KIGALI – The East African Development Bank and UN Rwanda have signed a Memorandum of Understanding (MoU) to accelerate the growth of small and medium enterprises (SMEs), with a strong focus on youth and women entrepreneurs.
The agreement brings together EADB’s financial strength and the UN’s technical expertise to address long-standing barriers that continue to limit SME growth in Rwanda.
SMEs remain central to Rwanda’s economic transformation, driving job creation and innovation. However, many businesses struggle with access to finance, limited technical capacity, and weak market connections.
“By combining the UN’s strength in technical expertise, capacity building, and social development with EADB’s role as a development finance institution, we are creating a more holistic support system for SMEs,” said Benard Mono, the EADB Ag. Director General.
He noted that the partnership will expand access to tailored financing, strengthen entrepreneurial skills, and support innovation, particularly among youth and women-led enterprises.
Through the collaboration, the two institutions will develop financial instruments suited to SME needs, including concessional loans, blended finance, guarantees, and equity products. These will be backed by technical assistance and knowledge-sharing initiatives to improve business sustainability.
Focus on youth and women
Dr. Fatmata Lovetta Sesay, the UN Rwanda Resident Coordinator said the partnership represents a broader commitment to inclusive development. “This is more a shared commitment to unlocking the potential of Rwanda’s small and medium-sized enterprises, youth, and women entrepreneurs,” she said.
Sesay emphasized that the initiative will address systemic barriers that disproportionately affect young entrepreneurs and women, particularly in accessing finance, skills, and markets.
“This partnership is expected to unlock critical financing and technical support… to address barriers in access to finance, skills, and market linkages,” she added, noting that the collaboration will contribute to job creation and expanded economic opportunities.
Structured for long-term impact
To ensure results, the partnership will operate under a joint implementation framework. A Steering Committee will provide strategic direction, while a technical working group will oversee execution and maintain momentum.
The UN will leverage its convening power to align government, private sector, and innovation ecosystem players, while EADB will lead in structuring and deploying financial solutions.
The initiative builds on existing collaboration and is expected to support SMEs across sectors such as agriculture, commerce, transport, and manufacturing.
Aligned with Rwanda’s national development priorities, the partnership positions SMEs at the center of a broader strategy for inclusive growth and resilience. When SMEs grow, economies grow, and when economies grow, lives are transformed.
