms (start-ups and MSMEs), remaining too
burdensome for new firms. For example, new firms are subject to the same 30 percent
corporate income tax as established companies and do not benefit from tax grace periods or
progressive taxation to ease the burden on new businesses and accommodate the business
challenges at early stages of growth.
• High base interest rates—Base interest rates remain high (around 16–18 percent), keeping
the market rates up. This makes borrowing prohibitive for many companies and the cost of
capital too high in equity transactions.
• High operating costs—Operating costs, especially rent, utilities, and international road
transport, are disproportionately high in Rwanda.
• High rate of business informality—According to the EICV5, the share of informal
businesses in Rwanda (i.e., businesses operating without formal registration) can be as high
as 93 percent. This keeps many MSMEs out of government programs and the tax base, in
addition to creating legal liability for business owners. Informality remains a problem, in part,
due to the high costs of incorporation and formalization.
4.5 Pillar 5: Markets and Value Chains
Start-ups, MSMEs, and large enterprises cannot prosper in silos. They need to be connected to
domestic, regional, and global value chains in a way that they can source inputs and sell their products
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
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and services efficiently, maximizing profits, growth, and job creation. Given the size of Rwanda’s
economy and geographic disadvantages as a landlocked country, Rwandan businesses face important
challenges, including:
• Limited domestic market—Rwanda’s domestic market is small and has low purchasing
power. Businesses need to take advantage of existing regional and international trade
agreements to better connect to export markets for growth. At the same time, domestic
demand, especially for food products, is bound to increase with continuous economic growth,
urbanization, and trends like the “Supermarket Revolution”
19
already experienced in other
African countries. Businesses need to improve integration into local, regional, and international
value chains.
• Low value-addition in domestic and export markets—MSMEs are only able to export
buy-for-sell commodities and low-value-added products, limiting their potential in terms of
value creation, higher margins, and job creation. Furthermore, MSMEs and cooperatives are
not adequately integrated into value chains, especially in food processing. There is a lack
of large-scale domestic buyers for manufacturing (value addition) and exporting in bulk
(wholesale).
• Limited compliance with standards—The capacity for Rwandan businesses to export,
and often to sell domestically, is limited by frequent lack of compliance with standards (hygiene,
quality, environmental). There is promising growth in the number of product certifications
issued in recent years, but there is still room to promote adoption of standards and support
firms of all sizes to adhere to relevant standards.
• Constraints to cross-border trade—Cross-border trade affects the livelihoods, food
security, and employment of small-scale traders, especially women. The GOR has improved
the operating environment for cross-border traders and has constructed four markets at the
borders (in Burera, Rubavu, Karongi, and Rusizi), with several more planned at Kagitumba,
Gatuna, and Rusumo borders. However, cross-border traders continue to face challenges
such as limited access to credit, lack of information on regional trading protocols and services,
robbery, gender-based violence, and confiscation of goods.
• High price fluctuations—Prices of products and inputs fluctuate significantly, mainly due
to seasonal cropping and lack of appropriate storage, warehousing systems, and a more
sophisticated wholesale market.
• Limited MSME access to GOR procurements—Government procurement
opportunities tend to benefit well-established firms and there is no mechanism to help newer,
smaller firms take advantage of government procurement opportunities.
• Market information deficit—There is no appropriate institution or one-stop shop to
provide entrepreneurs with necessary market information, including available financing
options, standards, tax information, commodity prices, business-to-business (B2B) sales, and
partnership opportunities (industry events, grants, and prizes, etc.).
4.6 Pillar 6: Technology and Infrastructure
Rwanda has a good overall infrastructure—from roads to telecom services—and a budding appetite
for investing in knowledge and technology, as reflected in the presence of high-level academic
institutions such as Carnegie Mellon University, ALU, and AIMS, and the efforts to develop the KIC.
19 Retrieved from https://www.rockefellerfoundation.org/blog/africas-farmers-ready-supermarkets-revolution.
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
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The principal remaining challenges are:
• Infrastructure
- Expensive utility services—The high cost of basic services, such as electricity,
water, and sanitation, affects overall business operating costs. Electricity is particularly
expensive, because Rwanda has limited low-cost energy resources and the market is
not large enough to benefit from economies of scale.
- Low energy distribution—According to the Integrated Business Enterprise Survey,
31.5 percent of firms stated that reliable electricity is a major challenge in the country.
- High transportation and logistics costs—Transportation and general logistics
are expensive and there is a lack of alternatives to road transportation. Rwanda’s
landlocked condition also limits transportation and logistical options.
• Technology
- Restricted intellectual property (IP) laws—Limited IP protection laws, which are
mostly focused on trademarks, hinder firm-level R&D and innovation. Existing IP laws
need to be reviewed for compliance with international standards and coordinated
with U.S. and European treaties.
- Low-tech agriculture — Agriculture is by far the most important sector for
the Rwandan economy, contributing 66–70 percent of total employment. However,
despite remarkable improvements in the past couple of decades, the sector still
operates at low productivity levels. Agri-tech is rudimentary, for example, in irrigation
and fertilization practices, limiting the country’s potential for agricultural production
and export.
20
4.7 Pillar 7: Entrepreneurial Culture
One of the most important hurdles Rwanda faces when it comes to promoting entrepreneurship is
a limited entrepreneurial culture, which includes the following challenges:
• Entrepreneurship not well perceived—Most entrepreneurs start ventures out of
necessity, rather than based on scalable ideas, sound business plans, or passion for becoming
an entrepreneur. Entrepreneurship, therefore, is still seen as an alternative to unemployment,
not a career choice. It lacks the “glamour” it enjoys in most western societies, and therefore
receives limited family support.
• Limited risk-taking attitude—Youth, particularly university graduates, lack entrepreneurial
mindset and are extremely risk averse. Families encourage well-trained graduates to pursue
government or large company jobs due to their reliability and stability.
• Low acceptance of failure—failure is not perceived as a natural part of entrepreneurship,
bringing stigma and low self-esteem to those who have tried and failed, and keeping others
from trying.
• Barriers for women, youth, and people living with disabilities to become
successful entrepreneurs—In addition to the barriers detailed above, these groups face
barriers, including access to finance, which result in lower business survival rates for these
disadvantaged entrepreneurs.
20 Retrieved from http://www.fao.org/rwanda/fao-in-rwanda/rwanda-at-a-glance/en.
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
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5. POLICY ACTIONS
5.1 Policy Design Process
MINICOM, together with other relevant GOR agencies, will implement a set of policy actions under
each EDP pillar. Policy actions were developed following a decision tree process shown in Figure 6.
• First, capitalize on existing initiatives in place in Rwanda—For solutions that are already
being implemented, either by MINICOM or other GOR ministries or agencies, MINICOM will
play a coordinating role, ensuring complementarity and alignment among existing programs, and
will suggest refinements and adaptations to the existing initiatives when needed.
• Second, model policy action on international best practices—When no ongoing
initiative is in place, policy actions draw on relevant international best practices and evidence
adapted to the Rwandan context, referenced throughout the EDP document.
• Finally, pilot innovative solutions—When best-fit solutions cannot be found domestically or
internationally, MINICOM will pilot innovative new initiatives tailored to the Rwandan context
that have the potential to make a strong impact. Given their innovative nature, pilots will be
tested in a “lean-start-up-like” format
21
—tested at a small scale, refined based on lessons learned,
and launched at scale when and if ready.
Figure 6: Policy Design Decision Tree
PROBLEM: Solvable
with existing
solution?
PROBLEM: Solvable
with international
best practices?
Coordinate and/or
adjust
Adapt and adopt
Innovate, design,
pilot, then scale
–
–
Yes
No
Yes
No
5.2 Key Crosscutting Instruments
MINICOM will use two tools to effectively implement EDP actions: an Entrepreneurship Portal
and a Communication Campaign:
• Entrepreneurship Portal, managed and hosted by MINICOM, will provide a wide range of
market information services to entrepreneurs, from commodity prices and bank SME product
comparisons to lists of business consultants and angel investors, procurement opportunities,
jobs postings, and resources on tax information and exports. In Brazil, for example,
entrepreneurs benefit from two such portals, one run by SEBRAE, a private SME support agency,
and another run by the Ministry of Industry and Commerce in partnership with SEBRAE and
21 Retrieved from http://theleanstartup.com/principles; http://www.govtech.com/pcio/Governments-Take-a-Lean-Startup-Approach.html; and https://
digital.gov/2014/07/11/lean-startup-changing-government-services-and-agencies-to-better-serve-the-citizens/#.
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
22
the President’s Office.
22
Another international benchmark is ConnectAmericas—a combined
market information system and business development platform that supports SMEs in Latin
America.
23
For Rwanda, EDP proposes one portal that would serve as a one-stop shop for
entrepreneurs from multiple sectors and stages across the country. The Portal will build
on an assessment of all current and previous portals, to make sure that lessons learned are
incorporated and EDP’s Portal becomes the standard moving forward.
