The funding will support the establishment of the Rwanda Innovation Fund, as the country intends to boost its fast-growing economy and expand and diversify growth in a low-carbon, climate-resilient manner. 

Abdu Mukhtar, director at the Bank’s Private Sector, Industrialisation and Trade Development Department, said: “By extending this loan to the government of Rwanda, the bank wants to enable the country to develop the sector and attract private investors.

“The project will enable the bank to play a leading role in helping regional member countries develop sustainable innovation ecosystems, spur entrepreneurial growth, address funding gaps, reduce poverty and promote socioeconomic growth.”

The fund will support and provide financing for small to medium-sized enterprises, train tech-oriented entrepreneurs in business planning and management, and increase awareness of intellectual property rights in Rwanda, East Africa and beyond.

It aims to mobilise $100m in direct commitments from the Rwandan government and private investors.

The project is intended to support the country’s strategy to drive inclusive growth that is led by the private sector.