AGUKA Initiative Boosts Youth Employment, Supporting Rwanda’s NST2 Development Goals

Kigali, Rwanda – March 17, 2026

The AGUKA initiative, a program designed to empower young entrepreneurs and expand employment opportunities, has generated more than Rwf 32 billion (approximately $22 million) in revenue and helped create over 128,000 jobs within four years of implementation.

Leaders attend an exhibition presenting the results and achievements of the AGUKA initiative.

These achievements were highlighted during a review meeting held on March 17, 2026, where stakeholders gathered to assess the progress and impact of the program since its launch.

The event also presented findings from a study conducted among young beneficiaries of the initiative. The research aimed to evaluate how the program has supported youth in developing businesses, accessing employment opportunities, and strengthening their entrepreneurial capacity.

A Growing Platform for Youth Entrepreneurship

Launched in 2023, AGUKA was designed to tackle youth unemployment by supporting entrepreneurship and job creation. Initially, the program set an ambitious goal of generating 100,000 jobs and financing 5,320 youth-led projects with a budget of about Rwf 8 billion over a four-year period.

Those targets have already been surpassed. Since its inception, the initiative has enabled more than 128,000 young people to access employment opportunities, with 33 percent of the beneficiaries being women.

In addition, the program has supported approximately 2,000 entrepreneurial projects, further strengthening Rwanda’s growing ecosystem of youth-led enterprises. Among these supported projects, 45 percent are owned by women, while 4.4 percent belong to entrepreneurs with disabilities, demonstrating efforts to promote inclusivity in youth economic empowerment.

Contributing to National Development Goals

Speaking during the event, Sandrine Umutoni, State Minister at the Ministry of Youth and Arts, emphasized that AGUKA has become an important tool in addressing youth unemployment in Rwanda.

Sandrine Umutoni, State Minister at the Ministry of Youth and Arts, highlighted that the AGUKA initiative has become one of the key solutions for reducing youth unemployment

She noted that the program aligns closely with the country’s broader development framework under the National Strategy for Transformation 2 (NST2), which prioritizes job creation, poverty reduction among youth, and expanded use of technology and innovation.

“AGUKA clearly demonstrates that young people have strong ideas and entrepreneurial potential,” she said. “What they often lack are the right opportunities, mentorship, and financial support to transform those ideas into sustainable businesses.”

Financial Inclusion Challenges Persist

Despite the program’s success, stakeholders acknowledged that many youth-led enterprises still face challenges accessing financial services.

According to data presented during the meeting, 86.5 percent of supported businesses have at least opened a bank account, but only 17.4 percent have successfully obtained loans from financial institutions.

Among those who accessed financing, 22 percent secured long-term loans, while 75 percent relied mainly on small or micro-loans to sustain their operations.

Fatmata Lovetta Sesay, Resident Representative of the United Nations Development Programme (UNDP) in Rwanda, acknowledged the positive impact of the program but highlighted the persistent barriers faced by women entrepreneurs in accessing finance.

Fatmata Lovetta Sesay, Resident Representative of the United Nations Development Programme (UNDP) in Rwanda, participates in an exhibition highlighting the achievements of the AGUKA initiative.

“Many women entrepreneurs still struggle to grow their businesses because they lack access to financial services such as credit,” she said. “Together with our partners, we must continue developing targeted solutions that address these gaps and ensure women fully benefit from economic opportunities.”

A New Youth Financing Fund

To address these challenges, the Minister of Youth and Arts Development, Jean Nepo Abdallah Utumatwishima, announced plans to establish a dedicated youth investment fund aimed at expanding financial access for young entrepreneurs.

Jean Nepo Abdallah Utumatwishima, Minister of Ministry of Youth and Arts, said the government plans to establish a fund that will enable young entrepreneurs to access loans backed by collateral guarantees

The fund will particularly target youth who already operate businesses but lack the capital needed to expand their operations.

“AGUKA itself reflects the idea of growth and expansion,” he said. “However, we still face challenges related to youth access to finance. This new fund will help young entrepreneurs who already have viable businesses obtain the financial support required to scale their enterprises.”

Under the proposed framework, the fund will guarantee up to 90 percent of the collateral required by banks, enabling young entrepreneurs to access credit at a reduced interest rate of 9 percent annually.

Real Stories of Transformation

For many beneficiaries, AGUKA has been a turning point.

Dieudonne Iradukunda, founder of Youth Proud Ltd, a company that produces wooden tableware and kitchen products, shared how the program transformed his entrepreneurial journey.

After graduating from university, Iradukunda struggled to find employment despite his qualifications. Faced with limited job opportunities, he decided to start a small business producing wooden dining utensils.

Through the AGUKA program, his business proposal won at the district level, earning him a Rwf 1 million grant that allowed him to launch the company.

“Without AGUKA, I would not have been able to start this business,” he said. “Today, the company generates around Rwf 20 million in annual revenue, and we employ more than 20 permanent workers.”

Continued International Support

Development partners have also reaffirmed their commitment to supporting Rwanda’s youth empowerment efforts.

                            Belén Calvo Uyarra, Ambassador of the European Union to Rwanda

Belén Calvo Uyarra, Ambassador of the European Union to Rwanda, emphasized the EU’s continued partnership with the country in promoting youth entrepreneurship and economic development.

She noted that empowering young people through entrepreneurship, innovation, and access to finance remains a critical driver of sustainable development.

As Rwanda continues to invest in its young population, initiatives like AGUKA are increasingly seen as central to unlocking the country’s entrepreneurial potential while advancing national development priorities.