• Communication Campaign, managed by MINICOM and other relevant GOR agencies, will
promote entrepreneurship and increase MSME awareness of EDP and the Entrepreneurship
Portal. It will communicate across all media to inform entrepreneurs and stakeholders in
all industries, from Kigali to all provinces and even abroad, about the GOR’s support to
entrepreneurship, as well as the new resources available to entrepreneurs.
• EDP benchmarking visits, for MINICOM and other relevant GOR agency staff to learn
from the countries highlighted in the EDP as benchmarking case studies—Singapore, Israel,
and Chile. These visits will allow the GOR to learn best practices from these countries that
have all implemented and evaluated effective entrepreneurship development policies of their
own.
5.3 Feasibility and Impact of Policy Actions
EDP actions are categorized according to their expected impact on the state of entrepreneurship
and feasibility of implementation, as shown in Figure 7.
• Higher Impact/Lower Feasibility (HI/LF) actions have a potentially high impact on
entrepreneurship, but their implementation is relatively harder to execute and will take time.
• Higher Impact/Higher Feasibility (HI/HF) activities are top-priority activities that are
not only high impact but also highly feasible.
• Lower Impact/Higher Feasibility (LI/HF) actions have a relatively lower impact on
entrepreneurship, but can be implemented more quickly and can create positive demonstration
effects for the business community.
22 Retrieved from http://www.sebrae.com.br/sites/PortalSebrae and http://www.portaldoempreendedor.gov.br.
23 Retrieved from https://connectamericas.com.
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
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Figure 7: Feasibility and Impact of Policy Actions
Higher Impact/Lower Feasibility
• 1.2 Strengthen applied skills to entrepreneurship
curricula
• 1.3 Improve reach/quality of English language
instruction
• 1.6 Strengthen service delivery across all sectors
• 2.1 Improve access to business consulting services
• 2.4 Pilot new models of provincial business incubators
• 3.2 Review and improve effectiveness of BDF
• 3.3 Help develop industry
-specific financial products
• 3.9 Support existing initiative to list MSMEs on Rwanda
Stock Exchange
• 5.2 Improve warehousing systems
• 6.1 Promote reliable power solutions
• 6.2 Increase coordination between entrepreneurship
clusters and government infrastructure planning
Higher Impact/Higher Feasibility
• 1.1 Improve marketability of tertiary academic
programs
• 1.4 Improve availability of technical skills training
• 1.5 Improve business governance
• 2.2 Improve availability of high quality business
consultants
• 2.3 Support development of mentorship networks
• 2.5 Support development of KIC
• 3.1 Increase entrepreneur awareness of information
on financial products
• 3.4 Promote exchange of best practices in financing
• 3.6 Pilot a start-up matching fund
• 4.1 Review and modify tax requirements for new firms
• 4.2 Increase awareness of the benefits of formalization
• 7.1 Promote exchanges to encourage entrepreneurial
culture
• 7.2 Ensure equal opportunities for all entrepreneurs
• 7.3 Increase equitable awareness
Lower Impact/Lower Feasibility Lower Impact/Higher Feasibility
• 1.2 Introduce applied skills to entrepreneurship
curricula
• 1.4 Improve technical skills training
• 2.6 Strengthen linkages with international business
support institutions
• 3.5 Build private capital investor culture
• 3.7 Create a fellowship or stipend fund for
entrepreneurs
• 3.8 Promote crowdfunding
• 4.3 Increase awareness of tax requirements
• 5.1 Review Rwanda’s Cross-Border Trade Strategy
• 5.3 Make government procurement accessible for
newer, smaller firms
• 5.4 Improve access to market information
• 5.5 Facilitate adoption of standards
• 5.6 Review and update SME Cluster Strategy
• 6.3 Promote private sector-driven supply of improved
agricultural technologies
• 6.4 Improve digital literacy
Impact
Feasibility
HIGHLOW
LOW HIGH
MINICOM, together with other relevant GOR agencies, will implement the following policy actions
under each EDP pillar. Each policy action directly addresses one or several identified
constraints as indicated below.
5.4 Pillar 1: Human Capital and Management
Objective: Improve access to skills and know-how for existing and potential entrepreneurs and staff
that are necessary to effectively start and run a business.
Constraints addressed: A tertiary education deficit, weak academia-market link, gaps in
entrepreneurship curriculum, English language deficit, poor business-family governance of firms, lack
of management skills, and poor bookkeeping.
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
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Policy actions:
1.1. Improve marketability of tertiary academic programs. To support the implementation
of the National Industrial Policy’s action to design courses focused on management and
technical needs of firms in targeted sectors, in coordination with MINEDUC and affiliated
agencies, create a plan for tertiary institutions to better integrate industry linkages in
their curricula. For example, include industry leaders in academic boards; invite industry
professionals to teach and provide guest lectures and seminars; invite businesses to submit
industry problems for solution by science and business students; integrate paid internship
programs in curricula requirements for graduation in business and engineering degrees;
support active alumni associations; and integrate e-learning, including MOOCs, from leading
global universities into formal curriculum, as well as introduce workplace learning, a model
that includes practical training. These recommendations draw on best practices from across
most-developed markets, such as the United States and Europe, and can be seamlessly
replicated in Rwanda.
1
For example, Carnegie Mellon University, which is established in
Rwanda, already adopts the practices above in the United States. (HI/HF)
1.2. Strengthen applied skills in secondary school entrepreneurship curriculum.
In collaboration with MINEDUC and affiliated agencies, review current entrepreneurship
curriculum in secondary schools and create a plan to strengthen applied topics, such as
business plan writing, basic financial modeling, SWOT analysis, and practical “how-to”
courses, such as how to register a business, create a prototype, make the first sale, etc.
Published evidence from Junior Achievement Sweden, an organization that has taught
entrepreneurship to more than 420,000 high school students since 1980, shows that Junior
Achievement Sweden graduates are more likely to start a company than people who did not
participate in the program and that companies started by program graduates have higher
revenue, job creation, and company longevity than companies started by people without
Junior Achievement Sweden experience.
2
(HI/LF)
1.3. Improve the reach and quality of English language instruction. Create a plan,
potentially with development partners, to improve the reach and quality of English teaching
across the country both in school and out of school. Concomitantly, work with or promote
entrance of companies that deliver English lessons via mobile phones and computers in
developing markets. The cases of countries like India, Sri Lanka, and Bangladesh have
shown that spread of the English language is correlated with more economic opportunities
and broader economic development.
3
(HI/LF)
1.4. Improve availability of technical skills training outside of formal education.
Technical skills are not just learned in the formal educational system. Private sector providers
can also play a big role in delivering technical training to out-of-school populations, potentially
helping to provide training opportunities to disadvantaged groups, including women, youth,
and people with disabilities. In Latin America, Laboratoria uses data-driven models to
identify young women with high potential, but who are unable to access good education.
4
It then takes these women through an intensive six-month technology boot camp, where
they learn to code, and connects them with companies for immediate hiring. Results are
impressive, with 75 percent of women finding permanent jobs and tripling their income
upon graduation. To further the implementation of the National Industrial Policy’s action to
1 Blog post by Professor Michel Bezy, Associate Director of Carnegie Mellon University – Africa: http://brel54.blogspot.com/2016/05/ raising-bar-in-
africas-higher-education.html.
2 Retrieved from https://www.researchgate.net/publication/270764182_The_impact_of_entrepreneurship_education_in_high_school_on_long-
term_entrepreneurial_performance and https://ungforetagsamhet.se/om-oss/om-ung-foretagsamhet/about-ja-sweden.
3 Retrieved from https://www.teachingenglish.org.uk/sites/teacheng/les/Z413%20EDB%20Section12.pdf and https://hbr.org/2013/11/countries-
with-better-english-have-better-economies.
4 Retrieved from https://www.laboratoria.la/en.
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
25
improve technical skills of firms and in line with the implementation priorities of the Made in
Rwanda policy to attract private investors in establishment of professional training centers
in key value chains, the GOR will support the development of private technical skills training
initiatives in partnership with private companies and donors and/or support the entrance or
domestic creation of institutions like Laboratoria in Rwanda. (HI/HF)
1.5. Improve business governance. Develop short guides and courses on basic business
governance and disseminate the information via the Entrepreneurship Portal, PSF and its
chambers, business schools, and other relevant agencies. Providing concise, relevant information
to start-ups, MSMEs, and large enterprises in the form of electronic or paper brochures
has proven effective. For example, the Inter-American Investment Corporation, part
of the Inter-American Development Bank, launched the FINPYME App, which included
several such guides on basic accounting, marketing, and governance, and helped thousands
of entrepreneurs improve their business knowledge and practices.
