The government, with support from its partners, is rolling out a flagship initiative dubbed “Positioning Rwanda as a Regional Digital Entrepreneurship Hub.” The project, with more than Rwf700 million earmarked in the 2025/26 fiscal year, seeks to empower local startups and entrepreneurship support organizations (ESOs) with strategic guidance and funding. Esther Kunda, the Director General of Innovation and Emerging Technologies at the Ministry of ICT and Innovation, told The New Times that the digital entrepreneurship initiative was allocated approximately €6.4 million (over Rwf10 billion). It is a subcomponent of the broader $200 million Rwanda Digital Acceleration Project, co-financed by the World Bank and the Asian Infrastructure Investment Bank (AIIB). ALSO READ: Inside Rwanda’s plan to fast-track digital transformation by 2026 The project began in December 2021 with feasibility studies, completed in 2023. The first ESO grants were disbursed in 2024. It is scheduled to end in December 2026, Kunda said. She stated that achievements so far include the development of the Smart Rwanda Master Plan II and Rwanda Innovation Strategy, technical assistance for early-stage financing mechanisms, and support programme design for Rwandan ESOs. On the rationale for the project, she said it supports Rwanda’s Vision 2050 goals of becoming a high-income economy by fostering innovation-led growth. “Rwanda aspires to become a high-income country by 2050, as articulated in Vision 2050, the current national development strategy. Such rapid structural transformation and economic growth will require innovation as a key driver and enabler of that ambitious growth,” Kunda said. ALSO READ: Rwanda to develop 50 AI tools across various sectors: official What the project covers – interventions Under the Regional Digital Entrepreneurship Hub subcomponent, the project funds enabling strategies, policies, and institutions to support digital innovation, performance-based grants for ESOs, encouraging quality-driven, sustainable models for startup support, and early-stage finance mechanisms for startups, including investment events, training, and direct funding for tech innovators. Funding and eligibility criteria This fiscal year, Rwf700 million has been allocated to support ESOs. So far, about Rwf1.84 billion in grants has been approved for ESO financing, and Rwf935.7 million for early-stage startup funding, Kunda indicated. She said that grants are performance-based: recipients are given initial funding and must demonstrate results before accessing further support. ESOs applying are eligible under three tracks, namely: · ESO capability enhancement grant aiming to enhance capabilities of Rwandan ESOs supporting high-growth startups to address critical gaps in their existing service offerings. · ESO expansion incentive grant, designed to empower the strategic growth of Rwandan ESOs, with established foundation and demonstrated significant traction, by providing incentives for expansion and internationalisation; · Ecosystem collaboration grant, focused on promoting collaboration between ESOs at a local, national or regional level, fostering an interconnected entrepreneurial ecosystem for enhanced services for high-growth startups. This funding will specifically be allocated for initiatives that contribute to the overall growth and development of the entire entrepreneurial ecosystem. Startups can apply for early-stage funding through Hanga Venture Ignite, which targets ventures at ideation or Minimum Viable Product (MVP) stage with high growth potential. Funding tiers are tier 1: eligible for up to $50,000 (over Rwf70 million) in funding, and tier 2: up to $100,000 (over Rwf140 million). Both applications are open ended and interested organisations can submit them anytime, according to the Ministry of ICT and Innovation. Tier 1 is designed to support startups at the ideation stage, where the primary focus is on developing and validating initial ideas and concepts. The grants aim to help startups overcome initial capital constraints, enabling them to progress from a concept to a tangible business proposition. Tier 2 targets startups that have developed a Minimum Viable Product (MVP) and are seeking to refine, scale, and enter the market. The grants aim to support these startups in overcoming challenges associated with early market entry and expansion, providing the necessary resources to achieve significant growth. Cedrick Mupenzi, Chief Executive Officer of Sinc Today, a tech startup meant to revolutionise Africa's events industry management with an all-in-one platform that simplifies event discovery, networking, ticket purchasing, and offers data insights to organisers, told The New Times that the initiative is “a timely and transformative project.” “It gives startups in the ICT/tech space the financial support and strategic guidance they need to turn ideas into scalable businesses,” he said. For Rwanda’s tech industry, he pointed out, this means faster growth, stronger innovation pipelines, and increased competitiveness on a regional and global scale. “By reducing barriers to early-stage funding, it enables more entrepreneurs to move beyond ideation into building real products and solutions, ultimately expanding Rwanda’s reputation as a vibrant hub for digital entrepreneurship,” Mupenzi observed. He indicated that the support Sinc Today received, as one of the startups benefiting through Hanga Venture Ignite, will fuel key product enhancements and scaling efforts for the events and revenue management platform. “This support will allow us to accelerate technical development, improve user experience, and strengthen our operational capacity,” he said. “Looking ahead, over the next 12–24 months, this funding will directly impact how we scale across Rwanda and prepare for regional expansion into other markets,” he stated. Expected impact The project aims to increase the number and growth of innovation-driven startups in Rwanda, improve the quality and scope of startup support from ESOs, expand access to finance and attract private sector investment, boost participation of women and youth in entrepreneurship, and create more jobs in the digital innovation space. To date, six ESOs have received funding, with a similar number expected in the next fiscal year. Over 50 startups are targeted for support as they scale operations. Kunda stated that the primary ESO beneficiaries are incubators and accelerators based in Rwanda, which are expanding their capacity or launching new innovation programmes under the project.
