Lack of access to finance is one of the challenges faced by many youths starting their own businesses in Rwanda.
However, through RYAF fund, many youths are likely to benefit from access to loans more easily than it was before.
This will be made possible through new partnerships that will be made with different partners who will invest in the RYAF Fund hence RYAF will use this money to cover collateral security on behalf of a RYAF member who needs a loan.
According to RYAF Chairman, Hategekimana Jean Baptiste, RYAF members will be able to access loans from banks without worrying about collateral security as many are just rising in business.
The chairman also added that discussions with different banks for partnerships about this matter are on-going. “Through these partnerships, it is going to be possible for us to inform a bank to offer a loan to our member. Because we have built that relationship and trust between RYAF and the financial institutions, then the bank can do its follow up since we have every RYAF member’s information.”
Since the establishment of the RYAF Fund, each member is required to pay Rwf 12,000 per annum. “RYAF is also doing its best to increase the number of youths in agribusiness to register their business and join the fund so that when we approach these banks, we also have a reasonable amount of money for them to invest and partner with us.” Hategekimana explained.
In the year 2020, besides creating new partnerships with partners for RYAF fund to be able to support youth to access finance, RYAF also looks forward to increase the number of RYAF shops in Kigali from 1 to 25, to create savings and lending groups amongst youth in agriculture and to increase the number of youths to benefit from available grants, seeds, equipment, and livestock among many others.
From RYAF Communictaion Team