$30M AfDB loan for Rwanda Innovation Fund will fast track the country’s economy

THE INSPIRER.

The African Development Bank (AfDB) has committed a $30 million loan for the establishment of Rwanda Innovation Fund which will be an important aspect in developing Rwanda’s financial and technology sectors according to Minister Claver Gatete.

The signing ceremony of this loan agreement was signed on Thursday March 22, 2018 at the Ministry Headquarters by the Minister of Finance and Economic Planning (MINECOFIN) Claver Gatete and Director of Private Sector at (AfDB) Abdu Mukhtar.

The Innovation Fund is one of the outcomes of international scientific conference that was concluded in Kigali last week and will be catering for scientific innovation development in fast tracking the country’s development.

“The project is a strategic National importance to Rwanda as the country that seeks to open its fast growing innovation economy and promote private sector” Gatete said.

The fund will help the country to achieve innovative projects in the area of Science, Technology and Innovation that are key tools towards the success of the MDGs.

AfDB currently supports Rwanda in other areas such as Private Sector development, energy and agriculture, Transport as well as water and sanitation.

The AfDB finance will also benefit small and Medium-size enterprises and will train the enterprises attached to technology in business planning and management.

Abdu Mukhtar, the Director at the Bank’s Private sector said that this loan will help in developing private sector and attract investors .

“The project will enable AfDB to play a significant role in helping regional Member countries develop sustainable innovation Ecosystems and stimulate entrepreneurship growth”. Mukhtar said, adding that it will address the funding gaps and reduce poverty by promoting social-economic growth.

“The project is expected to support over 150 companies at various stages, investing in about 20 early growth stage opportunities and creating more than 2,000 direct jobs and 6,000 indirect jobs in a period of 10 years,” AfDB states.

It will also provide capacity-building to 7-10 incubators and accelerators, facilitate 3-5 additional angel networks, and training to about 30,000 entrepreneurs across the region according to AfDB.