Five years ago, fewer women were running businesses in Rwanda than today. Their presence has steadily increased across sectors ranging from agriculture and manufacturing to services and trade. A Gender Thematic Report released this week by the National Institute of Statistics of Rwanda (NISR) shows that the share of enterprises managed by women rose from 32.6 per cent in 2017 to 39.9 per cent in 2023. The growth reflects women's increasing participation in Rwanda's private sector. However, entrepreneurs and business experts say the next challenge is ensuring that more women-owned businesses move beyond small-scale operations into sustainable enterprises that create jobs, access wider markets and contribute more significantly to the economy. For Emma Uwera, founder and managing director of I&J Harvest Limited, a home-grown seed company supplying maize, bean and soybean seeds to farmers across Rwanda, the growth in women-led businesses has brought new opportunities, particularly in agriculture. Uwera said government support programmes have helped reduce some of the barriers farmers face. We buy fertiliser and basic seeds through government subsidies, and inspection for our fields is free. In some other countries, farmers have to pay inspection fees, she said. ALSO READ: Women own 55% of Rwanda’s individual businesses - report According to Uwera, these interventions have lowered production costs and made agricultural activities more accessible. However, she said women entrepreneurs, particularly in agriculture, still face challenges that limit their ability to fully control and expand their businesses. Sometimes husbands refuse to allow their wives to get loans from banks because they do not want to provide collateral, she said. She added that social concerns also limit women's participation in some farming activities. Sometimes they stop women from traveling for work because they fear for their security. Moving from starting businesses to scaling them The rise in women-led businesses has been driven by entrepreneurship training, supportive government policies and initiatives promoting women's participation in the private sector. Diane Mukasahaha, founder and managing director of DIKAM Ltd, said women entrepreneurs are increasingly taking advantage of these opportunities. The growth of women-led businesses in Rwanda has been driven by improved access to entrepreneurship training, supportive government policies, and platforms that promote women in business, Mukasahaha said. She noted that women-owned businesses contribute beyond ownership by creating jobs and supporting emerging enterprises. Many women entrepreneurs are not only building businesses but also creating jobs and mentoring small and emerging enterprises, which strengthens the entire ecosystem, she said. ALSO READ: Govt launches centre to boost financing for women-led businesses Despite the progress, Mukasahaha said many women-led businesses struggle when they attempt to expand. Women entrepreneurs still face limited access to affordable finance for scaling, high production costs, and difficulties in accessing larger and international markets, she said. For women in manufacturing, competition from imported products remains another major challenge. Competing with imported goods remains a key challenge for women-led manufacturing businesses, she said. The challenge of scaling small businesses William Buningwire Muhoozi, spokesperson for the Private Sector Federation (PSF), said the growth in women-led businesses reflects improvements in Rwanda's business environment, including deliberate efforts to promote the inclusion of women, youth and people living with disabilities. Through dedicated chambers, PSF supports businesses owned by these groups by connecting them with resources and business opportunities. However, Buningwire noted that many women-owned enterprises remain small, making it difficult for them to secure financing for expansion. A business owner seeking to establish a factory may require significant capital, but banks often require strong financial records and tangible assets as collateral before approving loans, he said. ALSO READ: Women: A cornerstone in shaping the “Rwanda We Want” He said improving access to finance remains a priority, alongside strengthening business management skills and technology adoption. Through programmes such as the Imanzi Business Institute, PSF provides entrepreneurs with training to improve their capacity to manage and grow their businesses. Buningwire also highlighted the need to connect women entrepreneurs to regional and international markets. Access to regional and global markets also remains a challenge, he said, adding that expanding market opportunities would help SMEs grow. Looking beyond the numbers Business consultant and finance expert Jean Claude Rwubahuka said the increase in women managing enterprises is a positive sign of economic inclusion, but cautioned that the figures tell only part of the story. He noted that the share of women managing businesses increased from about 32 per cent in 2017 to nearly 40 per cent in 2023, with women now managing more than 100,000 enterprises. The numbers show that participation has increased more clearly. That is sustainable economy, Rwubahuka said. However, he cautioned that most of these businesses remain too small to generate significant economic impact. About 94 per cent of managed businesses remain micro businesses, he said. ALSO READ: Supporting young women entrepreneurs builds stronger families, communities, and economies According to Rwubahuka, the focus should now shift to helping businesses grow from micro enterprises into small, medium and eventually large companies. We should not focus on registering the numbers alone, but look at the wider, comprehensive growth for women first, he said. He identified limited access to long-term financing, weak business management capacity and insufficient investment opportunities as key barriers to growth. We do not necessarily need to be advising people to go to banks only. We need an ecosystem where people can pitch businesses for funding, where they can meet venture capitalists and angel investors, he said. Rwubahuka also called for greater support for women entrepreneurs operating in higher-value sectors such as manufacturing, technology, logistics, construction and professional services. ALSO READ: Rwanda could earn $700 million by closing financial gender gap He said success should be measured not only by the number of businesses registered, but also by business survival, productivity, profitability, formal employment and export capacity. You can visit some women-owned businesses, and they will tell you they have more than 10 or 15 employees, but when you ask about formal employment, you find that no one has a contract, he said. For Rwanda's women entrepreneurs, the journey has moved beyond starting businesses. The next challenge is building enterprises that can scale, create quality jobs, compete beyond local markets and remain sustainable over the long term.
