The inaugural event brought attracted young entrepreneurs from others countries
Starting a business in Rwanda is easy and takes less than six hours, but seeing it grow is one of the biggest challenges in a country with many young Chief Executive Officers popping up every day.
One of these is Claudine, who has been running a briefcase tender bidding company for two years. She says the company has been struggling due to a lack of capital and has stayed functional through online connections.
Adeline Ishimwe Alliance, the proprietor of a travel agency and a store, remains employed as a marketing manager. “The biggest challenge for us is to acquire capital and get connections, to get loans, despite existing funds and banks,” Ishimwe said.
This Sunday, a majority of such young CEOs were all dressed up and on time to attend the inaugural Young CEOs and Professionals Meetup, organized by a private firm.
The objective of the meetup, held at M-Hotel in Kigali, was to discuss the challenges that face the entrepreneurship ecosystem in Rwanda, to create awareness about financial literacy, and to understand its importance in making money.
Event organizer, Founder, and CEO of Afri-Global, Shyaka Michael Nyarwaya, says the event aims to build future billionaires in Rwanda. The idea cropped up when he was challenged at a conference to bring all young CEOs together.
Rwanda has hosted the Africa CEOs Forum, but the focus was on the big names, and the youth were practically only considered as participants.
“This youth forum will enable them to meet with potential equity and venture capital firms, banks, and investors who can buy shares to grow their ventures,” Shyaka explains.
However, he said that this requires the first step of saving to grow a business, which is still lacking.
Young CEOs from Liberia also attended
World Bank and Central Bank statistics show that while financial institutions are growing in assets, profits, and credit offered, the level of savings remains lower due to a lack of a savings culture. Gross savings (% of GDP) in Rwanda was reported at 12.53% in 2023, according to the World Bank collection of development indicators.
During a panel discussion, Shyaka explained that this problem is caused by fear to save, as most youth want to save a lot of money at once.
“The second aspect is laziness to read or be informed of what is happening in the financial sector, and the third aspect is not grabbing the opportunity when it happens but pleasing oneself with attending conferences and meetings,” he said.
In addition to available investment opportunities (capital markets, savings schemes, and a development fund), Rwanda is also an events and meetings destination in Africa, providing many opportunities for youth to exchange with successful business owners and think outside the box to create business and jobs.
However, Ruziga Ema Masantura, Rwanda National Investment Trust Ltd (RNIT) Head of Marketing, said that the most important aspect is for youth to know how to manage finances and expenditure with a savings attitude. For example, Masantura said that he started saving Rwf2,000 per day since the COVID-19 lockdown days, which now earns interest of over Rwf 750,000 a year.
Masantura added that this means one has to cut on expenses. Instead of staying in a rented house for 200,000, why not spend 180,000 and save the balance? The same with buying fuel—why pay a round figure instead of buying what you need and saving the rest?
“There is no investment without saving. This starts with the person and habits. In order to do any business, savings must be part of it because it is the first equity before going to the bank to apply for a loan,” he said.
To prove that this is simple and possible, Ugandan investor Abel Mboni Lubega, the CEO of Global Elections Observation Missions, advised the forum that the secret he used to succeed and own over 16 companies in the region was to save, reinvest, and expand.
Adeline Ishimwe Alliance, a proprietor of a travel agency
Vincent Munyeshyaka, the CEO of the Business Development Fund, also emphasized the need for savings but showed that there is a lack of financial literacy and awareness about available opportunities that the fund provides. Munyeshyaka suggested that in collaboration with commercial banks, they will be able to provide flexible guaranteed loans for youth-led businesses and startups.
As a way of moving forward, Afri-Global announced the launch of a continuous financial literacy campaign that will focus on increasing the savings culture, especially for youth in Rwanda, through outreach programs.
However, Attorney Moise Nkundabarashi, the president of the Rwanda Bar Association, advised the youth to do legal due diligence in doing business.
“You need to develop this culture of doing legal due diligence to avoid trouble in the future. This means that financial literacy alone is not enough; for example, learn more about the legal aspect of business and the existing investment funds before you start a business,” Nkundabarashi said.
