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Entrepreneurship a way out of poverty for Rwanda youth

Friday July 20 2012
skills

Young women at a vocational school. The government has encouraged youth to join vocational institutions. Photo/File

More than 10 per cent of Rwanda’s youthful population is reported to have come out of poverty after recording improved livelihoods.

According to the Economic Development and Poverty Reduction Strategy report findings, the achievement is a result of the contribution of young entrepreneurs in innovation.

Entrepreneurship, a key driver of economic empowerment, is being encouraged by the government and targets the country’s youth, the group worst hit by unemployment.

As a result, the government graduates about 100 youths who have excelled in project design and financing, every six months.

The government, for example, has already committed more than Rwf10 billion to the Business Development Fund to finance business projects initiated by the youth.

According to reports, approximately 67 per cent of Rwanda‘s population is under 25 years old, and the number of those entering the labour market has continued to increase sharply, resulting in high youth unemployment, due to the inability of the economy to absorb them.

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In the recent past, technical training has been a crucial programme for the government in its effort to tackle unemployment, while at the same time promoting the spirit of entrepreneurship among youth and women.

READ: Kigali to commit $4m to basic skills training
According to the Private Sector Federation, the country has 38 technical secondary schools and 109 vocational training centres.

Maurice Kuradusenge, a 22-year-old electrician, invented a sewing machine that uses renewable electricity after undergoing an intensive six months training in innovation and electrical wiring.

“After I dropped out of school, I didn’t know where to go; a friend took me to the Community Socio-Economic Development Initiatives where I registered as a trainee. We later formed a co-operative and today we have started to enjoy the fruits of our technical trainings,” he said.

Mr Kuradusenge has already bought a plot, where he has built a house. Apart from sewing, the 24-year-old has technical expertise in wiring.

Trade and Industry Minister, Francois Kanimba said focusing on the youth was important in the government’s effort to grow the economy.

Mr Kanimba added that the ministry is so far overseeing different programmes that are hosting more youth; those are the famous Hanga Umurimo programme and the Handcraft Excellence Award Programme (HEAP).

The Hanga Umurimo programme, with a special focus on innovation, is today registering over 16,000 business ideas, 50 from each district for development of business plans.

“We are willing to finance the best selected 10 per district through financial institutions to access loans and start their business,” said the minister.

Mr Kanimba added that the HEAP programme has not only increased the number but also the quality of products available on the market.

“HEAP not only recognises innovation and talent in Rwanda’s crafts sector but also stimulates competition for quality products capable of accessing regional and international markets,” said the minister.

Handicrafts are currently sold in over 580 co-operatives across the country, with another 15 cross border co-operatives established, including seven trade co-operatives at all borders.

READ: Govt to raise $7m from trade in crafts
The growing culture of entrepreneurship in Rwanda is said to empower a considerably large informal sector, which is over 85 per cent of the entire private sector.

Government commitment in empowering its people financially and economically has immensely improved livelihoods in Rwanda.