afrol News, 3 November - Small-scale entrepreneurs in poor rural areas of Rwanda are to be given a boost by a US$ 17.6 million project that is to focus on development of microenterprises. Small businesses are hoped to diversify Rwanda's rural economy.

The Rwandan government project, which was financed today, is to support rural poor people who are already involved in micro-enterprises, by offering training and other support on request.

It is also to strengthen the capacity of grassroots professional organisations and rural finance services to respond to the needs of local micro-entrepreneurs. Particular attention was to be given to very vulnerable groups including women, landless people, unemployed youth, orphan-headed households and families affected by HIV-AIDS.

In the long term, the project's aim is that "rural poor people will be able to rely more heavily on microenterprises to supplement their incomes, particularly in areas where high population density puts pressure on the land," according to the project's description.

The project is thus also to contribute to diversification of Rwanda's economy by promoting development of the secondary and service sectors. Growing demands on these sectors have already led to new opportunities for self-employment, especially in areas such as small commerce, handicrafts and repair shops.

The project is to start in one province and will then gradually expand to cover the entire country.

The seven-year project will be financed largely by a US$ 14.9 million loan from the International Fund for Agricultural Development (IFAD) to the Rwandan government. IFAD is a UN agency dedicated to eradicating rural poverty.

The loan agreement was signed today at IFAD headquarters in Rome by the Secretary-General of the Ministry of Finance and Economic Planning of Rwanda, Claver Gatete and the IFAD Vice President, Cyril Enweze.

By staff writer

© afrol News

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