5
In coordination with
business development advisors (BDAs), develop materials targeted toward the needs of rural
uneducated and semi-educated entrepreneurs.(HI/HF)
1.6. Strengthen service delivery across all sectors. In coordination with MINEDUC,
PSF and its chambers, business schools, and other relevant agencies, develop awareness-
raising and training programs to instill the culture of customer service orientation among
both youth preparing to enter the workforce and existing businesses. Increase the profile
and prestige associated with a tourism sector profession and the importance of customer
service excellence among youth. In coordination with policy action 2.1., conduct training on
customer service, client satisfaction, and market research for tourism and other service-
oriented businesses to increase the awareness of existing businesses on the importance of
satisfying and retaining customers for business long-term growth and success. Disseminate
information via the Entrepreneurship Portal, and together with PSF create a business forum
to recognize and promote customer service professionalism, support business competitions
for best customer service, and host learning and exchange events to increase the profile of
customer service across all sectors. Learn from experience of countries in the region, such
as Kenya.
6
(HI/LF)
5.5 Pillar 2: Business Support
Objective: Improve the business support system for entrepreneurs, including business consultants,
mentors, incubators, and accelerators.
Constraints addressed: A limited number of qualified consultants, mentors, and incubators/
accelerators and low perceived value of consulting services.
Policy actions:
1.1. Improve access to tailored business consulting services. To improve access to business
services for entrepreneurs in different sectors and stages of development, particularly
those in rural areas, and in line with the PSDYE, review the roles and responsibilities of
BDAs and develop recommendations to improve the outreach and effectiveness of BDA
services for all types of rural entrepreneurs, including those who are semi-educated. For
established formal businesses, create a program like Brazil’s PEIEX,
7
a program by the
Brazilian Export Promotion Agency that focuses on enhancing the competitiveness of
Brazilian SMEs by providing coaching and consulting on management and production best
practices. Firms receive a standard competitive strength assessment covering different areas
6 Retrieved from https://icxkenya.co.ke/about-us.
7 Retrieved from http://www.apexbrasil.com.br/qualique-sua-empresa-peiex.
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
26
of the enterprise capacity (strategic organization, human capital, finance and costs, sales and
marketing, international trade, product design, production, and innovation), followed by a plan
focused on improving competitiveness. The program offers consulting services in partnership
with universities and institutes of technology in fields such as marketing, human resource
management, finance, product design, and trade.
8
PEIEX has been particularly effective in
promoting the reorganization of small and medium-sized firms, which was positively correlated
with export performance. The GOR will support development of a Rwandan model with
development partners that focuses on business training, business consultants, and academia.
(HI/LF)
1.2. Improve availability of high-quality business consultants. Develop training-of-
trainers courses for business consultants in top business schools and in partnership with
consultancies, where the certificates of completion become a market standard for quality.
The GOR will consider offering tax write-offs for consulting firms that provide services
pro bono to start-ups and MSMEs. Businesses will only hire consultants if they see value in
it and value, in turn, comes from high quality and alignment of services. In India, for example,
the Institute of Management Consultants of India issues the Certified Management
Consultant (CMC) designation to members who have passed a qualifying assessment process
and have met the profession’s standards of competence and ethics in accordance with the
International Council of Management Consulting Institute international standards.
9
(HI/HF)
1.3. Support development of mentorship networks. Build mentor networks, primarily in
partnership with existing incubators and accelerators, academia, and start-ups, MSMEs, and
large enterprises. For example, the GOR will make a “patriotic” call for industry expert
engagement with new entrepreneurs, explaining the importance of mentorship for the
growth of Rwanda; introduce incentives for mentors, such as opportunities to expense time
and a chance to attend special events for networking; and consider establishing a fund to pay
for part of the services on behalf of MSMEs. Mentor networks are the norm across successful
incubator and accelerator programs and budding entrepreneurial ecosystems, from developed
markets like the United States and Europe, to countries like Singapore.
10
(HI/HF)
1.4. Pilot new models of provincial business incubators. To increase business support
to rural entrepreneurs, launch business incubators in provinces (focused on agri-tech and
sector-agnostic) in partnership with and cost shared between a large private sector company,
the central and local government, and a university. Learn from experiences of previous and
existing incubators. Pilot models and after two years, analyze performance metrics and expand
to other provinces if successful. The GOR will build on best-practice models for incubation,
leveraging resources from organizations, whose goals are to help business incubators and
accelerators improve their programs based on international best practices.
11
(HI/LF)
1.5. Support development of the KIC. Coordinate with the Ministry of ICT and Innovation
(MINICT) and RDB and support the KIC’s incubation and acceleration initiatives for high-tech
entrepreneurship. The GOR and development partners will support the KIC to integrate
best practices from global benchmarks like SUP and world-class accelerators.
12
(HI/HF)
1.6. Strengthen linkages with international business support institutions. Through
events and incentives, promote the entrance to Rwanda of global and regional institutions
that provide technical assistance to start-ups, MSMEs, and large enterprises, for example,
Endeavor, Ashoka, RippleWorks, Connect To Grow, and infoDev. (LI/HF)
8 World Bank. (2019). Future Drivers of Growth in Rwanda.
9 Retrieved from http://www.imcindia.co.in.
10 Retrieved from https://tenghana.com/https://iie.smu.edu.sg/mentors.
11 Retrieved from https://ubi-global.com.
12 Retrieved from http://www.startupchile.org/about-us/ and https://www.ycombinator.com.
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
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5.6 Pillar 3: Financing
Objective: Improve entrepreneur ability to access finance for business growth from various sources,
including equity, debt, and grants from public, private, and peer-to-peer sources.
Constraints addressed: High collateral requirements, limited investment products for early-stage
businesses, short lending tenors and grace periods, seed capital deficit, venture capital and private
equity deficit, isolated grant programs, and limited use of crowdfunding.
Policy actions:
1.1. Increase entrepreneur awareness of information on financial products. Adapt
existing portals into an entrepreneurship-oriented aggregator of loan market information,
educating entrepreneurs about loan products and rates available in different institutions and
different regions, to decrease information asymmetries and predatory lending. In collaboration
with the SME Cluster platforms, develop information products to increase access to financial
information and financial literacy of rural MSMEs. Ensure that an Entrepreneurship Portal is
accessible for multiple levels of education and ability. Draw on lessons learned from market
information systems, used widely in Africa in agriculture, in countries like Zambia, Nigeria,
Cameroon, and Uganda,
13
as well as platforms like ConnectAmericas, which provides
market making information to SMEs in Latin America, and Brazil’s SEBRAE Portal.
14
Platforms such as FinFind in South Africa have been successful at matching businesses
with sources of finance and business services.
15
(HI/HF)
1.2. Review and improve effectiveness of the BDF. Conduct an organizational assessment of
the BDF and recommend necessary organizational improvements to increase its effectiveness
and improve utilization of the BDF guarantee program to unlock capital for start-ups and
MSMEs. Learn from international best practices of such programs as USAID’s Office of
Development Credit.
16
(HI/LF)
1.3. Help financial institutions develop industry-specific financial products. Tailoring
products to specific industries will allow financial institutions to more deeply understand the
lending risks associated with different industries and products and explore options to meet
MSME investment needs. Together with the BNR, carry out a study to assess existing financial
products in the market and provide recommendations. (HI/LF)
1.4. Promote learning and exchange of best practices in financing. Work with the Rwanda
Bankers Association (RBA), investment-related groups, and financial regulators to promote
events where start-up and MSME-specialized international financial institutions come to
Rwanda to share their experience providing and regulating debt and quasi-equity products
to MSMEs and start-ups. Create clear targets for during and after events, such as creation
of lessons learned reports, ongoing dialogue and exchange platforms, piloting of certain
products, and partnerships. Focus on the issues of collateral requirements, high interest rates,
tenors and grace periods, transaction speed/processes, and regulations governing anti-money
laundering and other financial good governance requirements. (HI/HF)
1.5. Build private capital investor culture. To boost high-growth entrepreneurship and
increase access to finance for start-ups, MSMEs, and large enterprises, create a conducive
regulatory framework for private capital investors, while at the same time promoting a
private capital investment culture in Rwanda. Prepare events to raise awareness on angel
13 Retrieved from https://d3n8a8pro7vhmx.cloudfront.net/eatradehub/pages/1134/attachments/original/1438870910/AN_ASSESSMENT_OF_MAR-
KET_INFORMATION_SYSTEMS_IN_EAST_AFRICA_(1).pdf?1438870910.
14 Retrieved from https://connectamericas.com/ and http://www.sebrae.com.br/sites/PortalSebrae.
15 Retrieved from https://www.nnd.co.za.
16 Retrieved from https://www.usaid.gov/development_credit.
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
28
investors, venture capitalists, equity investors, social impact investors, family foundations, and
high net-worth individuals and their role in increasing equity investment in Rwanda. Bring
equity investors from Kenya, South Africa, and other African countries, as well as from the
United States and/or Europe, to share experiences, present data on the emerging Rwandan
entrepreneurship ecosystem, and examples of companies. Explore the creation of mechanisms
such as a matching grant fund to help launch angel investments in Rwanda; quarterly pitch
events, where start-ups, MSMEs, and large enterprises can present ideas to potential investors;
and an Investors’ Club. (LI/HF)
1.6. Pilot initiative to create a start-up matching fund. Conduct a market assessment, create
and pilot a matching grant “crowd-in” fund to co-invest 1-to-1 with angels in start-ups and
MSMEs, which will be managed by a private fund manager. To ensure the financial sustainability
of ventures, alignment them with follow-up equity investments from the KIC Innovation Fund
and bank loans, including the BDF. After piloting, review fund performance indicators, refine
and potentially expand them based on lessons learned. For example, the Government of
Malaysia’s Small and Medium Industries Development Corporation provides assistance
for start-ups in the manufacturing and service industries through a matching grant. In this
program, 50–80 percent of financing is borne by the government and the remainder by the
applicant or private investors.
