Rwanda’s Aguka Youth Fund has reached Frw1.5 billion, strengthening efforts to expand access to affordable financing for youth-led businesses.
The milestone was announced by Minister of Youth and Arts, Dr. Jean Népo Abdallah Utumatwishima, in an interview with RBA on Tuesday, May 5, 2026.
Designed as a guarantee facility, the fund enables young entrepreneurs to access loans from SACCOs and partner banks by covering part of the collateral requirement—one of the key barriers limiting youth participation in business.
The Aguka Youth Fund is a government initiative implemented by the Ministry of Youth and Arts in partnership with the Development Bank of Rwanda (BRD), UNDP, the European Union, and the Tony Elumelu Foundation. It provides not only financing but also mentorship and entrepreneurship training.
The programme targets high-impact sectors including technology, agriculture, and renewable energy, while also offering seed capital to support early-stage ventures.
Loans under the scheme are issued at an interest rate of 9%, with simplified conditions, including a reduced collateral requirement of just 10%, aimed at making financing more accessible to young people.
The Ministry has encouraged youth with viable business ideas to tap into the fund, which offers loans of up to Frw10 million, with a grace period of three months before repayment begins.
