The role of financial institutions in empowering the youth is critical if the challenge of unemployment is to be addressed. Access to affordable finance for youth-led enterprises remains a tall order for most young entrepreneurs.

In most cases, financial institutions are reluctant to lend to start-ups which are dominated by the youth. While it is understandable that banks have to take measures to safeguard the money they lend, it is also crucial to give special consideration to the youth who in many cases have good business ideas, but without the capital they need to start out.

However, some financial institutions are heeding the call to reach out to the youth. Bank of Kigali is moving to do just that through its Urumuri initiative to help the youth access interest free credit.

The initiative, which will be held annually, seeks to identify youth-led enterprises with great potential to become industry leaders. These would be equipped with business management skills and a revolving fund to avail interest-free loans managed on the bank’s behalf by Inkomoko, a business development firm.  

 As a leading corporate entity, Bank of Kigali is setting the pace, which other industry players should emulate.

Under Urumuri initiative, young entrepreneurs will be able to competitively access an interest-free fund of Rwf60 million which would be scaled up gradually.

When the initiative was announced, over 350 young entrepreneurs submitted their projects, but only 50 entrepreneurs, who were deemed ambitious and innovative with strong potential to grow into major players in Rwanda’s economy, were selected. From the 50, eight winners will be picked. The initiative will, in many ways, spur youth entrepreneurship.

We need more of such initiatives for the youth to unleash their potential and subsequently contribute to job-creation and thereby national development.