17
(HI/HF)
1.7. Create a fellowship or stipend fund for entrepreneurs. Create a fellowship or stipend
fund for entrepreneurs with high-potential business ideas and demonstrated commitment to
growth. Such programs will reduce risks for entrepreneurs by providing basic income, which
they will use to build their ventures and reach milestones. Programs typically run from six
months to three years, and are run either by academic institutions, such as Georgetown
University’s Start-up Stipend Program
18
or by international organizations and
nongovernmental organizations, such as Ashoka’s Fellowship Program and many others.
19
(LI/HF)
1.8. Promote crowdfunding. Together with the Capital Market Authority, ensure that laws and
regulations support crowdfunding, which can be of great importance for pre-seed companies.
Promote via the Entrepreneurship Portal the existing crowdfunding websites (Kiva, Global
Giving, Watsi, BetterPlace), which are not known to most entrepreneurs and potential
investors. Explore opportunities to build mechanisms that are crowdfunding for projects and
companies in Rwanda modeled after international examples. (LI/HF)
1.9. Support the already existing initiative to list MSMEs on the RSE.Review the status
of an earlier initiative of the RSE and track progress with a view toward supporting the
listing of MSMEs, which has been successful in other countries, including the United Kingdom,
Canada, and Australia. There has also been some success in emerging markets: China, Poland,
and South Africa. Additionally, Tanzania has created part of an exchange specifically for small
companies. However, based on best practices, an economy must meet certain standards to
launch a successful MSME exchange.
20
(HI/LF)
17 Retrieved from https://www.nexea.co/malaysia-will-launch-a-rm2-billion-vc-pe-matching-grant-to-support-startups.
18 Retrieved from https://startuphoyas.com/stipend.
19 Retrieved from http://ashoka-arab.org/assets/Ashoka-Fellowship-Frequently-Asked-Questions.pdf and https://www.profellow.
com/fellowships/funding-for-entrepreneurs-and-we-dont-mean-venture-capital/
20 World Bank.(2015).SME Exchanges in Emerging Market Economies. Retrieved from http://documents.worldbank.org/curated/
en/102561468320934149/pdf/WPS7160.pdf.
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
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5.7 Pillar 4: Business Enabling Environment
Objective: Streamline tax requirements for new firms (both start-ups and MSMEs) to decrease
business costs for new entrepreneurs.
Constraints addressed: Burdensome taxation requirements for start-ups, low understanding of
the tax requirements, and high informality.
21
Policy actions:
1.1. Review and modify tax requirements for start-ups and MSMEs in line with
Rwandan and international best practices for encouraging entrepreneurship.
Conduct a review and modification of taxes that affect newly established businesses and
compare to international best practices. Mauritius and Estonia are good examples of
countries that have eased tax requirements on certain types of corporations to promote
entrepreneurship, investment, and enterprise growth. Implement a simplified tax program for
new companies that may include an increased exemption threshold beyond which taxes are
applicable, a grace period for new companies to start paying taxes, and time extensions for
filing taxes. Conduct a detailed analysis of the impact of proposed policy changes, for example,
ways the GOR would recover forgone income taxes in the medium term due to higher
company growth, increased employment, and increased company survival rates. (HI/HF)
1.2. Increase awareness for entrepreneurs about the benefits of formality and
disadvantages of operating informally. According to the EICV5, informality reaches up
to 93 percent of existing businesses, most of them in rural areas. There is a need to create
awareness for entrepreneurs about the benefits of formality and disadvantages of operating
informally, as well as to streamline incentives to reduce informalities, for example, reducing
the costs associated with business registration and operation (licenses, etc.).(HI/HF)
1.3. Increase awareness of tax requirements. Pilot initiative to encourage each new
registered business owner to go through an orientation session on Rwanda’s tax system, to
ensure that every entrepreneur understands the tax system and his/her duties. In addition,
create a tax educational booklet to be distributed to existing businesses and/or made available
via the Entrepreneurship Portal and other relevant websites. (LI/HF)
5.8 Pillar 5: Markets and Value Chains
Objective: Expand access to domestic and export market opportunities for entrepreneurs.
Constraints addressed: A limited domestic market, low value-added exports, constraints to
operation of cross-border traders, high commodity price fluctuations due to inefficient warehousing
and inventory management, limited access to government procurement, market information deficit,
and low compliance with standards.
22
21 Policy actions would stimulate entrepreneurs to become formal. According to stakeholder interviews, the main reason why
entrepreneurs chose informality, risking government penalties and other liabilities, is because of the perceived high costs
associated with formality.
22 Increased awareness of market opportunities and reduced perceived costs of compliance with required standards will incentivize
more businesses to become formal.
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
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Policy actions:
1.1. Review Rwanda Cross-Border Trade Strategy. Carry out a review of Rwanda’s Cross-
Border Trade Strategy, and ensure that the challenges faced by small-scale cross-border
traders are addressed. These include access to finance, security, access to information on taxes/
duties and standards, and informal fines. Provide guidance for traders on implementation of
the Common Market for Eastern and Southern Africa (COMESA) and EAC simplified trade
program and capacity building for traders in bookkeeping, accounting, and business planning.
(LI/HF)
1.2. Improve warehousing systems. In line with the Strategic Plan for Agriculture Transformation
4, improve cost-efficiency of existing warehousing systems; build trust between farmers,
transporters, and warehouse owners; improve farmer delivery on pre-season contracts; and
build the capacity of farmer cooperatives to utilize existing warehousing systems. Improved
warehousing systems will help stabilize prices and avoid product waste, and can have a high
impact on small entrepreneurs’ ability to manage costs and sell more efficiently. (HI/LF)
1.3. Make government procurement opportunities more accessible to newer, smaller
companies. To support implementation of the Made in Rwanda’s policy action to enhance
the local preference in public procurement, create mechanisms that stimulate more Rwandan
companies to bid on government procurements and link them to business support mechanisms
for assistance. For example, conduct awareness workshops between procuring agencies and
business owners, update and disseminate via the Entrepreneurship Portal the list of Made in
Rwanda products available for public procurement, set up an information desk for businesses
with the PSF, and implement an e-payment system for suppliers. The UK and Singapore
have succeeded in making government procurement more inclusive and helping SMEs go
through the process.
23
(LI/HF)
1.4. Improve access to market information. Via the Entrepreneurship Portal, provide
relevant market information for start-ups, MSMEs and large enterprises to decrease market
information asymmetries and business costs, promote B2B opportunities between buyers and
sellers, including Made in Rwanda-supported business opportunities, and connect businesses
with input providers and anchor firms in relevant value chains in support of the PSDYE
priorities. (LI/HF)
1.5. Facilitate adoption of standards. To ensure that start-ups, MSMEs, and large enterprises
adhere to relevant standards, conduct a study on how to ease and prioritize standards
development across firm sizes in priority sectors as per the Made in Rwanda policy. Ensuring
that only relevant standards are required will diminish the costs of adopting them and promote
compliance. The study will also be accompanied by a communications initiative through the
Entrepreneurship Portal to ensure that entrepreneurs are aware of the standards that apply
to their businesses and how they can comply. Coordinate with Made in Rwanda initiatives to
improve standards and upgrade quality infrastructure and technology for Made in Rwanda
priority value chains. (LI/HF)
1.6. Review and update the SME Cluster Strategy. Conduct or update the value chain
analyses for targeted clusters and identify opportunities for entrepreneurs in each district.
Organize entrepreneurship forums in each district to increase awareness of business
opportunities among entrepreneurs. (LI/HF)
23 Retrieved from https://www.gov.uk/guidance/doing-business-with-government-a-guide-for-smes and https://www.
mof.gov.sg/Newsroom/Media-Articles/New-procurement-guide-to-help-SMEs-bid-for-government-contracts-gather-
feedback.
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5.9 Pillar 6: Technology and Infrastructure
Objective: Improve entrepreneur access to technologies and innovations required for business
growth and productivity.
Constraints addressed: Unreliable provision of electricity and low-tech agriculture.
Policy actions:
1.1. Promote reliable power solutions. Increase incentives to private power distribution
organizations to provide a reliable electricity supply. (HI/LF)
1.2. Increase coordination between entrepreneurship clusters and government
infrastructure planning. Prioritizing entrepreneurship clusters in government infrastructure
planning to increase the utilization of energy and improved roads into and out of markets and
trading centers. Well-connected roads and reliable electricity can enable MSMEs to achieve
economies of scale, reduce costs, and increase MSME viability. (HI/LF)
1.3. Promote private sector-driven supply of improved agricultural technologies.
Strengthen technology transfer efforts, for example, in irrigation, from world leaders in
agricultural technologies such as Israel, the United States, and Brazil (Embrapa).
