BDF in new push to reduce unemployment among youth

Business Development Fund (BDF) has been challenged to play a critical role in helping the country create more jobs to reduce youth unemployment and underemployment in the country. Minister for Trade and Industry Francois Kanimba said the government is counting on the fund as a key stakeholder that will help Rwanda achieve its national employment programme targets by facilitating small-and-medium enterprises (SMEs) development. Kanimba was speaking during a hand over of 35 motorcycles to BDF on Tuesday at the ministry head offices in Kigali. He said bikes will enable the fund to properly monitor the government’s ‘Hanga Umurimo’ programme that supports young entrepreneurs. The fund provides loan guarantees to enterprising youth with bankable projects to start businesses and create jobs for themselves and other young people. BDF recently decentralised its structures, and created centres across Rwanda’s 30 districts after it took over the ‘Kora Wigire’ centres (formerly called business development centres) to create a national presence. Commenting on the support, Innocent Bulindi, the BDF chief executive officer, said the bikes will enable the fund’s district co-ordinators to supervise business projects at local level. “This means we can reach all clients and offer them timely business advisory services and more efficiently,” Bulindi told The New Times. The fund is expected to provide Rwf5.6 billion in credit guarantees to 1,000 projects to enable budding entrepreneurs access bank loans. The organisation gives credit guarantees of up to 75 per cent, which Bulindi said have made it possible for thousands of youth to access bank loans. Many young people often fail to qualify for loans because they lack collateral demanded by banks, a challenge that is being solved by BDF guarantees for qualifying projects. Meanwhile, Bulindi has said the fund will provide Rwf1.3 billion refinance to 80 SACCOs, enabling them to fund grassroots borrowers. The money will be used to provide loans to about 7,000 small-and-medium enterprises, as well as grants to 3,900 entrepreneurs with good business ideas that have the potential to create more jobs. Bulindi said, through these combined interventions, BDF hopes to help create 23,700 jobs by the end of the year.

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BDF in new push to reduce unemployment among youth