This report is made possible by the support of the
American people through the United States Agency for
International Development (USAID). The content
discussed is the sole responsibility of DAI and does not
necessarily reflect the views of USAID or the US
Government.
RWANDA NGURIZA NSHORE
QUARTERLY REPORT FY 2021: QUARTER 1
October 1 – December 30, 2021
Project Period of Performance: April 24, 2018 – April 23, 2023
Group of 10 Rwandan SMEs, Nguriza
Nshore staff, and Nguriza Nshore
transaction advisors who attended the
Sankalp Africa 2020 Summit
Group photo featuring panelists and high-level guests at
the official launch of the Entrepreneurship Development
Policy.
QUARTERLY REPORT
YEAR 4, FISCAL YEAR 2021 – QUARTER 1
(OCTOBER 1 – DECEMBER 30, 2021)
Rwanda Nguriza Nshore
Program Title: Rwanda Nguriza Nshore
Sponsoring USAID Office: USAID Rwanda
Contract Number: 72069618C00001
Contractor: DAI Global, LLC
Date of Publication: January 30, 2021
Author: The Nguriza Nshore Team
This report is made possible by the support of the American people through the United States Agency for
International Development (USAID). The content discussed is the sole responsibility of DAI and does not necessarily
reflect the views of USAID or the US Government.
CONTENT
ABBREVIATIONS AND ACRONYMS ......................................................................................................................... i
EXECUTIVE SUMMARY .................................................................................................................................................. 3
Q1 Milestones Achieved ................................................................................ Error! Bookmark not defined.
Q1 Component 1 Summary: Improve the capacity of FIs and NBFIs to finance SMEs and
agribusinesses ................................................................................................................................................................. 3
Q1 Component 2 Summary: Increase private and commercial investment into SMEs and
agribusinesses ................................................................................................................................................................. 4
Q1 Component 3 Summary: Strengthen the policy environment for SMEs and agribusinesses to
increase their business performance and profitability .......................................................................................... 4
TECHNICAL IMPLEMENTATION ACTIVITIES ....................................................................................................... 4
Nguriza Nshore Financial Market Systems Approach .......................................................................................... 4
Nguriza Nshore Activities Flow and Logic ............................................................................................................. 6
COMPONENT I: EXPAND CAPACITY OF FIs AND NBFIs TO FINANCE SMEs AND
AGRIBUSINESSES .............................................................................................................................................................. 7
Q1 Achievements............................................................................................. Error! Bookmark not defined.
Q1 Activities and Milestones...................................................................................................................................... 7
Challenges and Mitigating Measures ......................................................................................................................... 8
COMPONENT 2: INCREASE PRIVATE CAPITAL INVESTMENT FOR SMEs AND AGRIBUSINESSES ... 9
Q1 Achievements............................................................................................. Error! Bookmark not defined.
Q1 Activities and Milestones...................................................................................................................................... 9
Challenges and Mitigating Measures ....................................................................................................................... 15
Lessons Learned and Opportunities ....................................................................................................................... 16
COMPONENT 3: STRENGTHEN THE POLICY ENVIRONMENT FOR SMEs AND AGRIBUSINESSES
TO INCREASE PERFORMANCE AND PROFITABILITY ..................................................................................... 17
Q1 Achievements........................................................................................................................................................ 17
Q1 Activities and Milestones.................................................................................................................................... 17
Challenges and Mitigating Measures ....................................................................................................................... 19
Lessons Learned and Opportunities ....................................................................................................................... 20
CROSS CUTTING THEMES ........................................................................................................................................ 21
Q1 Activities and Milestones.................................................................................................................................... 21
MONITORING, EVALUATION & LEARNING ...................................................................................................... 22
Q1 Activities and Milestones.................................................................................................................................... 22
Challenges and Mitigating Measures ....................................................................................................................... 25
Lessons Learned and Opportunities ....................................................................................................................... 25
COLLABORATING, LEARNING & ADAPTING ................................................................................................... 25
Q1 Activities and Milestones.................................................................................................................................... 25
Collaborating ................................................................................................................................................................ 25
Learning ......................................................................................................................................................................... 26
Adapting......................................................................................................................................................................... 30
COMMUNICATIONS .................................................................................................................................................... 31
Q1 Activities and Milestones.................................................................................................................................... 31
ENVIRONMENTAL COMPLIANCE .......................................................................................................................... 33
CONSORTIUM OVERVIEW AND STRATEGIC PARTNERSHIPS .................................................................... 33
OPERATIONS AND ADMINISTRATIVE ACTIVITIES .......................................................................................... 33
Development of Key Deliverables for USAID ..................................................................................................... 34
Grants Management ................................................................................................................................................... 34
Staffing ............................................................................................................................................................................ 34
Financial Summary ....................................................................................................................................................... 34
ANNEXES ......................................................................................................................................................................... 34
Annex 1: Success Stories ........................................................................................................................................... 34
Annex 2: Rwanda Nguriza Nshore Performance Indicators ............................................................................ 37
Annex 3: Nguriza Nshore Partner Selection ........................................................................................................ 39
Annex 4: Nguriza Nshore Market Systems Theory of Change ....................................................................... 41
i | RWANDA NGURIZA NSHORE | QUARTERLY REPORT: Q1 FY 2021 feedthefuture.gov
ABBREVIATIONS AND ACRONYMS
ACA Angel Capital Association
AMIR Association of Microfinance Institutions in Rwanda
AMIFA
BDS
Atlantic Microfinance for Africa
Business Development Services
BRD Development Bank of Rwanda
BSP Business Service Provider
CEO Chief Executive Officer
CLA Collaborative, Learning and Adapting
COR Contracting Officer Representative
DIS Development Information Solution
EDP Entrepreneurship Development Policy
EOI
ERF
EVPA
Expression of Interest
Economic Recovery Fund
European Venture Philanthropy Association
FI Financial Institution
FtF Feed the Future
FTFMS Feed the Future Management System
GoR Government of Rwanda
IM Implementing Mechanism
KCB Kenya Commercial Bank
MEL Monitoring, Evaluation and Learning
MELP Monitoring, Evaluation and Learning Plan
MFI Microfinance Institution
MITF Microfinance Investment Trust Fund
MINECOFIN Ministry of Finance and Economic Planning
MINICOM Ministry of Trade and Industry
MOU Memorandum of Understanding
MSME Micro Small and Medium Enterprises
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NBFI Non-Bank Financial Institution
NBS Nature-Based Solutions
NCPD National Council of Persons with Disabilities
NGO Non-Governmental Organization
NISR National Institute of Statistics Rwanda
PMO Prime Minister Office
PPD Public Private Dialogue
PSF Private Sector Federation
RBA Rwanda Banker’s Association
RCWE Rwanda Chamber of Women Entrepreneurs
RDB Rwanda Development Board
RFL Rwanda Finance Limited
RFP Request for Proposal
RIM Réseau Interdiocésain de Microfinance
RYAF Rwanda Youth in Agribusiness Forum
SACCO Savings and Credit Cooperative
SME Small and Medium Enterprise
SOW Scope of Work
SWG Sector Working Group
TA Transaction Advisor
TAMIS
TMEA
Technical and Administrative Management Information System
Trademark East Africa
UFC Umutanguha Finance Company Plc
USAID United States Agency for International Development
USD United States Dollar
USG United States Government
ZOI Zones of Influence
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EXECUTIVE SUMMARY
Nguriza Nshore is pleased to submit its Quarterly Report for the period from October 1 to December
30, 2020.
The Nguriza Nshore Activity, herein referred to as Nguriza Nshore (“Lend So I May Invest”) or “the
Activity,” is a five-year project ending on April 23, 2023 implemented by DAI. Nguriza Nshore was
designed by USAID to foster rural economic growth by facilitating the emergence of dynamic small- and
medium-sized enterprise (SME) and agribusiness sectors. By improving the enabling environment for
SME development and finance, alleviating constraints to investment, and increasing access to finance,
Nguriza Nshore facilitates the expansion of SMEs as a means to promote broad-based economic
growth, job creation and social development.
Nguriza Nshore activities are centered on three interconnected components.
• Component I: Improve the capacity of FIs and NBFIs to finance SMEs and agribusinesses
• Component 2: Increase private and commercial investment into SMEs and agribusinesses
• Component 3: Strengthen the policy environment for SMEs and agribusinesses to increase their
business performance and profitability
The Activity works directly with financial institutions, investors and the associations, organizations and
government entities that support them in order to increase their willingness and capacity to finance
agribusiness and SMEs in Rwanda. At the same time, it works directly with these businesses to increase
their attractiveness to investors and preparedness to receive and manage investment. The Activity
creates jobs through the agribusinesses and SMEs that gain increased access to finance and hire new
employees. These growing businesses also catalyze job creation up and down the value chains as they
buy more from local farmers and suppliers, sell more through local intermediaries and stores and
purchase more services locally.