24
Develop new and strengthen existing cooperation programs, including sending Rwandan
agri-tech entrepreneurs to international fairs and training, bringing expatriates to work in
Rwandan companies and on farms, and promoting B2B events and business opportunities.
Support new business models for technology suppliers to invest in Rwanda or develop local
distribution partnerships with exporters and high-value producers to expand local sales.
Increase awareness of available import tax incentive programs. (LI/HF)
1.4. Improve digital literacy and promotion of data storage solutions. The MINICT
in collaboration with development partners, will increase training and promotion of digital
literacy to youth, women, people living with disabilities, and MSMEs in required digital skills to
support the growth of entrepreneurship and technology adoption and support in promotion
of data storage solutions. (LI/HF)
5.10 Pillar 7: Entrepreneurial Culture
Objective:
Promote the culture of entrepreneurship and access to business opportunities for youth, women,
and people living with disabilities.
Constraints addressed: Risk-averse attitude; entrepreneurship not well perceived; low acceptance
of failure; and women, youth, and people living with disabilities do not always enjoy equal opportunities
as entrepreneurs.
Policy actions:
1.1. Promote exchanges within Rwanda, regionally and internationally to encourage
entrepreneurial culture. Organize events with local, regional, and other entrepreneurs
to share their experiences with the Rwandan business community. Increase entrepreneur
awareness of existing local, regional, and international exchange, exposure, and mentorship
programs in regional and other markets. Provide additional support or access to existing
local and regional initiatives such as YouthConnekt Africa (YCA)
25
or Tony Elumelu
24 Retrieved from https://www.embrapa.br/en/international.
25 Retrieved from https://www.youthconnektafrica.org.
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
32
Foundation Programme.
26
Another example is the Erasmus for Young Entrepreneurs,
a cross-border exchange program that provides new or aspiring entrepreneurs an opportunity
to learn from experienced entrepreneurs in other participating countries.
27
(HI/HF)
1.2. Ensure equal opportunities and support for all entrepreneurs. Entrepreneurship-
support organizations should ensure that women, youth, and people living with disabilities, as
well as entrepreneurs of all backgrounds, are offered the same treatment and opportunities. (HI/
HF)
1.3. Increase equitable awareness. Create awareness of entrepreneurship and access to finance
opportunities among women, youth, and people living with disabilities using community-based
mechanisms, for example, through Umuganda and community meetings. (HI/HF)
EXPECTED IMPACT
Estimated Economic impact of EDP
Over the next five years plan aligned to NST1 remaining period, the implementation of EDP is expected
to be at the center of GoR’s priorities and it will contribute toward the realization of the NST1. The
EDP’s estimated impact will depend on the extent the policy is comprehensively implemented and
will seek to systemically change the entrepreneurship and SME operating landscape. Such a systemic
shift will have a substantial multiplier effect on all sectors throughout the Rwandan economy. As a
result, implementation success will dramatically affect the overall policy impact across the economy.
The potential impact of the EDP on Rwanda’s economic transformation can be benchmarked against
international averages on improved entrepreneurial activity.
The literature has proved that a 1 percent increase in new business start-ups in one year improves
GDP/capita in the subsequent year by approximately 0.24 percent relative to mean values, reduces
unemployment by 0.13 percent, increases exports/GDP by 0.03 percent, and increases patents
per population by 0.29 percent
28
. Rwanda will achieve an equivalent or greater impact against the
international average cited above (relative to the correlation between start-ups and increases in
GDP and exports). For example, for every one percent increase in startups, Rwanda will expect
a corresponding 0.24 percent increase in GDP or an estimated increase of RWF19.6 billion ($21
million) in GDP the following year. Similarly, for every one percent increase in startups, Rwanda will
anticipate a corresponding increase in exports of 0.03 percent or an estimated increase of RWF47.5
million ($50,972) in exports.
Over the life of the EDP, the impact will be compounded annually with the expectation that the
percentage of startups will increase every year of implementation if the Policy is fully implemented.
It should also be noted that these forecasts, while providing a credible estimate on the impact of the
EDP, only represent a portion of the overall expected impact of the EDP on GDP and exports. More
specifically, it is anticipated that the full impact from EDP implementation should result in a greater
impact to GDP and exports by also considering the scale-up of already existing MSMEs. Additional
analyses based on the specificities of Rwanda’s context are needed to gain insight into the full effect
of the EDP. A specific impact evaluation system for Rwanda to ascertain economic impact of EDP
will be developed after its approval.
26 Retrieved from https://www.tonyelumelufoundation.org/programmes.
27 Retrieved from https://www.erasmus-entrepreneurs.eu; http://www.startupexchanges.com; https://exchanges.state.gov/non-us/program/
international-visitor-leadership-program-ivlp; and https://www.german-african-entrepreneurship.org/student-exchange.
28 Douglas Cumming, Soa Johan, and Minjie Zhang, “The Economic Impact of Entrepreneurship: Comparing International Datasets”, Corporate
Governance: An International Review, 2014, 22(2): 162–178
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
33
6. IMPLEMENTATION PLAN
6.1 Current Institutional Framework
Currently, the implementation of interventions to support entrepreneurship development in Rwanda
is scattered across different institutions and agencies. The key players are: MINICOM, MINECOFIN,
RDB, MYCULTURE, BDF, Rwanda Revenue Authority (RRA), Rwanda Standards Board (RSB), National
Industrial Research and Development Agency (NIRDA), Rwanda Cooperative Agency (RCA), MINICT,
MINALOC, Development Bank of Rwanda (BRD), Rwanda Information Society Authority (RISA), and
PSF.
MINICOM, as a line Ministry, plays an oversight and coordination role in the development and
implementation of SME policies in collaboration with different stakeholders.
RSB provides standard-based solutions for entrepreneurs, develops and awards quality certifications,
and enforces standards for Rwandan products to ensure high quality of domestic production.
RCA registers and regulates cooperatives in Rwanda and promotes entrepreneurship among
cooperative members.
NIRDA conducts R&D in new and innovative industrial technologies, incubates entrepreneurs, as
well as promotes the adoption of improved technologies by Rwanda’s private sector.
RDB focuses on accelerating targeted export-oriented investments, fostering an attractive business
environment, and forming private sector partnerships in key value chains.
MYCULTURE acts as a catalyst and facilitator for socioeconomic empowerment of young
entrepreneurs.
MINICT addresses national priorities for economic growth and poverty reduction through
development and coordination of national information technology, communication and innovation
policies and programs.
RISA ensures smooth implementation of all ICT projects and streamlines research, infrastructure,
and innovation within the ICT sector.
RRA collects taxes, oversees and implements regulations related to taxes and duties, and ensures
compliance with the tax program.
MINECOFIN oversees financial resources to support government initiatives to promote
entrepreneurship, SME growth, and job creation.
6.2 EDP Implementation Framework
The success of the EDP will depend on the efficiency of its implementation and, particularly, on the
effectiveness of the M&E system to measure the impact of its interventions. A first step is therefore
clarifying the roles and responsibilities of each stakeholder.
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
34
Figure 8: EDP Institutional Framework
To a great extent, EDP will be implemented using existing institutional frameworks.
The institutional framework that supports implementation of the policy and the M&E structure
have thus been designed to reflect this and to allow for a dynamic and responsive policy, which will
enable its continuous updating and upgrading to reflect changes in the operating environment and to
incorporate lessons learned during the course of implementation. MINICOM, RDB, MINEDUC,
MYCULTURE, MINECOFIN, MINALOC, and PSF are the key leading institutions
implementing the seven pillars of the EDP. Ensuring the capacity of these seven lead institutions
is, therefore, crucial for the success of this policy, and entrepreneurship needs to be owned by each
stakeholder at the most senior level. MINICOM, as the overall policy lead, will play the role of
coordinator and high-level policy supervisor. As evident Figure 8, the seven leading implementers will
be assisted by a wide range of GOR stakeholders, each with their own piece of the puzzle. Close
coordination is paramount to overall success.
6.3 EDP Institutional Framework
MINICOM Department of Industry and Entrepreneurship Development
Given the cross-cutting nature and complexity of required work to implement EDP, the current
Entrepreneurship Development Unit within MINICOM under Industry and Entrepreneurship
Department will technically coordinate the implementation and monitoring of EDP, as well as support
implementing institutions to play their roles throughout. The Department reports to the Permanent
Secretary.
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
35
PSDYE Sector Working Group (SWG)
The PSDYE SWG is a key coordinating forum, where GOR stakeholders in the private sector
development and employment sectors coordinate with development partners, civil society, and
academia. This forum holds a key role in successful EDP implementation by leveraging development
partner support and expertise, which will be crucial for overall success. The sub-sector working group
on youth employment will serve as a platform for joint quarterly EDP implementation monitoring.
