Rwanda’s government has announced that the Aguka Youth Fund has reached Rwf 1.5 billion, marking a significant step in efforts to expand financial access for young entrepreneurs across the country.

The fund, launched by the Ministry of Youth and Arts in partnership with the Development Bank of Rwanda (BRD) and other stakeholders, is designed to address one of the biggest challenges facing youth—limited access to capital.

According to Minister of Youth and Arts, Dr. Utumatwishima Jean Népo Abdallah, the fund will primarily act as a guarantee mechanism, enabling young people to secure loans from SACCOs and selected financial institutions.

The initiative allows eligible youth to access loans of up to Rwf 10 million, with the government covering a large portion of the risk through guarantees.

“Under the Aguka Youth Fund, any young person with a clear and viable business can apply for up to Rwf 10 million,” the minister said, explaining that the government and partners will guarantee most of the loan to ease access to financing.

Officials say the fund is part of a broader national strategy to promote entrepreneurship, create jobs, and support youth-led businesses.

Since its inception, the wider Aguka initiative has already contributed to job creation and income generation through support programs targeting young innovators.

The Aguka Youth Fund complements existing entrepreneurship programs by shifting from grant-based support to sustainable financing solutions, ensuring that more young Rwandans can start and expand businesses with fewer barriers.

Authorities are urging young people to take advantage of the opportunity, emphasizing that access to finance is now more achievable than ever for those with viable business ideas.

By Andrew Shyaka