Collaboration, learning and adaptation are a constant part of Nguriza Nshore’s work. This has been
particularly true during the past year when it adapted its support and partnership with Financial
Institutions (FIs), SMEs and Government of Rwanda (GoR) ministries and agencies to the conditions due
to COVID-19 guidelines. This adaptation resulted not only adjusting to remote and virtual engagement
with partners, but also lead the Activity taking on new types of initiatives to help its partner SMEs and
financial institution and investor partners to survive, minimize losses and conduct business in new ways.
Achievements are summarized by component below.
Q1 Component 1 Summary: Improve the capacity of FIs and NBFIs to finance SMEs and
agribusinesses
The Activity continues to engage with its existing Bank, MFI and NBFI partners such as AMIFA Rwanda,
Cogebanque, and BeneFactors. In Q1, BeneFactors provided funding in invoice factoring.
In addition, the Activity is supporting SACCOs through their umbrella organization, AMIR. In Q1,
Nguriza Nshore partnered with AMIR to train SACCOs and MFIs in modules aiming at equipping them
to increase their lending to SMEs. Following a successful collaboration1 between Goshen Finance and a
1 The collaboration between Nguriza Nshore, Zamura Feeds and Goshen Finance aimed at providing farmers non-collateralized
loans at a cheaper rate – 14.5% versus 16,5% per annum.
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Nguriza Nshore partner, Zamura Feeds, the Activity finalized a direct partnership with Goshen Finance
to raise capital. In the coming quarter, Nguriza Nshore will help Goshen Finance to develop a three-year
business plan tailored to meet investor standards.
Q1 Component 2 Summary: Increase private and commercial investment into SMEs and
agribusinesses
During this reporting period, four deals were closed for Kigali Farms Ltd, Viebeg Technologies, Pride
Farms and Seeds Trust Rwanda.
Nguriza Nshore sourced new SMEs and selected five for investment readiness support. As noted above,
the Activity is also providing investment readiness support to Goshen Finance. Nguriza Nshore also
supported existing SMEs to respond to investor requests, many of which are nervous about the current
business and market environment due to COVID-19. For instance, the Activity updated financial models
for Jerika and AC Group to share with investors. Furthermore, Nguriza Nshore supported investor due
diligence of four SMEs and helped one review term-sheets provided by a FI.
Q1 Component 3 Summary: Strengthen the policy environment for SMEs and
agribusinesses to increase their business performance and profitability
During the reporting period, Nguriza Nshore made significant progress in supporting the GoR in two
key areas — supporting the implementation of the Entrepreneurship Development Policy (EDP) and
managing the Economic Recovery Fund (ERF). Facilitated by the Activity, GoR through MINICOM
officially launched the EDP through a hybrid attendance event. Furthermore, Nguriza Nshore supported
MINICOM to conduct trainings for Business Development Advisors (BDAs) in line with the EDP’s
Business Support pillar. The trainings covered the following topics: Business registration, advanced
business plan development, microbusiness simulation, business coaching (methodology), business model
canvas, local taxation, recap on entrepreneurship skills and psychometric test. Nguriza Nshore also
initiated the recruitment of an advisor to BDF’s CEO and commenced its analysis of BDF’s operations in
light of improving its role in the management of the ERF’s funding.
TECHNICAL IMPLEMENTATION ACTIVITIES
Nguriza Nshore Financial Market Systems Approach
Financial market systems evolve in response to the real economy which is comprised of other market
systems, such as agricultural market systems or that of SMEs. The value addition created in the financial
market system is directly linked to the value its products and services help unlock in the real economy.
As a result, Nguriza Nshore focuses not only on pushing more credit through banks. Instead it works to
improve the interconnectedness of the financial market system with agribusiness and SMEs. Nguriza
Nshore also helps build a more inclusive financial market system comprised of diverse actors that are
capable of delivering the range of services needed by agribusinesses and SMEs.
Figure 1: Rwanda Nguriza Nshore Components
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To achieve its objectives, Nguriza Nshore’s Component I will:
• Evolve the financial services competitive landscape by moving banks and NBFIs away from product-
driven strategies toward client-oriented products and services by helping them understand client
needs. Help FIs customize products for them as well as help them improve risk management and
access de-risking mechanisms to reach SMEs.
• Assist banks to shift down-market into emerging market segments, including rural and bottom-of-
the-pyramid, by helping them develop SME strategies and units with SME-appropriate products,
policies, procedures and de-risking mechanisms. Encourage banks to compete for bottom-of-the-
pyramid market segments via a full range of tailored products targeting micros, households and
entrepreneurs that include both savings and lending-based products.
• Support NBFIs to move upmarket to expand their service offers, tailor products, and evolve toward
larger, growth-oriented SMEs.
To achieve its objectives, Nguriza Nshore’s Component 2 will:
• Identify and support the growth of agribusinesses that work with Rwandans that rely on agriculture
for their livelihood, making them more competitive and attractive to financiers.
• Identify and support SMEs that serve the mass market, offering products and services to ordinary
Rwandan citizens, including the bottom-of-the-pyramid market segments.
• Work with agribusinesses and SMEs with growth potential and the possibility of offering or
stimulating employment opportunities for ordinary citizens, including rural Rwandans and
economically disadvantaged populations (women, youth and persons with disabilities).
• Help increase the amount of non-bank financial institution capital available to agribusinesses and
SMEs, including loans and private equity.
• Encourage the emergence of tailored and innovative financial products, including social impact
investment, and help Rwandan firms qualify for them.
• Facilitate the emergence of more robust exit options for investors by building links to existing
regional investors exchanges, private placement services/match-makers and mergers/acquisitions.
To achieve its objectives, Nguriza Nshore’s Component 3 will:
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• Support the GoR to become more constituent-oriented, allowing ordinary citizens to have a greater
voice in policy development and oversight. Support better implementation of policy, including
stronger monitoring, reporting and accountability for results.
• Catalyze the development and strengthening of local support services to business, the financial
sector and GoR such as research, public relations, media and industry associations.
Nguriza Nshore Activities Flow and Logic
Nguriza Nshore will follow a standard process from partner sourcing and selection to deal making and
policy implementation. This process has been established based on DAI experience where we have
implemented market system projects. This transparent and open process allows for the maximum
participation of local market actors.
The graphic below depicts the inclusive process:
In the sections below, the Nguriza Nshore has provided a detailed summary of its results by component
and the other key areas of its work.
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COMPONENT I: EXPAND CAPACITY OF FIs AND NBFIs TO
FINANCE SMEs AND AGRIBUSINESSES In Q1, Component 1 activities contributed to the following indicators:
• EG.3.2-27 Value of agriculture-related financing accessed as a result of USG assistance [IM-Level]
• Number of jobs created with USG assistance (Custom)
• Value of loans leveraged using de-risking tools (Custom)
• Number of financial and non-financial institutions receiving USG assistance that extended loans
and other financial products to SMEs (Custom)
Q1 Activities and Milestones
ACTIVITY
Q1 MILESTONES & Q2 ACTIVITIES
Goshen Finance (new Q1 FY2021)
Goshen Finance is a Rwandan MFI incorporated in 2005, which targets
SMEs as well as women and youth cooperatives.
Goshen submitted a request for technical assistance to develop a three-
year business plan. Nguriza Nshore reviewed and approved the request,
and developed an RFP tailored to meet investor standards to support the
MFI in developing a business plan. More information regarding Goshen
Finance is provided under Component 2 section of this report.
Q1: Goshen Finance submitted a request for technical
assistance; Review completed
Q2: Release RFP and contract a BSP to provide the
technical assistance
Atlantic Microfinance for Africa Rwanda Plc (AMIFA Rwanda) (Q2
FY2020)
AMIFA Rwanda submitted a request for technical assistance to support in
contextualizing their financial products, currently used in Morocco where
the MFI is headquartered, into the Rwandan context.
Nguriza Nshore reviewed the request this quarter and began working on
an RFP.
Q1: AMIFA submitted a request for technical assistance;
Review completed
Q2: Release RFP and contract a BSP to provide the
technical assistance
Umutanguha Finance Company Plc (ongoing from Q1 FY2020)
Following Umutanguha’s request for technical assistance in developing an
SME strategy, Nguriza Nshore drafted and issued an RFP. The SME
strategy is expected to help the MFI to design products for SMEs as the
existing products are customized for micro businesses and lead to
becoming a more active financier of SMEs.
Q1: Issued an RFP to support the MFI to develop an SME
strategy
Q2: Select BSP to provide the technical assistance; BSP
to begin work
Development Bank of Rwanda (BRD) (ongoing Q1 FY2020)
BRD started going under internal restructuring in Q4 FY2020, which has
put partnership discussions on hold. No further progress was recorded in
Q1.