Annual Rwandapreneurship Summit
The Rwandapreneurship Summit will take place every year. This summit will be hosted by MINICOM,
in partnership with entrepreneurs, academia, civil society, and development partners. This initiative will
provide an opportunity for entrepreneurs to network, share experiences, exhibit, pitch businesses, and
participate in mentorship sessions. MINICOM will take the lead in following up the implementation
of proposed recommendations by engaging with the necessary actors and providing policy guidance.
YouthConnekt Africa (YCA)
YCA is a platform designed to connect youth for socioeconomic transformation. Through YCA, the
GOR will seek to increase entrepreneurial awareness of existing local, regional, and international
exchange, exposure, and mentorship programs in regional and international markets.
6.4 EDP Impact Monitoring and Evaluation
The GOR, through MINICOM, will put significant effort into monitoring the implementation of
this policy and taking appropriate actions when expectations are not met. The GOR will adopt the
National and International Performance Monitoring Index, which will create a framework to measure
the effectiveness of the EDP.
This will include putting into place a mechanism to measure the performance of the
entrepreneurship development ecosystem in Rwanda to monitor the health of the domestic
entrepreneurship ecosystem and provide a picture of how Rwanda performs globally. MINICOM,
in collaboration with the NISR, will develop an impact M&E tool benchmarked against international
best practices such as the Global Entrepreneurship Development Index (GEDI) and Global
Entrepreneurship Monitor (GEM), which measure the quality and dynamics of entrepreneurship
ecosystems at national and regional levels.
6.5 Financial Implications
The cost of implementation set under the EDP implementation plan during the next five years
(2019–2024) is estimated at RWF21.9 billion, with an average budget per pillar amounting to RWF2.7
billion. The annual average budget is estimated at RWF4.4 billion, equivalent to 20 percent of the total
estimated budget to implement the EDP.
A detailed costing is provided in the Implementation Matrix (see Annex A).
Table 3 summarizes the cost implications by pillar.
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
36
Table 3: EDP Estimated Cost
Pillar Budget in Millions of RWF in 5 Years Share
Pillar 1: Human Capital and Management 4,173 15%
Pillar 2: Business Support 4,436 16%
Pillar 3: Financing 1,267 5%
Pillar 4: Business Enabling Environment 1,710 6%
Pillar 5: Markets and Value Chains 3,500 13%
Pillar 6: Technology and Infrastructure 5,905 21%
Pillar 7: Entrepreneurial Culture 6,050 22%
Crosscung Areas 710 3%
Total 27,751 100%
Source: EDP Implementaon Matrix, September 2019
6.6 Legal and Regulatory Implications
The EDP will require further legal and regulatory reforms. Implementation of some of the policy
actions will require a review of the current legal framework, including:
• Regulations for private capital investors (angel investors, venture capitalists, equity investors,
social impact investors, family foundations, and high net-worth individuals), crowdfunding, and
start-up matching funds.
• Review of the tax program for start-ups.
6.7 Implementation Matrix
Table 4 is the summarized Implementation Matrix, with details of the output, outcomes, indicators,
and responsible agency organized by pillar. The full Implementation Matrix is in Annex A.
Rwanda Entrepreneurship Development Policy37
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
Table 4: Summarized EDP Implementation Matrix
Outcome Output Indicator Baseline
Targets by
2024
Activity
Responsible
Agency
Estimated
Budget (FRW
in Million)
Timeframe
Pillar 1: Human Capital and Management
Improved Human
Capital and
Management
Marketability of
tertiary academic
programs improved
% of tertiary
graduated employed
within a year after
graduation
75% TBD
1. Create an action plan to integrate e-learning,
including MOOCs from leading global universities
into the curriculum. (Strengthening linkages
between local and global institutes)
2. Provide web-based training or webinars on
digital marketing, service delivery and other
essential courses to improve and increase online
capabilities for entrepreneurs
3. Assess and adapt content of the curriculum and
conduct online ToTs for teachers or physical ToTs
in smaller cohorts
4. Create a plan for tertiary institutions to better
integrate industry linkages in their curricula.
5. Organize trainings for teachers to be able to
deliver marketable academic program in the
curriculum.
6. Organize guest-lecture workshops with industry
leaders and professionals to teach and provide
guest lectures and seminars to tertiary students.
7. Organize competitions within and inter-tertiary
institutions on specific industry problems for
solution by science by business students
8. Integrate paid internship programs in curricula
requirements for graduation in business and
engineering courses
9. Create an action plan to introduce workplace
learning, a model that includes practical training.
10. Support creation of active alumni associations
among business graduates.
MINEDUC
(Lead), RP,
WDA, REB,
HEC
920 MT
Applied skills into
secondary school
entrepreneurship
curriculum
strengthened
Updated
secondary school
entrepreneurship
curriculum to
become operational
2014-15
Entrepreneurship
curriculum
Updated
secondary school
entrepreneurship
curriculum
operationalized
1. Create an action plan to review current
entrepreneurship curriculum in secondary schools
and integrate applied skills
2. Prioritize entrepreneurship by adapting digital-
friendly educational tools like zoom, skype, webex
and facebook with the support of parents and
smaller physical cohorts in schools.
3. Organize online or/and physical (smaller cohorts)
training with teachers on how to deliver essential
training in business plan writing, basic financial
modeling, SWOT analysis, and incorporate
practical “how-to” courses in the curriculum.
MINEDUC
(Lead), R P,
WDA, REB
725 LT
Rwanda Entrepreneurship Development Policy38
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
1. Organize business competitions that test
application of applied skills such as business plan
writing, basic financial modeling, SWOT analysis,
and practical “how-to” courses, such as how to
register a business, create a prototype, make the
first sale, etc.
The reach and quality
of English language
instruction improved
Diversified english
instruction
mechanisms
available
Formal and
Informal classes
Booklets, mobile
and web based
applications
established and
operationalized
1. Create a plan to improve the reach and quality of
English teaching across the country both in-school
and out-of-school
MINEDUC
(Lead),
RP, REB,
MINALOC
1,500 LT
2. Identify and work with or promote firms which
deliver English language tutorials via digital
platforms in developing markets.
Availability of
technical skills
training outside of
formal education
improved
Number of
entrepreneurs who
acquired technical
skills outside of
formal education
431122 (Source:
LFS)
TBD
1. Support the development of private technical skills
training initiatives
2. Support the private sector providers to deliver
technical training to out-of-school populations:
Identify existing private training institutions and
understand their training skills specialties
3. Create a network of these institutions to share
experiences and effectively coordinate activities
4. Provide advocacy, financial and non-financial
support to subsidize training and facilitate digital
adaptability
5. Encourage institutes to adapt to technological
approaches and integrate entrepreneurship
components (Take advantage of existing e-learning
tools and platforms)
6. Revamp the sector-skills council (private sector
needs to take the lead)
7. Promote on job learning
8. Create an action plan to provide training
opportunities to disadvantaged groups, including
women, youth and persons with disabilities
MINEDUC
(Lead), RP, REB
489 LT
Business governance
improved
Number of
enterprises with
operational
governance
structures
TBD TBD
1. Create an entrepreneurship portal for
dissemination of information
2. Design mechanisms to provide concise, relevant
information to start-ups, MSMEs and large
enterprises in the form of electronic or paper
brochures
3. Develop short guides on basic business governance
4. Conduct short term courses and trainings on basic
business governance
RDB (Lead),
MINICOM, PSF,
MINALOC
539 LT
Rwanda Entrepreneurship Development Policy39
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
Pillar 2: Business Support
Improved business
systems for
entrepreneurs
Enterprises access
to tailored business
consulting services
improved
Number of
enterprises that
accessed tailored
business advisory
services
TBD TBD
1. Identify existing BDS providers and incubation
centres; and agree on reporting and feedback
mechanisms
2. Create a performance-based framework to engage
professional BDS providers
3. Review the roles and responsibilities of Business
Development Advisors (BDAs) and develop
recommendations to improve outreach and
effectiveness of their services across the country
4. Identify BDAs (public & private) capacity needs in
response to circumstances like COVID
5. Consult with BDAs along with banks and other
development partners on the economic recovery
packages
6. Ensure continuous capacity building and
professionalization of proximity BDAs
7. Establish a coordination platform for BDAs across
the country to improve efficiency and effectiveness
in service delivery.
8. Create a competitive business model in accord
with development partners focusing on activities
like business training, consultative meetings and
stakeholder engagements to enhance business
competitiveness
9. Adapt entrepreneur coaching and consultancies to
current needs (COVID 19 effects).
RGB
(Lead), RDB,
MINICOM and
MINALOC
500 MT
Availability of high
quality business
consultants improved
Number of
consultants that
provide high quality
business consultancy
services
TBD TBD
1. Identify existing consultants providing business
services
2. Develop training-of-trainers courses for
business consultants in top business schools
and in partnership with consultancies, where
the certificates of completion become a market
standard for quality
3. Offer tax write-offs for consulting firms that
provide services pro-bono to start-ups and MSMEs
4. Ensure those who deliver consultancy services are
internally recognized by competent organs.
