The Rwanda Social Security Board (RSSB) has launched a landmark $100 million Rwanda SME Growth Fund, stepping in as a cornerstone investor with a $30 million commitment. The facility is aimed at expanding long-term financing for small and medium-sized enterprises to drive business growth, job creation, and economic transformation in Rwanda.

The fund, unveiled on April 27 in Kigali, seeks a final close of $100 million by attracting more investors and is designed to unlock long-term, flexible local-currency financing for SMEs, supporting growth, employment, and innovation.

Aligned with the second phase of the National Strategy for Transformation (NST2), the initiative is part of broader efforts to strengthen Rwanda’s private sector-led economy.

Strategic national alignment

RSSB said the fund aligns with its broader strategy to support Rwanda’s economic transformation, including pension reforms and capital mobilisation, and fits within both the Vision 2050 and NST2 frameworks, which prioritise private sector-led growth.

RSSB Chief Executive Officer Regis Rugemanshuro said:

"Rwanda has set ambitious targets to become a High-Income Nation by 2050. RSSB is fully committed to supporting the realisation of this vision by aligning our capital allocation strategies to the key pillars and priority sectors in the Vision 2050 blueprint.

"With the National Strategy for Transformation (NST2), a five-year government program with a central focus on private sector-led growth currently under implementation, the Rwanda SME Growth Fund is a timely initiative which will support the Economic Transformation Pillar.”

He added that the initiative marks several regional firsts for a public pension fund, including the first SME-focused investment vehicle, the first permanent capital structure anchored by a pension fund, and the first dedicated Technical Assistance facility.

Bridging the SME financing gap

Managed by Enko Capital, an Africa-focused alternative asset manager with $1.7 billion in assets under management, the fund targets SMEs that often struggle to access growth capital.

RSSB and Enko Capital announced the initial closing with RSSB committing $30 million (Rwandan franc equivalent).

The fund will provide long-term growth capital in local currency, addressing a persistent financing gap in Rwanda’s SME ecosystem.

SMEs account for over 90 per cent of businesses, contribute about 55 per cent of GDP, and provide more than 60 per cent of employment, according to the fund initiators.

However, financing constraints remain significant, with 68 per cent of SME owners seeking loans, 46 per cent relying on informal lenders, 22 per cent on formal institutions, and only 10 per cent accessing bank financing. Collateral requirements can reach up to five times the loan value.

Beyond financing: technical assistance support

RSSB noted that SMEs also face structural challenges that limit their ability to grow and effectively deploy capital.

To address this, the fund includes a Technical Assistance (TA) facility seeded with $3 million by RSSB. The facility will operate as a separate but aligned structure, supporting SMEs before and after investment through governance training, including hiring qualified managers to improve performance, as well as support in product development and diversification.

RSSB said this approach is intended to strengthen the wider SME ecosystem, improve competitiveness, and reduce the burden of high executive hiring costs that many SMEs cannot afford.

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"Missing middle” financing challenge

Enko Capital Co-Founder and Managing Partner Cyrille Nkontchou said the fund targets the "missing middle” in SME financing.

"The Rwanda SME Growth Fund represents a shift toward African capital driving African growth, positioning SMEs at the centre of economic transformation,” he said.

"By providing patient, local-currency capital, the Fund addresses the critical financing gap between microfinance and traditional banking—unlocking growth for ambitious businesses that lack access to the right kind of funding.”

He added that the fund combines investment with technical support, enabling SMEs to scale, create jobs, and expand into new markets.

Insights from Enko Capital

Nkontchou said SMEs remain central to job creation but are constrained by financing gaps between microfinance and commercial banking.

"There is a missing middle of companies that need to access capital to grow their business. And I think that's really where the SME fund focuses.”

He noted that Enko Capital has implemented similar structures across Africa and sees rising demand for such investment vehicles.

"So, really what this fund does is that it's really at the edge of what the traditional banks cannot do. So, it's basically to complement, we call it in our industry, the missing middle.”

Strong institutional backing

FSD Africa supported the structuring of the fund over a two-year period.

Director of Catalytic Transactions David Ganesha Tetteh said:

"The establishment of the Rwanda SME Growth Fund marks a major milestone in unlocking long-term, local currency financing for small and medium-sized enterprises (SMEs) in Rwanda. Despite SMEs driving over 55 per cent of GDP and the majority of employment, they have historically lacked access to appropriate growth capital.”

He noted that Africa holds over $1 trillion in institutional capital, much of which is not channelled into productive sectors due to a lack of suitable investment vehicles.

"In Rwanda, this achievement carries particular weight. SMEs account for over 97 per cent of all businesses, contribute more than 55 per cent of GDP, and generate over 40 per cent of employment, yet for too long they have lacked access to appropriately structured, long-term growth capital.”

He added that the fund provides financing, technical assistance, and a pathway to scale.

Fund structure and RSSB vision

The fund will provide equity financing, meaning SMEs will receive capital in exchange for shares. Once they reach sustainable growth, shares may be bought back by the SMEs or sold to other investors, creating a structured exit pathway.

Rugemanshuro said ticket sizes will range from $500,000 (approx. Rwf730 million) to $5 million (approx. Rwf7.3 billion), targeting SMEs ready for growth and impact.

He added that the fund responds to three key challenges: access to capital, capacity building, and job creation.

"We want to create sustainable, decent, great jobs in Rwanda,” he said, adding that RSSB also aims to build local and national champions and generate long-term wealth.

About the partners

Enko Capital is an Africa-focused asset manager investing in debt, private debt, equity, and private equity across the continent, with headquarters in London.

RSSB manages Rwanda’s social security system with assets of about Rwf3.5 trillion ($2.4 billion), covering pension, medical, and other schemes.

FSD Africa is a UK-supported development agency working across more than 30 African countries to mobilise finance for inclusive and sustainable growth. Under its current strategy (2025-2030) the organisation seeks to mobilise £10billion, improve access to basic financial services for 80 million and help create 200,000 jobs across Africa.