Q1: No further progress due to BRD internal
restructuring
Q2: On hold until internal restructuring is completed
BeneFactors Ltd (ongoing from FY2019)
BeneFactors leveraged its grant from Nguriza Nshore in FY2019 and
additional loans secured from the grant to revolve reflow – interest and
principal repayments including fees – into additional funding in new
factoring in Q1 2021.
Nguriza Nshore also continued providing investment readiness support to
BeneFactors as further detailed under Component 2 section of this report
Q1: Collected data on factoring for MEL reporting
Q2: Continue collecting data on factoring for MEL
reporting
Zamura Feeds (ongoing FY2019)
In response to the success of the tripartite agreement between Zamura
Feeds, Goshen Finance and Nguriza Nshore, the Activity began discussions
on how the innovative partnership can be extended to another FI, since
the agreement ended with FY 2020.
However, Zamura Feeds experienced challenges due to COVID-19 which
resulted in the company revising its internal operations. Nguriza Nshore
has put on hold the support to Zamura Feeds until the company
completes internal restructuring.
Q1: No further progress as the company is going under
internal restructuring
Q2: Resume conversations for a new partnership
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Cogebanque (ongoing from FY2019)
The role of the embedded advisor will be to facilitate the FI to increase its
lending to SMEs’ business growth through in implementation of the SME
Strategy. The advisor will also support Cogebanque to segment SMEs,
facilitate the development of financial products that fits all segments and
prioritize service to the segmented SMEs, depending on the bank’s
interests; and support and monitor the DFC guarantee and any other
guarantee.
Additionally, Nguriza Nshore supported Cogebanque to respond to due
diligence requests by DFC, for a USD 12 – 15 million term-sheet.
Furthermore, Nguriza Nshore engaged Cogebanque in SME workshops,
further detailed under Component 2 section in this report.
Q1: Hiring process of the embedded advisor completed;
Supported Cogebanque to respond to DFC requests
during the due diligence
Q2: Embedded advisor to begin work at Cogebanque;
Continue supporting Cogebanque to implement the SMEs
Strategy and facilitate the use of DFC guarantee after
approval.
Association of Microfinance Institutions in Rwanda (AMIR) (ongoing
FY2019)
Nguriza Nshore partnered with AMIR to conduct the third and fourth
capacity building training with MFIs and SACCOs. The virtual training
covered the same modules as previous trainings, namely Corporate
Governance, Business Continuity Plan, and Product Design, Lending
Procedures and Recovery Measures. Each of these trainings convened 80
participants from 40 MFIs and SACCOs selected from all 30 districts of
the country.
Additionally, Nguriza Nshore supported AMIR to disseminate findings of a
COVID-19 impact assessment that the Activity helped AMIR carry out in
Q4 FY 2020.
Q1: Carried out the third and fourth capacity building
training with MFIs and SACCOs; Supported AMIR to
disseminate findings of a COVID-19 impact assessment
Q2: Provide additional training to SACCOs which
completed previous trainings, with an aim to increase
their lending activities. Training topics will include
financing and developing products related to livestock
farming.
Réseau Interdiocésain de Microfinance (RIM) (ongoing Q1 FY 2019)
AZIMUT, the BSP selected to design an agribusiness strategy for RIM,
began work in Q1. AZIMUT submitted an inception report, which
provides a roadmap of the technical support to be provided to RIM.
AZIMUT submitted a draft agribusiness strategy in Q1, which both
Nguriza Nshore and RIM will provide feedback on during the next
quarter.
Q1: BSP submitted an inception report and a draft
agribusiness strategy
Q2: Validation of the agribusiness strategy; RIM to begin
the strategy’s implementation
AB Bank (ongoing from FY2019)
In Q1, Nguriza Nshore approved the AB Bank’s request for support to
develop a business restart strategy. The business restart strategy will allow
the bank to better assess and to respond to new financing needs of its
SME customers, to rebuild a quality loan portfolio through adjusted and
flexible loan conditions while also protecting its SME customers from
being over-indebted.
Q1: Reviewed AB Bank’s request for technical assistance
Q2: AB Bank to submit revised concept note; Prepare
and issue RFP
Equity Bank (ongoing from FY2019)
Equity Bank has a department dedicated to supporting women
entrepreneurs. In Q1, Nguriza Nshore began discussions with the bank to
explore areas of collaboration and partnership under the women
entrepreneurs’ department.
Q1: Began partnership discussions with the women
entrepreneurs’ department under Equity Bank
Q2: Receive a concept note from the FI about specific
areas of support; Develop a SOW
Challenges and Mitigating Measures
FIs are facing liquidity challenges. FIs especially MFIs were required to restructure loans, extending
the repayment period, because of COVID-19. Despite the restructuring, clients are still facing
challenges, and many are not following the new repayment schedules, either delaying payments or
defaulting. To address this challenge, Nguriza Nshore will continue sensitizing FIs on the use of the ERF
for liquidity and as a way to continue to fund their customers to keep their business operations going.
The Activity will also continue advocating with GoR to help ensure a better uptake of the ERF.
Additionally, Nguriza Nshore will continue supporting the SMEs it partners with to remodel their
financials, and use these to discuss with their banks, with an aim to restructure their loan obligations.
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Bureaucracy affecting activity implementation. Increased decision-making layers have hindered
the progress of certain activities that Nguriza Nshore had planned to do. For instance, Nguriza Nshore
had planned a workshop in partnership with the Rwandan Bankers Association (RBA) on the ERF,
bringing together banks and Government. However, securing RBA’s involvement in any activity requires
approval from different departments as well as from its board of directors, which have still not been
secured. To mitigate this challenge, Nguriza Nshore will examine if relaying the information directly to
FIs is better than going through RBA.
COMPONENT 2: INCREASE PRIVATE CAPITAL INVESTMENT FOR
SMEs AND AGRIBUSINESSES
In Q1, Component 2 activities contributed to the following indicators:
• EG.3.1-14 Value of new USG commitments and private sector investment leveraged by the
USG to support food security and nutrition [IM-Level]
• Number of jobs created with USG assistance (Custom)
• EG.3.2-26 Value of annual sales of firms and farms receiving USG assistance [IM-Level]
• Percentage of firms receiving direct support by the Activity that report being able to recruit
more labor as a result of investment (Custom)
• Number of firms receiving USG-funded technical assistance for improving business performance
(Custom)
Q1 Activities and Milestones
1. Sourcing
During Q1, Nguriza Nshore sourced SMEs and other potential investments/partnerships through a
variety of formal and informal channels: transaction advisors, networking events, referrals, workshops,
roadshows etc. In addition to these methods, the Activity conducted several outreach activities to
contact harder-to-reach SMEs and microenterprises and maintains its media channels through which
interested SMEs can contact the Activity. During this period, there was no COVID-19 lockdown in place
which helped Nguriza Nshore carry out sourcing activities, described below. However, due to social
distancing and other COVID-19 curbing measures, the Activity was constrained to do smaller events,
thus affecting the number of SMEs that Nguriza Nshore could reach.
ACTIVITY
Q1 MILESTONES & Q2 ACTIVITIES
Workshops and Networking Events (ongoing Q1 FY2020)
In Q1, Nguriza Nshore hosted four SME workshops on alternative
financing in two districts of the Western Province namely Rusizi and
Rubavu. Two were organized in partnership with Rwanda Chamber of
Women Entrepreneurs (RCWE), while the other two were hosted in
partnership with Rwanda Youth in Agribusiness Forum (RYAF) and
National Commission for Persons with Disabilities (NCPD). During
these workshops, the Activity identified several growth-oriented SMEs,
of which three are already in discussions for financing with Nguriza
Nshore partner FIs, Cogebanque and AMIFA. The workshops targeting
women and youth entrepreneurs were organized separately from each
other because both categories of entrepreneurs face different realities.
Q1: Three women entrepreneurs from the
workshops are now in in discussions with Nguriza
Nshore partner FIs Cogebanque and AMIFA
Q2: Follow up with identified SMEs to determine if
they will be selected for investment readiness
support; Host one alternative financing SME
workshops in partnership with RCWE, RYAF and
NCPD in the Eastern Province
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This was a lesson learned by the Activity during similar workshops in FY
2020.
Roadshows (ongoing FY2019)
Nguriza Nshore conducted roadshows in five districts where the activity
visited SMEs.
Q1: Roadshows conducted in five districts, SMEs
were visited;
Q2: Follow up on visited SMEs to determine if
they will be selected for investment readiness
support
SMEs that contacted Nguriza Nshore via walk-ins the Activity
website, email, and/or social media (ongoing FY2019)
SMEs contacted Nguriza Nshore through the Activity’s media channels.
None of these SMEs were selected, as they did not fulfill Nguriza
Nshore’s selection criteria, which include defined & approved Business
Model; high growth market potential; ability to quickly reach profitability after funding; capacity to generate significant free cash flow for
reinvestment; potential to become leaders within applicable sectors;
strong corporate governance structure and management team and; actor
in the agribusiness sector eco-system.
