THE PROJECT

Objectives and Scope

To improve the living standards of the most disadvantaged rural groups, the project will focus on promoting rural microenterprises, (particularly for vulnerable groups); developing professional organizations capable of providing services to SMEs; and supporting the development of a national policy and dialogue platform for SMEs.

Specifically, the project objectives are to: (i) promote the development of viable SMEs and their professional organizations so that they can respond to the needs of the target group; (ii) improve the performance and productivity of SMEs through access to sustainable non-financial services; (iii) promote the use of appropriate technology, the observance of acceptable quality standards and better access to markets; (iv) enhance access to financial services adapted to the requirements of SMEs; and (v) improve the institutional and legal framework of SMEs.

The main purpose of the project is to assist SMEs in becoming important sources of supplementary income for rural groups, particularly in areas with high population density and land pressure, and to help diversify Rwanda’s economy by promoting the secondary and service sectors. Due to growing demands on both these sectors, opportunities for self-employment are increasing significantly, especially in areas such as petty commerce, repair shops and handicrafts.

For programme purposes, SMEs are divided into three groups: subsistence, emerging and expanding SMEs. Project support activities, including credit, will be fine-tuned according to the specific needs of each operational category. In the case of new entrants and subsistence SMEs, an apprenticeship programme will facilitate skill transfer from experienced established entrepreneurs to new entrepreneurs.

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