RDB (Lead),
MINICOM,
MINECOFIN,
MINALOC and
PSF
221 LT
Development of
mentorship networks
supported
Number of
entrepreneurs
who benefited
from mentorship
networks
TBD TBD
1. Identify mentorship networks
2. Promote mentorship from successful
entrepreneurs and business leaders, potentially
via angel investing, leveraging private and social
intermediaries
RDB (Lead)
MINICOM,
RDB,
MINALOC and
PSF
190 MT
Rwanda Entrepreneurship Development Policy40
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
1. Support mentor networks in partnership with
existing incubators and accelerators, academia, and
start-ups, MSMEs and large enterprises
2. Engage industry expert with new entrepreneurs
through explaining the importance of mentorship
for the growth of Rwanda
3. Introduce incentives for mentors such
opportunities to expense time and a chance to
attend special events for networking
4. Identify MSMEs with high growth potential and
support them to graduate to the next stage.
(especially when they demonstrate to have a
multiplier effect on the economy)
5. Establish a fund to pay for part of services on
behalf of MSME
New models of
provincial business
incubators piloted
Number of new
models of business
incubators piloted at
provincial business
level
Nil One per
province
1. Identify and assess performance of existing
incubators
2. Foster the development of start-up incubators,
reinforcing start-ups link to leading institutions
nurturing innovation (e.g. KIC, CMU, NIRDA,
universities)
3. Pilot and Launch business incubators in provinces
(focused on agri-tech and sector-agnostic) in
partnership with private sector, the central and
local government, and secondary and tertiary
education institutions
4. Establish performance metrics and monitoring and
evaluation mechanisms
RDB (Lead),
MINICOM,
MINEDUC,
HLIs,
MINALOC
and RP
1,385 LT
Development of
Kigali Innovation City
(KIC) supported
KIC fully operational KIC
infrastructure
completed
KIC fully
operationalized
1. Coordinate with MINICT and RDB and support
KIC’s incubation and acceleration initiatives for
high-tech entrepreneurship
2. Engage development partners to support KIC to
integrate best practices from global benchmarks
like Start-Up Chile and world-class accelerators.
MINEDUC
(Lead),
MINICT, RDB
100 MT
Linkages with
international
enterprises
support institutions
strengthened
Number of
regional and global
institutions that
provide technical
assistance to start-
ups , MSMEs and
large enterprises
linked with Rwandan
enterprises
TBD TBD
1. Identify and attract regional and global institutions
that provide technical assistance to start-ups,
MSMEs and large enterprises
2. Organise events to link Rwandan entrepreneurs
with attracted regional and global institutions
3. Organise an annual Rwandapreneurship Summit
MINICOM
(Lead), RDB,
RCB, MINICT,
MYCULTURE,
PSF
2,040 Continuous
Rwanda Entrepreneurship Development Policy41
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
Pillar 3: Financing
Increased access
to finance for
entrepreneurs
Access to
information on
financial products for
Startups, MSME and
Large enterprises
improved
Information on
available financial
products in place
2017 Financial
products
booklet
Information
on financial
products
updated and
disseminated
electronically or
in hard copy
1. Update information on the existing financial
products booklet
2. Develop and put in place other mechanisms to
avail information on financial products
3. Upload all information on available financial
products on Entrepreneurship Portal
MINICOM
(Lead),
MINECOFIN,
BNR and
Banker’s
Association
90 ST
Development of new
industry-specific
financial products
facilitated
New industry-
specific financial
products in place
TBD
New industry-
specific financial
products
operationalized
1. Carry out a study on existing financial product in
Rwanda market
2. Engage and encourage FIs to implement
recommendations from the study
3. Support development and operationalization of
new industry specific financial products
MINECOFIN
(Lead), BNR,
Banker’s
Association,
MINICOM
200 MT
Learning and
exchange of best
practices in financing
promoted
Number of learning
and exchange of
best practices
events organised
Nil 5 (one per year)
Organize regular dialogues on financing through learning
and best practice exchange
MINECOFIN
(Lead), BNR,
Banker’s
Association,
MINICOM
250 MT
BDF effectiveness
reviewed and
improved
Number of
entrepreneurs
accessed BDF
services and the
total value of loans
35,773 accessed
BDF services
with total loan
of value of
FRW 196 billion
(2011-2018)
TBD
1. Conduct an organizational assessment of BDF,
its services (products) and propose measures to
improve
2. Oversee the implementation of proposed
improvements
3. Strengthen and Regularly conduct monitoring,
evaluation and learning of BDF operations
4. Boosting BDF Guarantee capacity
5. De-risking access to finance for existing and new
Guarantee fund schemes
MINICOM
(Lead), BRD,
MINECOFIN,
BDF
250 MT
Private capital
investment culture
promoted
Number of private
capital funds
operating in Rwanda
TBD Angel investors,
venture
capitalists,
equity investors,
social impact
investors, family
foundations and
high net-worth
individuals,
crowdfunding
and start-up
matching funds.
1. Develop private capital investment laws and
regulations (including identification and review of
existing regulations)
2. Approve developed laws and regulations
3. Oversee implementation of private capital
investment
4. Regularly monitor, evaluate and learn; make
increment improvement to the system as needed
MINECOFIN
(Lead), BNR,
MINICOM,
RDB
154 ST
Rwanda Entrepreneurship Development Policy42
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
Creation of
fellowship/stipend
fund for high
growth potential
entrepreneurs
supported
Fellowship/stipend
fund in place
TBD Fellowship/
stipend fund
created and
operationalized
1. Conduct a feasibility study to establish the fund
2. Mobilize funds
3. Launch and operationalize the fund
MINICOM
(Lead),
MINECOFIN,
RDB, BRD
123 LT
Existing initiatives
to facilitate listing
of MSME on the
Rwanda Stock
Exchange (RSE)
supported
Number of MSMEs
listed on the RSE
TBD TBD
1. Promote listing of MSMEs on the Rwanda Stock
Exchange (including support to existing initiatives)
2. Regularly monitor, evaluate and learn; make
increment improvement to the initiative as needed
RSE (Lead),
MINECOFIN,
MINICOM,
RDB
200 MT
Pillar 4: Business Enabling Environment
Improved
Business
Environment
Tax requirements
for start-ups and
MSMEs reviewed
and modified in line
with the Rwandan
and international
best practices
for encouraging
entrepreneurship
Conducive tax
regime for start-ups
and MSMEs in place
Current tax
regime and
investment code
New conducive
tax regime for
start-ups and
MSMEs applied
1. Conduct a review and modification of the current
tax regime
2. Conduct a detailed analysis of the impact of
proposed policy changes
3. Implement a simplified tax regime for start-ups and
MSMEs
MINECOFIN
(Lead), RRA,
PSF, RDB and
NINICOM
100 MT
Awareness of
benefits of formality
and disadvantages of
operating informally
for entrepreneurs
increased
Number of
awareness
campaigns organized
TBD Two campaigns
every year per
district
Quarterly media
campaigns
1. Organize awareness campaigns at District level,
2. Conduct quarterly media campaigns
MINALOC
(Lead), RDB,
MINICOM,
RRA,
(Districts) and
PSF
1,000 Continuous
Awareness of
tax requirements
increased
Number of
awareness
campaigns organized
TBD Two campaigns
every year per
district
Quarterly media
campaigns
1. Organise awareness campaigns at District level
2. Pilot initiative to encourage each new registered
business owner to go through an orientation
session on Rwanda’s tax regime
RRA (Lead),
RDB, PSF and
MINALOC
(Districts)
560 Continuous
Social enterprising
and Start-ups/high
growth enterprises
promoted
Conducive enabling
environment for
social enterprises
and start-ups in
place
TBD New conducive
regulations
for social
enterprising
and start-ups
developed
1. Consider social enterprising and start-ups as
unique sub-categories under the existing business
registration portfolio
2. Put in place special mechanisms, tools and
regulations to support and promote social
enterprises and start-ups
RDB (Lead),
MINICT,
MINICOM,
MYCULTURE,
RPPA
50 Continuous
Rwanda Entrepreneurship Development Policy43
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
Pillar 5: Markets and Value Chains
Markets and Value
chains improved
Rwanda Cross-
Border Trade
Strategy reviewed
Revisited cross
border trade
strategy in place
2012 CBT
strategy
Revised cross
border trade
strategy validated
and implemented
1. Review CBT strategy
2. Validate the CBT strategy and oversee its
implementation
MINICOM
(Lead), RRA,
MINALOC and
DGIE
300 LT
Warehousing systems
improved
Improved
warehousing
systems in place
TBD Improved
warehousing
systems
operationalized
1. Review the current warehousing systems to
identify gaps and propose measures to improve
them
2. Organize Private-Public Dialogue to address
challenges and consider recommendations
3. Oversee the implementation of recommendations
MINAGRI
(Lead),
RAB, NAEB,
MINICOM and
PSF
200 MT
Government
procurement
opportunities made
more accessible to
start-ups and MSMEs
Percentage of
government
procurement
dedicated to
Startups and MSMEs
TBD Increased
government
procurement
from start-ups
and MSMEs
1. Conduct awareness workshops between procuring
agencies and business owners
2. Update and disseminate via existing popular
channels including the Entrepreneurship Portal
the list of Made in Rwanda products available for
public procurement
3. Regularly monitor, evaluate and learn
MINECOFIN
(Lead), RPPA,
PSF, MINICT
and MINICOM
100 MT
Access to
information on
market opportunities
improved
Information on
available market
opportunities in
place
Trade portal Information
on market
opportunities
updated and
disseminated
Entrepreneurship
portal
1. Update information on the existing trade portal
2. Upload all information on available market
opportunities on Entrepreneurship Portal
3. Develop and put in place other mechanisms to
avail information on market opportunities and
market data for local entrepreneurs and potential
investors
MINICOM
(Lead), RDB,
PSF, MINAFFET
450 MT
Adoption of
standards facilitated
Standard compliance
support programs
in place
Zamukana
ubuziranenge
program
Standard
compliance
support
programs by
value chains
1. Conduct a study on how to ease and prioritize
standards adoption by entrepreneurs in priority
sectors
2. Strengthen existing support program for standards
adoption by entrepreneurs in priority value chains
RSB (lead),
MINICOM,
NIRDA, NIRDA
2,000 MT
SME cluster strategy
reviewed and
updated
Updated SME
cluster strategy in
place
2012 SME
cluster strategy
SME cluster
strategy updated
1. Review the existing SME cluster strategy by
district
2. Validate and oversee implementation of updated
SME cluster strategy
3. Organize entrepreneurship forums in each district
to increase awareness on business opportunities
for entrepreneurs
MINALOC
(Lead),
MINICOM,
LODA, PSF
450 MT
Rwanda Entrepreneurship Development Policy44
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
Pillar 6: Technology and Infrastructure
Improved
Technology and
Infrastructure
support
Reliable power and
energy solutions
promoted
Reduced unreliable
supply of power
TBD TBD
1. Carry out a needs’ assessment for power and
energy among entrepreneurs
2. Support adoption of innovative and reliable energy
solutions and technologies through PPPs and
friendly regulations (i.e solar, biogas etc)
3. Increase incentives for private energy players to
ensure reliable production and distribution
MININFRA
(Lead), REG,
MINICOM,
RDB, PSF
175 Continuous
Access to quality
and affordable water
supply ensured
Accessible quality
and affordable
water supply
TBD TBD
1. Mapping and prioritizing entrepreneurship clusters
i.e agriculture and agribusiness, services, tourism,
hospitality etc
2. Policy and regulatory review aimed at supporting
access to reliable, affordable and clean water for
entrepreneurs including Business Centres.
