For any economy that wants to achieve sustainable growth, policy formulation must put support to Small-and-Medium Enterprises (SMEs) as a central component of any sector strategy.

That is the reason why the Ministry of Trade and Industry has, among others, given priority to the SME industry because it is key for the continued growth of the private sector. The ministry has, for instance, created different measures to support SMEs and take them to the next levl so that they are able to create more jobs for the youth.

Francois Kanimba, the Minister for Trade and Industry, says that the government supports SMEs as one of the direct channels through which the unemployment problem can be tackled effectively. “Figures indicate that 98 per cent of those in the private sector are SMEs. It is therefore important that government comes up with mechanisms to solve challenges the sector faces if they are to operate profitably and contribute towards the country’s development agenda,” said Kanimba during a recent exhibition by SMEs in Kigali.

“One of the major challenges we are addressing is not, only to train the young generation about starting their own jobs, but also giving them the required skills and knowledge to be able to operate their business ventures profitably and sustainably,” said the minister.

In December last year, trade and industry ministry set up an SMEs forum secretariat that brings together different key players from various sectors as one of the ways aimed at solving the challenges that SMEs face.

The SMEs Forum secretariat has come up with various means through which issues facing SMEs will be examined and resolved, according to Kanimba.

Some of the challenges the SME industry faces include lack of professionalism, innovation and access to current technology, according to the secretariat.

The government has already assured sector players that the Workforce Development Authority (WDA) and the trade and industry ministry, in collaboration with the Ministry of Education, will help in addressing these problems. These bodies will help build the capacities of different sector players to ensure they operate profitably.

WDA and the National Industrial Research and Development Agency (NIRDA) have also been fronted to address the issue of limited access to technical and business skills.

This will be handled through the Community Processing Centres (CPCs) supervised by by NIRDA. Lack of marketing strategy is another challenge that hinders growth and development of SMEs, according to the forum.

However, Business Professionals Network (BPN), a Swiss non-profit institution, is collaborating with trade and industry ministry, the Rwanda Development Board and the Private Sector Federation and works with external consultants, especially in the area of SMEs, to find remedy to the issue.

Since it started operating in Rwanda in 2011, BPN has trained 170 people and given them loans. Its approach has created a paradigm shift in the thinking of SMEs since they promote prudent business practices. This way, it is expected that more jobs will be created to ease the unemployment problem facing graduates and other youth.

In response to a growing need for risk capital and quality management advice in Rwanda, Business Partners International and other influential global SME investors.

According to Eric Rutabana, the BPI country manager, the institution has approved funding for 30 businesses. The firm focuses on financing sectors that have an impact on the economy.

“We look at projects that generate employment or those that are export-oriented so that the country can cut on its import bill. We also fund enterprises that promote sustainable development through environmentally-friendly practices and production means,” Rutabana explained recently.