KIGALI, – One hundred young entrepreneurs from the third cohort of the AGUKA Youth entrepreneurship Programme received seed capital of $3,000 each at a ceremony held at the Kimisagara Youth Centre in Kigali in June 2025, marking a significant milestone in Rwanda's commitment to youth entrepreneurship. The event was attended by Dr. Utumatwishima Jean Nepo Abdallah, Minister of Youth and Arts; UNDP Resident Representative Fatmata Lovetta Sesay; Michela Tomasella, Head of Cooperation at the EU Delegation to Rwanda, as well as representatives from the Tony Elumelu Foundation, and the Business Professional Network (BPN) Rwanda. Their presence underscored the strong multi-stakeholder commitment to supporting Rwanda's young entrepreneurs and the collaborative spirit driving the programmes's success.

Among the recipients, Lucien Niyigena from Rwamagana District, who lives with a physical impairment, exemplified the programme's commitment to inclusive entrepreneurship. "I am a youth with a disability, but I wasn't selected because of that. I competed fair and square and emerged among the winners. I promise to use this money to benefit people with disabilities through my project," he shared.  

From grant to investment, the AGUKA seed capital provided to youth in the form of grants has steadily grown in impact and momentum over the past three years. It is increasingly recognized as a powerful engine for development and a transformational tool for Rwanda’s broader economic growth. Building on this success, the Rwandan government, through the Ministry of Youth and Arts, will introduce an AGUKA Fund that will offer loans to youth entrepreneurs, further expanding access to finance and supporting the transition from grant-based to investment-driven entrepreneurship.

Minister Abdallah announced that stakeholders have pooled approximately one billion Rwandan francs to launch the AGUKA Fund, which will become operational by July 2025. The fund represents a groundbreaking approach to youth financing in Rwanda, offering loans without traditional collateral requirements. "We want to provide capital to youth for their business ventures and have them repay it. We will not require collateral – the collateral will be you," Dr. Abdallah explained. "If repayment fails, you will be entered into the CRB system, affecting access to other services via Irembo." 

The minister emphasized that interest rates will be significantly lower than commercial banks, potentially around 8%. "If you receive 10 million Rwandan francs, do not worry – start your business, repay your loan, and enable another youth investor to benefit," he told the enthusiastic audience. He described the AGUKA Fund as "yet another opportunity for Rwanda's youth to realize their entrepreneurial dreams."

UNDP Rwanda Resident Representative Fatmata Lovetta Sesay congratulated Rwanda's young entrepreneurs and underscored the transformative power of youth-led innovation. "Young entrepreneurs are not only building businesses, but they are also creating jobs, solving community challenges, and opening new possibilities for Rwanda's future," she told the gathering. "You are the pioneers of a new economy, one that is youth-led, inclusive, and future-ready." Ms Sesay also commended the Government of Rwanda for its continued leadership in placing young people at the center of Rwanda's transformation agenda and reaffirmed UNDP's commitment to supporting the thriving entrepreneurial ecosystem through the AGUKA programme.

The European Union has contributed approximately 12 billion Rwandan francs – about 80% of the total project budget. Head of Cooperation of the EU Delegation to Rwanda Michela Tomasella highlighted the programme's impressive growth trajectory. "In just a few years, AGUKA has grown from 400 participants in the first round to 1,500 today. Already, 200 young entrepreneurs have received seed funding, and today's group of 100 adds to that total," Tomasella noted. "But what matters most is impact: turning ideas into business, creating jobs, and showing that youth in Rwanda can lead the way."

Since its launch in 2022, the AGUKA programme has demonstrated remarkable success in nurturing entrepreneurial talent. Nearly 1,500 youth in Rwanda have benefited from the ideation phase alone, receiving essential tools, knowledge, and networks needed to thrive in business. Ibukun Odurinde, representative from the Tony Elumelu Foundation, emphasized their role in scaling the programme; "We do this because we believe that the seed of an idea in the hands of young Africans is a powerful driver of social and economic transformation." 

The current 100 cohort of recipients were chosen through a competitive selection process that started with regional pitching events across the four provinces in Rwanda: Musanze (Northern Province), Kayonza (Eastern Province), Karongi (Western Province), and Kigali city. During these events, out of 1,514 of total applicants, 200 finalists presented innovative business ideas focusing on agriculture, technology, innovation, and service delivery. 

Their business ideas were selected based on viability and their potential impact on the local community, particularly in terms of job creation and poverty reduction. A day before the pitching session, all 200 participants received a one-day coaching session delivered by the Tony Elumelu Foundation, a key partner in the AGUKA Youth Programme.

Each entrepreneur delivered a 10-minute pitch followed by 2-3 minutes of questions from judges, with evaluation criteria including effective storytelling, compelling structure, and confident delivery.

Alice Nkulikiyinka, Country Director of BPN Rwanda, which provides mentorship to ideation finalists, advised young entrepreneurs to prioritize public interest and address youth unemployment as they develop their businesses. 

The AGUKA Ideation Entrepreneurship Programme operates through a collaborative partnership between the Ministry of Youth and Arts (Rwanda), United Nations Development Programme (UNDP) Rwanda, Tony Elumelu Foundation (TEF), and the European Union (EU). This partnership demonstrates a coordinated approach to fostering entrepreneurship, combining government leadership, international development expertise, private sector knowledge, and financial support. The programme guides youth through a comprehensive journey from ideation through pre-incubation, incubation, and growth phases, positioning Rwanda as a regional leader in youth entrepreneurship development.

Sylivanus M. Karemera is a senior editor and communication expert with over 20 years of experience, currently serving as a consultant with UNDP Rwanda!