Due to COVID-19, Nguriza Nshore’s office was closed, therefore no
walk-ins were recorded. However, two SMEs contacted Nguriza Nshore
via the project’s telephone line. These SMEs will be screened during Q2.
Q1: SMEs contacted Nguriza Nshore;
Q2: Continue mining media channels for new
SMEs. Screen SMEs which contacted Nguriza
Nshore via telephone line to determine which
companies, if any, will receive investment readiness support
Note: SMEs in Stage 1 are not identified by name for confidentiality purposes because they have yet to sign an NDA or contract with
Nguriza Nshore.
1I. Screening and Selection
From the SMEs sourced, a few were selected for continued engagement with Nguriza Nshore based on
meeting Activity selection criteria.
ACTIVITY
Q1 MILESTONES & Q2 ACTIVITIES
Screening and Selection
Nguriza Nshore selected five new SMEs for ongoing investment readiness
support and deal making.
Q1: Selected five SMEs for investment readiness
support
Q2: Continue supporting new companies to
determine whether they can be on the pipeline,
Provide technical assistance or investment
readiness support
III. Investment Readiness Support and Deal Making
During Q1, SMEs received investment readiness support, including: strategic advice, financial modeling,
investment memorandums, pitch decks, and pitch training, etc. Some companies also received specialized
consulting in finance, accounting, operations and marketing on a short-term basis to improve business
performance.
ACTIVITY
Q1 MILESTONES & Q2 ACTIVITIES
Goshen Miracle Market (new Q1 FY2021)
Goshen Miracle Market is e-commerce platform specializing in retail trade.
Q1: Signed MOU and NDA; Began reviewing essential
documents
Q2: Provide investment readiness support
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In Q1, Nguriza Nshore signed a contract with Goshen Miracle Market and
began reviewing its essential documents including financial models and
business plan. This review will enable the Activity to provide tailored
investment readiness support to Goshen Miracle
Gerard Trading Company (new Q1 FY2021)
Gerard Trading Company is a general trade company specializing in coffee
export.
In Q1, Nguriza Nshore signed a contract and NDA with Gerard Trading.
Additionally, the Activity reviewed Gerard Trading’s financial statements and
business plan, carried out a financial analysis and completed the company’s
investment readiness review. The investment readiness review will enable
Nguriza Nshore to design a tailored investment readiness support for
Gerard Trading
Q1: Signed MOU and NDA; Reviewed essential
documents; Completed investment readiness review
Q2: Provide investment readiness support
Seeds of Trust (new Q1 FY2021)
Economic Sector: Seeds Grain Processing
Seeds of Trust is an agribusiness company which specializes in multiplying and
selling cereal, high end beans and maize seeds.
Seeds of Trust applied for funding through HortInvest through the
Investment and Innoveation Fund (IIF). The program’s purpose is to provide
matching grants to eligible SMEs that already have equity or other type of
investment to match with the grant from HortInvest. To support Seeds of
Trust, HortInvest and Nguriza Nshore conducted the due diligence on the
SME to inform HortInvest the investor in this instance, on the viability of the
SME. Nguriza Nshore conducted the due diligence on the SME to inform
HortInvest the investor in this instance, on the viability of the SME.
In Q1, Nguriza Nshore reviewed Seeds of Trust’s business plan, financial
statements, and provided investment advice and further recommendation to
HortInvest with regards to the company.
Q1: Reviewed essential documents; Provided
investment advice and recommendations
Q2: Provide investment readiness support in
partnership with HortInvest
Pride Farms (new Q1 FY2021)
Economic Sector: Farm management and organic food production
Pride Farms specializes in farm management, more specifically in climate-
smart farming practices, market driven planning, and the transfer of vital
technologies.
Like Seeds of Trust, Pride Farms applied for funding through HortInvest and
Nguriza Nshore conducted the due diligence on the SME to inform
HortInvest the investor in this instance, on the viability of the SME.
During this quarter, Nguriza Nshore reviewed Pride Farm’s business plan,
financial statements, and provided investment advice and further
recommendation to HortInvest with regards to the company.
Q1: Reviewed essential documents; Provided
investment advice and recommendations
Q2: Provide investment readiness support in
partnership with HortInvest
Barrow Education Consult (new Q1 FY2021)
Barrow Education Consult is a company which runs Maranatha Nursery and
Primary School in Rubavu district, Western Province.
In Q1, Nguriza Nshore signed a contract and NDA with Barrow Education
Consult. The Activity also reviewed Barrow’s essential documents and
carried out an investment readiness review to design tailored support for the
SME.
Q1: Signed MOU and NDA; Reviewed essential
documents; Carried out investment readiness review
Q2: Provide investment readiness support
Goshen Finance (ongoing FY2020)
Goshen Finance is a Rwandan FI which targets micro, small and medium
entrepreneurs through microfinance services.
In Q1, Goshen submitted a request for technical assistance to update the FI’s
five-year business plan, which Nguriza Nshore reviewed and approved.
Q1: Signed MOU and NDA; Reviewed and approved
request for technical assistance; Completed company
valuation; Reviewed financial models
Q2: Release RFP for technical assistance; Continue
providing investment readiness and deal making support
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Additionally, Nguriza Nshore reviewed its financial models. Nguriza Nshore
also conducted investor mapping, and the FI is under review by several
investors.
Arise and Shine (ongoing Q4 FY2020)
Nguriza Nshore completed Arise and Shine’s investor mapping and updated
its one pager. The Activity also began designing Arise and Shine’s pitch deck
and reviewing its existing investment memorandum and financial model
Q1: Completed investor mapping; Updated one pager
Q2: Complete pitch deck and investment
memorandum; Continue providing investment readiness
support Effective M&N (ongoing Q4 FY2020)
Nguriza Nshore completed Effective M&N’s investor mapping and updated
its one pager.
Q1: Completed investor mapping; Updated one pager
Q2: Complete strategy report and pitch deck; Continue
providing investment readiness support
Etablissement Nkubili Alfred and Sons (ENAS) (ongoing Q2 FY2020)
Economic Sector: Food Production
Nguriza Nshore’s investment readiness support was put on hold at the
request of ENAS’ General Manager
Q1: On hold
Q2: Determine whether to continue investment
readiness support SINA Gérard Urwibutso Enterprise (ongoing Q2 FY2020)
Nguriza Nshore continued supporting SINA to respond to requests from
Afreximbank as part of the due diligence. The Activity also supported SINA
to present and defend the company’s business model and financial models,
which the Activity revised to fit investor standards. Afreximbank’s
preliminary committee approved the application and issued the final term-
sheet. Following this approval, Afreximbank planned for an onsite due
diligence in Q2.
SINA also received a draft term-sheet from another investor, which the
Activity is helping SINA to review.
Q1: Supported SINA to present its business model and
financial models to Afreximbank; Afreximbank approved
application and submitted final term-sheet
Q2: Support SINA’s due diligence; Continue providing
investment readiness and deal making support
Mount Carmel (ongoing Q2 FY2020)
Mount Carmel is currently focusing on recovering from the effects of
COVID-19 and has put on hold its efforts to raise financing for expansion.
The SME therefore requested Nguriza Nshore to put its investment
readiness support on hold.
Q1: Support on hold
Q2: Determine whether to continue providing
investment readiness support
Home Inn (ongoing Q2 FY2020)
As a business in the tourism and hospitality industry, Home Inn was
particularly affected by COVID-19. Consequently, the SME asked Nguriza
Nshore to put its investment readiness support on hold, as it is currently
focusing on recovering from the pandemic.
Q1: Support on hold
Q2: Determine whether to continue providing
investment readiness support
Imarb (ongoing Q1 FY2020)
In Q1, Bank of Kigali (BK) issued a term-sheet, which Nguriza Nshore is
supporting IMARB to review. The Activity also reviewed Imarb’s audited
financial statements as well as its financial models and prepared a pitch deck
for the SME.
Additionally, Nguriza Nshore continued updating Imarb’s investor map, and
facilitated investor calls.
Q1: Supported IMARB to review BK’s term-sheet;
Reviewed audited financial statements and financial
models; Prepared a pitch deck; Facilitated investor calls
Q2: Support Imarb to negotiate with BK on required
collateral; Continue providing investment readiness and
deal making support
Viebeg Technologies (ongoing Q1 FY2020)
Nguriza Nshore continued updating Viebeg’s investor map and facilitated
investor calls. Following these calls, Viebeg received a letter of interest for a
working capital product investment.
Q1: Updated Viebeg’s investor map; Facilitated investor
calls; Received letter of interest
Q2: Continue providing investment readiness and deal
making support Jerika Enterprises (ongoing Q1 FY2020)
Economic Sector: Food Processing
Nguriza Nshore completed Jerika’s financial analysis and began updating
financial models. Additionally, the Activity updated Jerika’s investment
memorandum and facilitated investor calls.
