Advertisement

Rwanda banks on $50m AfDB loan to grow technical skills

Tuesday July 26 2016
RwandaTaximoto0805tc

Motorcycle taxi riders in Nyamirambo Stadium, Kigali. PHOTO | FILE

Rwanda has borrowed $50 million from the African Development Bank to finance the development of skills, employability and entrepreneurship among women and youth.

While signing for the loan, finance and planning minister Claver Gatete said the funds will be channelled towards the development of middle level technical skills with the aim of building the country’s industrial sector.

“We want to put more effort in developing the industrial sector which currently contributes a mere 14 per cent to the country’s GDP. This financial support will ensure that the education sector produces the necessary skills to drive industrialization with our eyes on the Made in Rwanda campaign,” the minister said.

Mr Gatete said the funding was in line with AfDB’s new High-Five program which includes among other components, the integration and industrialization of Africa.

Private sector led economy

AFDB Resident Representative, Negatu Makonnen said that the government’s efforts to push for a private sector led economy will remain an elusive dream unless the critical 21st century skills are developed.

Advertisement

“It is only the private sector that can meet the high employment demand and help the Rwandan government achieve its goal of creating 200,000 off-farm jobs. However, for the private sector to be fully involved, they not only need good roads, a steady energy supply and other infrastructure, they need a highly skilled work force,” Makonnen said.

According to the latest Integrated Household Living Conditions Survey (EICV4) report at least 146,000 off-farm jobs having been created in Rwanda annually since 2011, while 148,000 new businesses have been established between 2012 -2014.

The private sector in Rwanda has long complained of the huge skills gap, with many employers expressing concern over half-baked or graduates with skills that do not match the labour market requirements.

Advertisement