Rwanda Polytechnic, the country’s technical and vocational education and training (TVET) University, plans to progressively generate Rwf2.3 billion as revenue in the next five years in a self-financing drive targeting to generate at least Rwf2 billion, annually, later.

Rwanda Polytechnic was established by the government in 2017 to spur TVET skills development across the country. The expected revenues will be generated under the newly created university’s company, RP Corporate Ltd.

The development comes after dissolving all seven small companies that were being run by Integrated Polytechnics Regional Centres (IPRCs) that make Rwanda Polytechnic. They include IPRC Gishari, IPRC Karongi, IPRC Kigali, IPRC Kitabi, IPRC Huye, IPRC Musanze, IPRC Ngoma and IPRC Tumba.

The small companies by these colleges were dissolved after failing to generate income, as the Auditor General shows in the report ending June, 2021. According to Auditor General, Alexis Kamuhire, there were issues in managing resources as indicated by loopholes in the companies’ books of accounts.

"The companies were using resources of the university yet they were supposed to generate money which they can use,” he said.

According to Aimable Nsabimana, the Deputy Vice Chancellor in charge of Administration and Finance, after getting recommendations from the Auditor General and the Ministry of Finance, the companies were dissolved in June to create a company.

"We have to make sure the newly created company improves the performance and avoids mistakes that were found in the dissolved companies. The mistakes were found in workers recruitment, public procurement, and paying taxes, among others,” he said.

Liliane Uwabyaye, the Managing Director of the newly created "RP Corporate Ltd,” told Doing Business that the company seeks to generate at least Rwf260 million by the end of this fiscal year.

She said that Rwanda Polytechnic could generate Rwf2.3 billion within five years. The target, she noted, is to generate Rwf2 billion, annually, as the company grows.

"The activities to generate income are run by students and staff because they make 90 percent of the needed workforce. We have three objectives; income generation, enhancing practical skills for students in all eight colleges’ production centres and providing services to surrounding communities,” she said.

The revenues, she said, will be generated from all trades taught in RP colleges.

"The revenue will be generated through production, consultancy and project proposals for funding. In carpentry we make furniture, electrical installation, mechanical production such as producing improved cook stoves, making suspended bridges, scientific lab testing and mechanical garages,” she said.

The sources of revenues, she added, also include the hospitality sector.

"We have restaurants in four colleges and we employ students who are studying culinary arts. We also have accommodations. The students who are employed in all the production centres also get remunerations,” she said.

The trades which can generate income in the eight colleges include agricultural engineering, civil engineering, mechanical engineering, electrical and electronics engineering, hospitality management, creative arts, mining engineering, information and communication technology, tourism, forestry and nature conservation, ICT, crop production, veterinary technology, information technology (IT), and renewable energy, among others.

While the dissolved companies that were supposed to generate income from such trades had no management framework and strategic business plans, she noted, the new company has set up a computerized accounting system and strategic plan to warrant innovative business to produce quality products and services.

"While the managers of the companies were teachers and college staff who were overwhelmed by double work, the new company recruited new and dedicated permanent managers,” she added.