Q1: Completed financial analysis and investment
memorandum; Facilitated investor calls
Q2: Continue providing investment readiness and deal
making support
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Jali Finance (ongoing Q2 FY2020)
Economic Sector: Finance
Nguriza Nshore supported Jali Finance’s due diligence site visit from an
interested investor and supported the company to respond to investor
requests.
The Activity also began reviewing Jali’s request for technical assistance to
train management, board and a contractor. This training is one of the key
requirements to trigger a grant disbursement.
Nguriza Nshore also provided impact assessment support to Jali, further
detailed under the MEL section of this report.
Q1: Supported investor due diligence visit; Assisted Jali
to respond to investor requests; Began reviewing Jali’s
request for technical assistance; Provided impact
assessment support
Q2: Complete review of the technical assistance
request; Provide communications support; Continue
providing investment readiness and deal making support
MVend (ongoing Q2 FY2020)
Due to its on-going internal re-assessment of its business operations, MVend
has been unable to respond to investor demands and thus has put its
fundraising on hold temporarily.
Q1: Support on hold
Q2: Determine whether to continue providing
investment readiness support to MVend
AC Group (ongoing Q1 FY2020)
Nguriza Nshore completed the evaluation of AC Group’s business and
fundraising strategy as well as the assessment of the company’s transaction
documentation. The Activity also reviewed AC Group’s existing financial
models, and revised its financial projections based on Q4 FY2020 due
diligence findings.
AC Group, like many other companies in the transport sector, continued to
suffer from the effects of COVID-19 lockdown and curfews. Nguriza Nshore
continued to support AC Group by mapping out new investors aligned with
the current economic conditions as well as seeking more COVID-19
business relief and support funds to help the company build more run-way to
survive during these months of depressed revenues as effects of the
pandemic continue to be felt.
Q1: Completed the evaluation of the business and
fundraising strategy; Reviewed financial models;
Assessed transaction documentation; Continued
monitoring BRD loan disbursement
Q2: Continue supporting AC Group to secure relief
funds including the ERF and support facilities; Continue
providing investment readiness and deal making support
Umutanguha Finance Company Plc (UFC) (ongoing Q1 FY2020)
Nguriza Nshore helped Umutanguha prepare for a due diligence site visit and
supported the company to respond to investor requests associated with the
due diligence. The Activity also supported Umutanguha to revise its financial
models, based on investor feedback from the due diligence.
Additionally, Nguriza Nshore completed Umutanguha’s investor
memorandum and revised the company’s pitch deck.
Q1: Support during investor due diligence site visit;
Support to respond to investor requests
Q2: Continue supporting Umutanguha to revise its
financial models and business plan; Continue providing
investment readiness and deal making support
Charis UAS (ongoing Q1 FY2020)
In Q1, Nguriza Nshore began providing support to Charis UAS to
restructure the company into a group which runs subsidiaries. This support
will enhance ongoing discussions with an investor who is interested in the
manufacturing portfolio of the company.
Nguriza Nshore also reviewed Charis’ financial projections; to reflect new
economic realities due to COVID-19 and facilitated investor calls.
Q1: Began providing support to restructure Charis into
a group which runs subsidiaries; Reviewed Charis’
financial projections
Q2: Continue providing investment readiness and deal
making support
Kumwe Harvest and Transport (ongoing FY2019)
In Q1, Nguriza Nshore revised Kumwe’s financial models and updated the
company’s investment memorandum. The Activity also completed Kumwe’s
company valuation in response to feedback from investors. Additionally, the
Activity updated Kumwe’s investor map, and introduced the company to
new investors.
Q1: Revised Kumwe’s financial models; Updated
investment memorandum; Completed company
valuation; Updated investor map
Q2: Continue providing investment readiness and deal
making support
Chillington Rwanda (ongoing FY 2019) – Capital Raise TBD
Nguriza Nshore reviewed and approved Chillington’s request for technical
assistance in communications, which will begin in Q2.
Chillington also submitted two additional requests for assistance: i) technical
guidance on two term-sheets from GT Bank and Bank of Kigali and; ii)
Q1: Approved communications support request;
Received a request for technical assistance in facemask
certification
Q2: Provide communications support; Connect
Chillington to TMEA to support with the facemask
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certification of facemasks. Nguriza Nshore began reviewing both requests
and plans to connect Chillington to TMEA to support on the facemask
certification request.
certification request; Continue providing investment
readiness support
Masaka Creamery (ongoing FY2019)
In Q1, Nguriza Nshore helped Masaka Creamery to prepare for a USAID
site visit. During the site visit, guests from USAID learned about Masaka’s
business model and its social impact. The delegation also learned about
Nguriza Nshore’ support to the company, especially during COVID-19,
which helped the company survive the pandemic’s lockdown and secure
sales.
Masaka Creamery also submitted a request for technical assistance in four
areas namely legal, marketing, technical on conformity to safeguards and
standards. Nguriza Nshore reviewed these requests based on expectations
from potential investors and identified marketing and branding as an urgent
area for support as it will contribute to Masaka’s increase in sales and market
share The Activity developed and issued an RFP, and solicitors will begin
submitting bids in Q2.
Additionally, Nguriza Nshore continued providing communications support
to Masaka, especially in design and conducting a social media campaign,
further detailed under the Communications section of this report.
Q1: Helped Masaka prepare for a USAID site visit;
Reviewed Masaka’s request for technical assistance;
Issued RFP for marketing and branding support;
Provided communications support
Q2: Select BSP to provide marketing and branding
support; Handover communications tasks to Masaka’s
communications coordinator; Continue providing
investment readiness and deal making support
Agasaro Organics (ongoing Q1 FY2020)
Due to COVID-19 impact, the company is reviewing its internal systems,
business model, thus unable to respond to investor demands and thus has
put its fundraising on hold temporarily.
Q1: Support on hold
Q2: Determine whether to continue providing
investment readiness support
Biopharmacia Company Ltd (ongoing Q1 FY2020)
BioPharmacia opted to put fundraising on hold.
Q1: Fundraising on hold by the company
Q2: Determine whether to continue supporting
Biopharmacia
Munyax Eco (ongoing Q1 FY2020)
Nguriza Nshore supported Munyax to reapply for the ERF, after the first
application was rejected by the central bank due to some requirements
which Munyax did not fulfill.
Q1: Supported Munyax to reapply to the ERF
Q2: Follow up on the progress of this new application;
Continue providing investment readiness and deal
making support
easyHATCH (ongoing FY2019)
Economic Sector: Crop and animal production
Nguriza Nshore supported easyHATCH’s due diligence carried out by a
Dutch investor, which was a result of the company’s participation at the
EVPA conference in Q4 FY 2020. Following the due diligence, the Activity
also supported easyHATCH to respond to investor requests.
Nguriza Nshore also began supporting easyHATCH to update its financial
models, based on new economic developments such as COVID-19.
Additionally, the Activity also provided impact assessment measurement
support and training to easyHATCH, further detailed under the MEL section
of this report.
Q1: Supported easyHATCH’s due diligence by Dutch
investor; Support to respond to investor requests
Q2: Complete financial models; Update pitch deck and
investor memorandum; Continue providing investment
readiness and deal making support
Hollanda FairFoods (ongoing FY2019)
Hollanda FairFoods submitted a request for technical assistance for branding
and marketing support, which Nguriza Nshore began reviewing.
Q1: Began reviewing Hollanda’s request for technical
assistance
Q2: Complete review and determine support to be
provided
Water Access Rwanda (WAR) (ongoing FY20190) Water Access Rwanda
requested not to continue its investment readiness support as the SME is
currently focused on redesigning its business model and addressing its
internal demands.
Q1: Investment readiness support discontinued
Q2: No support will be provided
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GET IT Ltd (ongoing FY2019)
In Q1, Nguriza Nshore provided social impact measurement support including
data collection tools as well as staff and youth volunteers training. More details
about this support are found under the MEL section of this report.
Q1: Provided social impact measurement support
Q2: Continue providing impact measurement support;
Continue providing investment readiness and deal making
support
BeneFactors Ltd (ongoing FY2019)
Nguriza Nshore, through a Business Service Provider BSP2, continued
providing legal support to respond to investor requests; including contracts
design and assistance in negotiations with investors. The support is expected
to end in Q2.
Q1: Provided legal support
Q2: Continue providing legal support
Brioche (ongoing FY2019)
Nguriza Nshore decided not to continue providing investment readiness
support to Brioche, as the SME has been unresponsive to sharing required
documentation for investment readiness support.
Q1: Investment readiness support discontinued
Q2: No support will be provided
Kigali Farms (ongoing FY2019)
Economic Sector: Crop and animal production
Nguriza Nshore completed the hiring process of a General Manager, who
began work in Q1. The General Manager’s key focus areas include increasing
the sales/cashflows; mobilizing short/long-term financing; improving
operational systems; and marketing/entering regional markets/new areas. The
Activity also began the hiring process of a Marketing Specialist, who will
begin work in Q2.
