The Ministry of Youth and Arts Development (MoYA), in partnership with the Development Bank of Rwanda (BRD), has relaunched the Aguka Youth Fund, a targeted financing scheme designed to improve access to affordable credit for young entrepreneurs and artists seeking to grow their businesses and creative ventures.
The initiative is aimed at addressing persistent barriers faced by youth-led enterprises, particularly limited access to credit and stringent collateral requirements that often hinder project development and scale-up.
Under the revised financing terms, applicants are required to provide collateral not exceeding 10% of the requested loan amount, significantly lowering entry barriers compared to conventional lending systems. The facility also offers a competitive interest rate of 9%, below prevailing market rates.
In addition, borrowers who successfully repay their loans will benefit from a performance incentive equivalent to 10% of the borrowed amount, reinforcing a culture of responsible borrowing and repayment discipline.
Repayment is structured to begin after a three-month grace period, with flexible repayment periods ranging from six months to five years, depending on the nature and size of the project.
Eligibility is limited to Rwandan youth aged 18 to 30, while artists may apply regardless of age. Applicants are required to have an existing, operational and registered business that is tax-compliant, including possession of a Tax Identification Number (TIN) and a valid trading license.
Beneficiaries must also hold an active business bank account that has been operational for at least one year. Applicants are required to submit a detailed business proposal outlining project performance, projected revenues, and long-term sustainability. The maximum loan ceiling is set at 10 million Rwandan francs.
As part of the application requirements, candidates must also provide a repayment plan and are encouraged to demonstrate prior participation in business training programs, which is considered an added advantage during evaluation.
Applications are submitted through MoYA’s official website and digital platforms. The application window closes on 30 May 2026, after which submissions will undergo preliminary screening before being forwarded to BRD for in-depth appraisal and final approval.
Officials say the fund is part of broader government efforts to strengthen youth entrepreneurship ecosystems by easing access to finance, supporting innovation, and promoting job creation through viable youth- and artist-led enterprises.