3. Encourage and sensitize entrepreneurs to operate
in areas that are connected with reliable water
supply systems
MININFRA
(Lead),
WASAC,
MINICOM,
MINALOC,
RDB, RURA
& PSF
1,000 MT
Coordination
between
entrepreneurship
clusters and
government
infrastructure
planning increased
Business needs
and infrastructure
planning in harmony
Yearly
submission of
infrastructure
needs to
MININFRA
Annual planning
session between
Entrepreneurship
clusters and
government
infrastructure
planning
institutions is
held
1. Identify entrepreneurship clusters and
infrastructure needs
2. Prioritize entrepreneurship clusters in government
infrastructure planning
3. Organise the session between Government and
Entrepreneurship clusters
MININFRA
(Lead), REG,
MINICOM,
RDB, PSF
125 Continuous
Private-sector
driven supply of
improved agricultural
technologies
promoted
Number of new
technologies
successfully
introduced in
Rwanda
TBD TBD
1. Review existing agricultural technologies
2. Moblise the private sector to invest in improved
agricultural technologies
3. Strengthen ‘experience exchange programs’ with
more tech-savvy countries in agribusiness like
Israel, the United States and Brazil (Embrapa)
among others’
4. Leverage virtual technologies to build and
strengthen existing cooperation programs,
including online collaboration for entrepreneurs to
international agricultural fairs and training
MINICT
(Lead),
MINIAGRI,
MINICOM,
RISA
795 Continuous
Digital tools and
solutions customized
and availed
Number of digital
tools customized
and availed
TBD TBD
1. Promote local e-commerce platforms, digital
payment solutions and value chain management
systems
2. Leverage RP and FabLab’s expertise in
developing customized tech-tools and
equipment / machinery for local entrepreneurs.
3. Promote digital tools amongst entrepreneurs
across the value chains
MINICT
(Lead),
MINAGRI,
MINICOM,
MINALOC,
RISA, Provinces
& Districts
1,000
Rwanda Entrepreneurship Development Policy45
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
Entrepreneurship
ecosystem through
promotion of R&D
and Innovation
strengthened
Promoted R&D and
Innovation
TBD TBD
1. Strengthen academia and industry partnership to
support tech Innovation and R&D
2. Mobilize public and private institutions to
collaborate with education and research
institutions in implementing innovation and R&D
ideas
3. Establish funding to support collaboration between
local researchers and their peers (regionally or
globally) in developing solutions for local challenges
MINICT
(lead), RISA,
MINALOC,
MINICOM,
MINEDUC,
NIRDA
1,250
Digital literacy
improved and local
technology expertise
enhanced
% of adult digitally
included
TBD 60%
1. Provide basic digital literacy training (virtual
tools) for youth, women and persons living with
disabilities with a special focus on MSMEs and
entrepreneurs
2. Support the development of digital entrepreneurs
to leverage existing opportunities
3. Promote adoption of local solutions for
e-commerce, digital payments, marketing, customer
relationship management, etc.
MINICT
(lead), RISA,
MINALOC,
MINICOM,
MINEDUC
1,560
Pillar 7: Entrepreneurial Culture
Entrepreneurship
culture and spirit
is promoted
among Rwandan
entrepreneurs
Entrepreneurship
and Innovation key
values strengthened
and promoted from
early age
Awareness program
to promote
entrepreneurship
and innovation in
families and schools
in place
1. Establish a ‘detection and development’ program
for innovative ideas.
2. Promote local solutions opportunities and support
entrepreneurs that operate in their communities
MYCULTURE
(Lead),
MIGEPROF,
NCPD,
MINALOC, PSF
2,500 Continuous
Entrepreneurial
culture exchanges
within Rwanda,
regionally and
internationally
promoted
Number of events
on entrepreneurial
culture exchange
organized
Nil One per year
1. Organize events with local, regional and other
entrepreneurs to share their experiences with the
Rwandan business community
2. Provide additional support or access to existing
local and regional initiatives such as YouthConnekt
Africa
MINICOM
(Lead),
MYCULTURE,
MINISPORTS,
RDB
2,500 Continuous
Equal opportunities
and support
enhanced for all
entrepreneurs
Support programs
for youth, women
and persons with
disabilities in place
TBD Youth, women
and persons
with disabilities
supported
1. Facilitate entrepreneurship-support-organizations
to design specific programs for women, youth and
entrepreneurs living with disabilities
2. Conduct awareness campaigns among
women, youth and living with disabilities on
entrepreneurship and support programs
3. Conduct regular motivational talks from serial
entrepreneurs to inspire MSMEs.
4. Conduct regular traditional and social media
campaigns to destigmatize entrepreneurship
failures or hurdles
MYCULTURE
(Lead),
MINEDUC,
MIGEPROF,
NCPD,
MINALOC, PSF,
MINICOM
1,050 Continuous
Rwanda Entrepreneurship Development Policy46
RWANDA ENTREPRENEURSHIP DEVELOPMENT POLICY
Cross Cutting Areas (Interventions)
Implementation of
EDP supported
Entrepreneurship
Portal established
Entrepreneurship
portal operational
SME Portal,
trade Portal,
etc…
Entrepreneurship
portal
operationalized
1. Conduct an assessment on existing portals
2. Establish entrepreneurship portal
3. Raise awareness of the entrepreneurs on
entrepreneurship portal
4. Organize capacity building sessions for users of
the entrepreneurship portal
5. Regularly update the entrepreneurship portal
MINICOM
(Lead), RRA,
PSF, RDB,
MYCULTURE,
RISA, MINICT,
MINALOC and
NCPD, RSB,
RCA, NIRDA
350 MT
EDP Communication
strategy developed
and implemented
EDP
Communication
strategy in place
Nil EDP
Communication
strategy validated
and implemented
1. Developed EDP Communication strategy
2. Conduct EDP awareness country-wide
3. Organize awareness sessions to promote
entrepreneurship and increase MSME awareness of
EDP and the Entrepreneurship Portal
MINICOM
(Lead),
MINALOC,
RDB,
MINECOFIN,
RRA, PSF, RSB,
RCA
300 MT
EDP visits on
bechmarking
conducted
Bechmarking visits
report
Nil Benchmarking
visits to Chile,
Singapore and
Israel conducted
1. Organise EDP benchmarking visits
2. Conduct and draw relevant best practices from
EDP benchmarking visits
MINICOM
(Lead), RDB,
MINEDUC,
MYCULTURE
MINECOFIN,
MINICT, BNR
and PSF
60 ST