Q1: General Manager began work
Q2: Marketing Specialist to begin work; Develop pitch
deck and investment memorandum; Revise business
plan; Continue providing investment readiness and deal
making support
IV. Deal Closure
Four SME closed an investment deal in Q1. The SMEs included Kigali Farms Ltd, Viebeg Technologies,
Pride Farms and Seeds Trust Rwanda.
SME
Post-Deal Closure Support
Viebeg Technologies
In Q1, Viebeg Technologies secured private investments. The secured
amount will help Viebeg continue to grow the company’s working capital.
Q2: Continue investment readiness and deal
making
Kigali Farms Ltd
In Q1, Kigali Farms Ltd received a grant. The grant will help the company
continue to recover from the COVID-19 crisis as well as build staff’s
capacity in various skills including business and grants management.
Q2: Continue investment readiness and deal
making
Pride Farms
BiD Network, a key Nguriza Nshore transaction advisor partner and
sub-contractor, conducted due diligence for Pride Farms – an
agribusiness company under the HortInvest Rwanda Project that secured
soft capital.
Q2: Continue investment readiness and deal
making
Seeds Trust Rwanda
BiD Network, a key Nguriza Nshore transaction advisor partner and
sub-contractor, conducted due diligence for Seeds Trust Rwanda – an
agribusiness company under the HortInvest Rwanda Project that secured
a matching grant after receiving from Seeds Trust a term sheet of the
equivalent amount in debt/equity.
Q2: Continue investment readiness and deal
making
Challenges and Mitigating Measures
Investors view equity investments in family-owned businesses as high risk. Hollanda
FairFoods, like many other family businesses, has faced numerous challenges while raising private capital.
2Liedekerke Great Lakes is one of the largest independent law firms in Belgium and is recognized for its innovative thinking and
legal expertise.
16 | RWANDA NGURIZA NSHORE | QUARTERLY REPORT: Q1 FY 2021 feedthefuture.gov
For instance, several deals could not be closed due to this organization structure- management
structure in a way that responsibilities not clear; oversights not defined; capacity issues not taken into
account- so that investors judged risky. As a result, many private investors approached are apprehensive
about the corporate governance structure of the company. In the short to medium-term, Nguriza
Nshore will support family businesses in its pipeline to secure debt financing as opposed to equity.
Virtual events limit effectiveness of SME engagement. In the wake of COVID-19, most events
went online. Nguriza Nshore has sought to support its partners to participate in online events, support
the shift of events to virtual formats and tested ways to conduct its own activities virtually when
possible. The Activity tracks SME satisfaction and experience and is aware that SMEs continue to prefer
in-person engagements or hybrid events over virtual events as a means to build relationships with
investors and others. To address this challenge, Nguriza Nshore will emphasize smaller, socially
distanced in-person events and/or convert virtual into hybrid events, to ensure maximum engagement
and participation of attendees.
Trainings and workshops are not adapted to PWD. Workshops and trainings rely on verbal
communication, which becomes a hindrance for people with a hearing disability. To ensure more
inclusive trainings and workshops, Nguriza Nshore will partner with NCPD to ensure that each training
has a sign language interpreter, ensuring that all attendees have equal opportunities for participation. For
more details see the Crosscutting Themes section.
Lessons Learned and Opportunities
Working with financial sector partners to deliver workshops helps convert learning
opportunities to investment opportunities. Rather than working only with consultants or technical
partners, Nguriza Nshore is working in partnership with financial sector partners to deliver training in
how to work with and engage the lenders and investors. For instance, Cogebanque, AMIFA, BDF and
BiD Network, Nguriza Nshore’s Transaction Advisor have presented to workshop participants on how
to access finance after which entrepreneurs were able to approach them directly. Nguriza Nshore will
continue to engage other FIs and find ways to mix learning events with matchmaking as a means to
increase access to finance for SMEs.
Nguriza Nshore’s support to SMEs is promising sustainability. Following Nguriza Nshore’s
communications support to Masaka Creamery, the company began strengthening its online presence and
marketing efforts. For instance, Masaka has a communications and marketing line under its budget, which
it did not have prior Nguriza Nshore’s support. Furthermore, the company invested in marketing, and
was featured on the front page of Rwanda’s leading online newspaper – Igihe during 2020’s festive
season. Nguriza Nshore will continue involving SMEs at all stages of technical support, thus ensuring
sustainability of its support.
PWDs are not always included in workshops and trainings. During the SME workshops that
Nguriza Nshore hosted in the Western Province PWDs noted that they are not consistently invited in
workshops and trainings, as shared through their umbrella organization, NCPD. This presents an
opportunity for Nguriza Nshore to sign an MOU with NCPD and ensure PWDs are consistently
included in future trainings and workshops that the Activity will organize. For more details see the
Crosscutting Themes section.
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COMPONENT 3: STRENGTHEN THE POLICY ENVIRONMENT FOR
SMEs AND AGRIBUSINESSES TO INCREASE PERFORMANCE AND
PROFITABILITY
In Q1, Component 3 activities contributed to the following indicators:
Number of jobs created with USG assistance (Custom)
• EG.3.1-d Number of milestones in improved institutional architecture for food security policy
achieved with USG support [IM-Level]
Q1 Achievements
• Two national and five sub-national level policy milestones were achieved
Q1 Activities and Milestones
ACTIVITY Q1 MILESTONES & Q2 ACTIVITIES
Partnership with the Business Development Fund (BDF)
With the GoR concurrence, BDF requested NN for support to manage
the $5 million Economic Recovery Fund received from the GoR for BDF
partial guarantee fund for micro-businesses and SACCO refinancing.
Other components of the request include; (i) resource mobilization for
the ERF, (ii) support BDF to develop an effective M&E framework and
(iii) provision of advisory services to BDF’s SME beneficiaries.
Q1: Completed recruitment process of Advisor to the
CEO; Completed BDF M&E Report with key
recommendations for consideration by BDF management
Q2: Submit the M&E Report to the management of BDF
and engage the new CEO on the implementation of key
recommendations; Finalize report and recommendation on
advisory services to MSMEs; Complete initial donor
landscape; Finalize Comms analysis and plan with CEO
input; Advisor to the CEO begins work; Engage MINICOM
on the scope of BDF restructuring as per the Ministry’s
additional request to Nguriza Nshore related to technical
assistance in the restructuring of BDF; Support BDF to
successfully implement the ERF; Continue to draw lessons
and insights to support other components of the BDF
request
Implementation of EDP
Ongoing support was provided to the GoR as per the MoU between
MINICOM and Nguriza Nshore.
Facilitated by Nguriza Nshore, the GoR officially launched the EDP. The
event took the form of a hybrid launch. The audience included the
Minister of Trade and Industry who was the Chairperson, the Minister of
ICT and Innovation, the Minister of Public Service and Labor, the Deputy
Governor of the National Bank of Rwanda and many senior Government
of Rwanda representatives, USAID representatives, development
partners, captains of industry, representatives of PSF and its chambers
and associations, entrepreneurs, civil society and the media.
The launch was followed by a press conference which discussed issues
around EDP implementation, innovation as well as the expected impact
of EDP
Q1: Officially launched the EDP
Q2: Conduct awareness campaigns including translating the
EDP into Kinyarwanda (expected to be complete by end of
Q2); Finalize discussions on the implementation of EDP
with MINICOM and other stakeholders/ plan on how to
start the awareness campaign and link with some activities
of the ERF
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Enhance the capacity of MINICOM to attract resources for the
implementation of the EDP
Through close collaboration with MINICOM, Nguriza Nshore engaged
partners to support activities under EDP as per the implementation and
M&E function.
In line with the EDP Business Support pillar, under implementation of the
agreement between MINICOM and the German NGO Savings Banks
Foundation International Cooperation (SBFIC), Nguriza Nshore
facilitated MINICOM to organize advanced trainings for Business
Development Advisors (BDAs) as recommended in the EDP. BDAs are
independent service providers but hired and supervised by Districts.
They report to the District Business Development Unit. BDAs are
established at every Sector/Umurenge at proximity of their potential
clients (two BDAs per Sector. BDAs were trained for ten days and the
Rwanda Institute of Cooperative, Entrepreneurship and Microfinance
(RICEM) was awarded the task to execute the trainings supervised by
SBFIC, RDB and MINICOM
Q1: Supported the training of BDAs by MINICOM
Q2: Continue to support MINICOM attract additional
resources for the implementation of EDP
Build the capacity of MINICOM to engage partners to support
policy implementation
Nguriza Nshore supported MINICOM to reengage partners that
participated in the drafting and formulation of EDP. As a result, MoUs
were signed with Business Professional Network (BPN) Rwanda and
SPARK Rwanda. Parties agreed to work together for the implementation
the EDP financing and business support pillars.
