Rural youth entrepreneurs need practical pathways to turn their businesses into viable enterprises that can grow, access markets, create jobs and attract finance, Catholic Relief Services (CRS) has said.

The call was made at the Rural Youth Enterprise Forum (RYEF) 2026 on Tuesday, September 15, which brought together government officials, financial institutions, private-sector players, development partners and rural youth entrepreneurs to discuss barriers preventing youth-owned businesses from moving beyond the start-up stage.

Discussions covered access to finance, markets, digital solutions and business growth, among other areas.

The forum was organised by the Ministry of Youth and Arts (MoYA), CRS and Caritas Rwanda under the theme, "Empowering Rural Youth Enterprises to Grow, Thrive and Scale.”

Caroline Agalheir, Deputy Regional Director for Program Quality for CRS’s Central and West Africa Regional Office, said rural youth entrepreneurs need support to build businesses that can generate income, create jobs and participate in wider markets.

"For rural youth entrepreneurs, the challenge goes beyond simply starting a business. It is about growing viable enterprises that can improve household resilience, create jobs, access markets, use digital tools and contribute to Rwanda's inclusive economic transformation,” she said.

She called on financial institutions to develop financing pathways that reflect the realities of young entrepreneurs.

"To financial institutions, we invite you to help build realistic pathways from savings and records to youth-friendly products and growth capital,” Agalheir said.

She also urged private-sector companies to view rural youth entrepreneurs not only as beneficiaries but as potential suppliers, customers, innovators and business partners.

Building businesses that can access finance

Minister of Youth and Arts Abdallah Utumatwishima said access to finance remains one of the major challenges facing young entrepreneurs, but noted that some barriers can be addressed by the entrepreneurs themselves.

"The youth in rural areas have saving schemes but that is not enough. The youth should save in SACCOs or save in other financial institutions. That is how banks will know you and will have information about you,” Utumatwishima said.

He said some entrepreneurs seek financing for projects worth Rwf100 million despite having little experience managing smaller amounts, even less than Rwf1 million, highlighting the need for young businesses to demonstrate their ability to manage smaller financing before seeking larger loans.

The minister also said some young people linked to banks through government financing initiatives fail to access loans because they do not meet lenders’ requirements.

He urged them to maintain books of accounts and build a transaction history that can help financial institutions understand the performance of their businesses.

Also, the minister encouraged young people to build relationships with financial institutions and said this could open the way to funding through the Aguka Youth Fund intended to help young entrepreneurs access affordable finance.

"If you are to take any decision from here, start doing business and working with banks. Start with SACCOs around you and you will be able to access funds from Aguka Youth Fund as we will be working with you,” he said.

Young entrepreneurs, he pointed out, need to strengthen their financial preparedness as the government and its partners work to expand access to finance.

"Access to finance is still an issue but we are trying to address it together with partners, but we want young people themselves to be ready by saving, by financial literacy and by financial discipline,” he said.

Collateral remains a hurdle

For some rural entrepreneurs, however, even businesses with growth potential can struggle to meet the conditions attached to formal finance.

Solange Bayizere, a handcraft and fashion entrepreneur from Nyabihu District, said she had been unable to secure a loan because she did not have sufficient collateral.

"Rural youth face issues of access to finance. Sometimes we don't fulfil the requirements. I applied for a loan but I did not have enough collateral,” she said.

She said entrepreneurship training had helped her change her approach to business and develop a culture of learning.

"In the training we acquired, we were trained on mindset change and entrepreneurship and I developed the culture of reading,” she said.

CRS in partnerships with Caritas has established a model to support rural youth access finance by savings and accessing loans progressively as their businesses grow. Starting from accessing small loans in youth’s savings and lending groups, to working with financial institutions, rural entrepreneurs access funds to invest further in their businesses.

From start-up to growth

Young entrepreneurs also exhibited agricultural and agro-processed goods, handicrafts, locally made shoes, weaving and tailoring products.

CRS said it has worked in Rwanda for more than 16 years, engaging more than 102,000 young people, with over 48,000 supported through enterprise development, participation and access to economic opportunities.

CRS’ Country Manager Kumud Chandra said that the foundation has been set, and there is a need for building a strong partnership to allow further growth and robust support that respond to current challenges rural entrepreneurs face.

"Our journey has evolved from readiness programmes to strengthening systems around finance and digital solutions. The foundations have been set, but growth is the next frontier, requiring tailored support that responds to the needs, size and ambitions of rural enterprises,” she said.

The organisation said its work has involved partnerships with Caritas Rwanda, government institutions, financial institutions, private-sector actors and local partners.

The focus on helping young businesses formalise, access finance and scale come as Rwanda seeks to create 1.25 million productive jobs by 2029 under the Second National Strategy for Transformation (NST2), equivalent to 250,000 jobs annually over the five-year programme that began in 2024/25.