Q1: Secured partnership between MINICOM and BPN
Rwanda as well as MINICOM and SPARK Rwanda for the
implementation of EDP pillars
Q2: In furtherance of the MOU signed between MINICOM
and Inkomoko, Nguriza Nshore will sign an MoU between
Nguriza Nshore and Inkomoko to further support SMEs
and the implementation of EDP; Continue to follow up the
implementation of the signed MoUs
Build GoR capacity to conduct regular public-private stakeholder
engagements
In line with the ongoing partnership with the GoR and implementation of
the MoU components, Nguriza Nshore supported the GoR, the
Chamber of Agriculture and Livestock, and RYAF to conduct an
agribusiness pre-dialogue session in Rubavu district of the Western
Province in Q1. The pre-dialogue was co-chaired by the Director
General from MINICOM and its purpose was to ensure stakeholders
come to the dialogue session prepared with evidence-based analysis and
recommendations. After the pre-dialogue session, Nguriza Nshore
facilitated GoR and its partners to conduct the Western Province agribusiness PPD. The PPD was chaired by the Province Executive
Secretary who applauded the scope of the dialogue and the involvement
of youth, women and people with disability-owned businesses.
Due to strict Covid-19 regulations and preventive measures, the
Western Province agribusiness PPD. The attendance included all the
districts’ Vice Mayors in charge of Economic Development, officials from
the public sector and the Private Sector Federation, development
partners and entrepreneurs (youth, women and PWD).
Q1: Conducted Agribusiness PPD for the Western
Province.
Q2: Depending on COVID-19 restrictions, conduct
Agribusiness PPD sessions in the Eastern Province
Partnership with Rwanda Chamber of Women Entrepreneurs
(RCWE)
Ongoing partnership with RCWE and implementation of the MoU
components is underway. In partnership with RCWE, Nguriza Nshore
conducted an alternative financing workshop for women entrepreneurs
in the Western Provinces.
Q1: Provided a training on alternative financing to women
entrepreneurs
Q2: Finalize the SOW to support RCWE to increase digital
literacy and use digital platforms for entrepreneurial
networking and customer outreach; Collaborate with
RCWE to develop a concept note for the creation of a
Women Saving Fund and link them to other development
partners supporting women savings activities; Partner with
RCWE to increase digital literacy and use digital platforms
for entrepreneurial networking and customer outreach
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National Commission of People with Disabilities (NCPD)
Ongoing discussions with NCPD about the areas of support, MoU to be
concluded in Q2.
Partnered with the NCPD to conduct workshop on alternative sources
of financing for members of NCPD in the Western Province
Q1: Persons with disabilities entrepreneurs trained on
alternative financing
Q2: Continue to engage NCPD on the scope and
modalities of support taking into account the duration left
for the Activity to close
Partnership with Rwanda Finance Ltd (RFL)
Implementation of the MoU components is underway as part of ongoing
partnership with RFL to support Rwanda become a financial hub.
RFL requested fast tracking of financial sector business enabling
environment regulations (private equity and foundations regulations).
Following the request, the Activity advertised the RFP and a firm has
been selected to support RFL with the regulations
Q1: Advertised the RFP on the development of a financial
sector skills council and a firm has been selected to conduct
the assignment;
Q2: Support RFL with setting up a financial sector skills
council and determining the most appropriate strategy and
framework to operationalize a training levy and a skills
development fund for the local financial sector eco-system
Rwanda Youth in Agribusiness Forum (RYAF)
Ongoing partnership with the RYAF, discussions on finalizing the MoU
between NN and RYAF ongoing.
Workshop on alternative financing held with RYAF members in Rubavu
and Rusizi with RYAF members in attendance.
Q1: Provided a training on alternative financing to youth
entrepreneurs
Q2: Continue to partner with RYAF to conduct alternative
sources of financing workshops
Challenges and Mitigating Measures
Highlight Box 1: Entrepreneurship Development Policy Officially Launched
The Entrepreneurship Development Policy was officially launched by Rwanda’s Minister of Trade and Industry,
during a hybrid event with in-person and virtual attendees. This policy was developed through a collaboration
between Nguriza Nshore and the Government of Rwanda in a yearlong process, which involved multiple
stakeholders in the public and private sector as well as academia and the general population. This process
resulted in a robust policy, which was launched with high level guests including three ministers, various
country representatives of donor organizations, UN agencies and entrepreneurs. The ceremony included a
high-level panel discussion, which featured the USAID Mission Director and Rwanda’s Minister of ICT among
other panelists. In her remarks, the Minister of Trade and Industry recognized the efforts of the US
Government to support entrepreneurship in Rwanda through Nguriza Nshore: “Additionally, I would like
to recognize the efforts of the US Government, through its USAID Rwanda Nguriza Nshore
project for having funded the development of the EDP.”
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EDP launch targeted more English speakers than Kinyarwanda speakers. Conducted in
English, the EDP launch primarily targeted English speakers. While some measures were taken to direct
the communication about the EDP in Kinyarwanda such as holding the press conference in Kinyarwanda,
doing awareness shows on radio and TV in Kinyarwanda and sharing social media content in both
languages, there remains more work to be done to ensure Kinyarwanda speakers also feel ownership of
the policy. As part of its mitigation strategies, the Activity will translate the policy into Kinyarwanda
before launching the provincial awareness campaigns.
Women, youth and people with disabilities face on-going challenges in accessing
information on business requirements, skills and access to finance. These groups tend to have
fewer resources to organize or attend networking events – for sharing experiences, building business
relationships/partnerships. Equally, the members have greater need for support in managing business
operations (financial management/record keeping/business growth/financial plans) to internal running of
businesses. The Activity will continue to provide support to women entrepreneurs, youth in
agribusiness and people with disabilities at least once a quarter. To work towards sustainability beyond
the life of the project, the Activity will continue to engage the leadership of RYAF, NCPD and RCWE to
explore resource mobilization strategies and capacity building for members.
Limited number of participants for the Western Province agribusiness PPD. Due to COVID-
19 restrictions, Nguriza Nshore was directed by the Office of the Prime Minister to hold the PPD with a
maximum of 50% of the original planned participants. While this presented a challenge to select which
participants to attend, the PPD was still successful because the Activity strategically selected participants
that could represent themselves and others such as PSF district and sector presidents, and district
representatives of youth-women-PWD entrepreneurs. As COVID-19 continues to remain a challenge
for large group gatherings, the Activity intends applying the same methodology for future PPDs.
Leadership Changes at BDF slowed and may complicate assistance. BDF’s CEO resigned in
December 2020 and was replaced with an internally selected acting CEO. Several high-level positions
are now being filled by acting managers. With the identification and recruitment of a new CEO for
BDF— a former Minister of Trade and Industry — the Activity was able to move forward with finalizing
the recruitment with MINICOM’s blessing. However, a relationship with the new CEO must be
established which may lead to further delays.
Lessons Learned and Opportunities
Social Media campaign was crucial for the successful promotion of the EDP. The targeted
social media campaign used before, during, and after the EDP Launch contributed greatly to the event’s
success. The combined in-person event and social media launch created positive publicity around the
policy and more Rwandans are becoming familiar with the policy. It is now being referred to in meetings,
presentations, media, etc. this is a result of efforts put into communication. One of the lessons from the
launch is to use social media platforms when planning for Provincial EDP awareness campaigns.
There is overlap and competing interests across various projects which can only be
minimized through knowledge sharing. Without coordination and collaboration development
partners within the business enabling environment space there is a risk of duplication. The Activity has
introduced quarterly meetings with other projects to jointly collaborate on implementation of some
activities. For example, the Activity held knowledge sharing meetings with Trademark East Africa to
discuss possible and potential areas of collaboration, including: PPDs; investment readiness and sourcing
investors; support in standards development and safety certifications for relevant SMEs in the RNN
pipeline. The Activity also met with Karisimbi Business Partners and Dalberg Advisors to discuss SMEs in
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their pipeline and agreed to exchange their lists of SMEs in order to explore areas of complementing
support. The Activity also met with USAID Orora Wihaze and discussions focused on partnership in
areas of access to finance through Banks, MFIs and SACCOs operating within the same area Orora
operates.
During the policy dialogue sessions, stakeholders came up with several challenges affecting
the industry of specific value chains but lacked empirical evidence which undermines policy
dialogue. As a mitigation measure, the Activity will undertake an assessment of the challenges raised to
inform future policy dialogue sessions and anticipate the challenges that will be raised. This will help in
consensus building on the pertaining issues and facilitate more informed discussions. It will also inform
the development as well as design of a policy position paper that will enhance dialogue and advocacy to
the GoR.
CROSS CUTTING THEMES
Q1 Activities and Milestones
ACTIVITY
Q1 MILESTONES & Q2 ACTIVITIES
Women
Nguriza Nshore hosted two workshops on alternative financing in
partnership with RCWE in two districts, namely Rubavu and Rusizi. At the
workshops, women entrepreneurs attended representing SMEs and
received information about various sources of finance from Nguriza
Nshore partners such as Cogebanque, AMIFA, the Activity’s Transaction
Advisor, BiD Network and BDF.
Furthermore, Nguriza Nshore partnered with RCWE to ensure women’s
inclusion at the Western Province PPD, with 11 women participating at
the dialogue.
Additionally, in response to a request for technical assistance that RCWE
submitted, Nguriza Nshore provided support to raise awareness about
the chamber’s participation at the Rwanda International Trade Fair (Expo
2020), through a social media plan that the Activity helped develop.
Q1: Hosted two workshops on alternative
financing with women participating; women
participated at the Western Province PPD;
Provided communications support to RCWE
during Kigali International Expo
Q2: Conduct literacy training for women
entrepreneurs under RCWE; Continue partnership with RCWE; Continue intentionally including
women in trainings and workshops
Youth
Nguriza Nshore hosted two workshops on alternative financing in
partnership with RYAF in two districts, Rubavu and Rusizi, where youth
entrepreneurs participated. Although similar in content and delivery,
these workshops were organized separately from women entrepreneurs’
sessions because these categories of entrepreneurs face different
realities.
Nguriza Nshore also submitted an MOU with RYAF which the umbrella
organization has approved. The signing is scheduled in Q2.
Furthermore, seven youth participated at the Western Province PPD
organized by Nguriza Nshore in Rubavu district.
Q1: Youth entrepreneurs participated at the SME
workshops organized in partnership with RYAF;
MOU approved by RYAF
Q2: Sign MOU with RYAF; Connect youth
entrepreneurs to SACCOs and MFIs through
AMIR; Continue partnership with RYAF; Continue
including youth in trainings and workshops
Persons with Disabilities (PWD)
Nguriza Nshore partnered with NCPD to ensure the participation of
person with disabilities at the alternative financing workshops organized
with RYAF.
Q1: PWD participated at the alternative financing
workshops; Submitted MOU to NCPD
Q2: Sign MOU; Connect PWD entrepreneurs to
SACCOs and MFIs through AMIR; Continue
partnership with NCPD; Continue including PWD
in trainings and workshops
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Nguriza Nshore also held discussions with NCPD to determine the
scope of support that the Activity will provide the umbrella organization
as well as areas of partnership and developed an MOU.
MONITORING, EVALUATION & LEARNING
Q1 Activities and Milestones
During Q1, Nguriza Nshore finalized most of the external Power BI indicator dashboards after
concluding the process of restructuring the existing data model and constructing an easy to manage
model for internal and external audiences in FY 2020. Additionally, Nguriza Nshore continued to
support three SMEs to build a sustainable social impact measurement system – a prerequisite to attract
and work with social investors. Despite the COVID-19 pandemic, two of the SMEs completed data
collection and cleaning, which are vital steps in the system.
ACTIVITY Q1 MILESTONES & Q2 ACTIVITIES
SME Social Impact Measurement Technical Assistance
GET IT
During Q1, Nguriza Nshore finalized, translated, and programmed the lean
baseline tool for the GET IT chili farming project, a new initiative that will
create on farm and off-farm jobs in Rulindo District throughout the life of
the project. In addition, towards the end of Q1 when COVID-19
restrictions loosened, Nguriza Nshore trained GET IT staff and youth
volunteers on data collection so that they can start data collection with chili
farmers in Q2. Nguriza Nshore will continue to support GET IT for both the ginger and chili projects in the next Quarters. To ensure sustainability
beyond the life of the project, Nguriza Nshore provided five tablets to GET
IT that will be used during data collection in Q2 and beyond then.
easyHATCH
Nguriza Nshore social impact system development with easyHATCH
continued in Q1. easyHATCH conducted data collection with a sample of
its smallholder farmer clients. Most of the data collection took place over
the phone to avoid easyHATCH staff and clients’ exposure to the
coronavirus. In addition, during Q1, in order to build SMEs’ capacity in data
cleaning, analysis, and visualization, skills that are more advanced, Nguriza
Nshore piloted the training on those specific skills with easyHATCH with
the purpose of ensuring sustainability beyond the life of the project. In Q2,
Nguriza Nshore will continue to work with easyHATCH to finalized data
analysis and visualization so that easyHATCH can share findings with
interested investors as well as use the findings for internal decision making.
Jali Finance
During Q1, Nguriza Nshore created, translated and programmed Jali
Finance lean data collection tool. Also, Jali Finance conducted a data
collection training with their motorcycle driver clients after a training on
data collection by Nguriza Nshore. In Q2, Nguriza Nshore will continue to
support Jali Finance build a social impact measurement system by
supporting Jali Finance’s team with completing data analysis and
visualization.
Q1: Finalized, translated and programmed GET IT
chili project baseline tool, and trained GET IT staff
and youth volunteers on data collection; completed
easyHATCH data collection and data cleaning,
trained easyHATCH team in data cleaning, analysis,
and visualization; created Jali Finance lean data
collection tool, translated and programmed the
tool, data collection training, data collection and
data cleaning
Q2: Finalize GET IT chili project data collection
baseline tool and programming based on GET IT
feedback, conduct data collection with chili
farmers, data cleaning, data analysis, and
visualization; easyHATCH data analysis, and
visualization; Jali Finance data analysis and
visualization.
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Photo: GET IT staff, GET IT Youth data collectors, and Nguriza Nshore team
Conduct continuous monitoring of Nguriza Nshore activities
During Q1, Nguriza Nshore continued to conduct various monitoring
activities to ensure effective data management. Activities included data
collection, data cleaning and data reporting.
Data Collection, Cleaning and Processing
Nguriza Nshore continued to update its SME pipeline internally and from
transaction advisory firms through monthly data collection trackers.
Furthermore, the Activity collected SACCOs and MFIs data from remote
trainings by AMIR, as well as SMEs’ finance and investment data. After data collection, Nguriza Nshore ensured that collected data and supporting
documentation were well verified, cleaned and processed in Fulcrum and in
DAI’s secure Technical and Administrative Management Information System
(TAMIS) accordingly.
Data Reporting Nguriza Nshore continued to compile and discuss unaudited data during
monthly indicator reviews. These reports feed into the report to USAID on
a quarterly and annual basis.
Q1: Continued to collect data to report accurately
and on time; processed collected data in Nguriza
Nshore’s systems
Q2: Continue to collect data and report
Finalize the PowerBI Indicator Dashboard
During this quarter, Nguriza Nshore finalized working on almost all the
Activity’s PowerBI indicator dashboards to provide real-time data updates
to USAID and other external audiences. The dashboard is meant to
increase transparency of the Nguriza Nshore targets and actuals to date.
Nguriza Nshore has been developing the dashboard for the past fiscal year,
with hindrances in the technical support which mostly delayed the process
of finalizing the work. The Activity will finalize the external dashboard at the
beginning of Q2 and has made progress in developing an internal dashboard
that will automate the annual reporting into USAID’s DIS and its FTF
Module. In Q2, Nguriza Nshore will share with USAID credentials to access
the external PowerBI dashboard.
Q1: Finalized developing visualizations for Nguriza
Nshore’s six standard and custom indicators
external dashboards
Q2: Finalized remaining three external indicators
dashboards, share credentials with USAID to
access the dashboards and finalize internal Nguriza
Nshore PowerBI dashboard
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Nguriza Nshore’s Indicator 2.3: Number of firms receiving USDG-funded technical assistance for improving business performance
updated dashboard
Conduct Monthly Progress Reviews and Planning Sessions
During Q1, Nguriza Nshore staff continued to work remotely due to the
COVID-19 pandemic. The Activity continued to conduct monthly progress
reviews and planning sessions. Most of the sessions were held remotely
except one planning session that took place in-person due to loosened COVID-19 restrictions. During these sessions, the team also addresses the
learning and adaptations needed due to the COVID-19 pandemic.
Q1: Conducted remote monthly sessions and
updated the indicator progress tracking sheet
Q2: Continue to conduct remote monthly
progress and planning sessions
Completed USAID and FTF Annual Reporting
In Q1, Nguriza Nshore reported its FY 2020 annual indicator performance
results in the new USAID’s Development Information Solution (DIS).
Moreover, on October 22, 2020, Feed the Future held a webinar on their
new FTF reporting system within USAID's DIS (as opposed to the old Feed
the Future Monitoring System). Despite a number of various errors in the
DIS system, Nguriza Nshore successfully submitted FY 2020 performance
indicator results in DIS and started to adapt the Activity’s data collection
tools to reflect the USAID and FTF reporting systems that were introduced
in the webinar.
Q1: Attended webinar by Feed the Future team on
USAID’s DIS FTF module, submitted FY 2020
results both in the DIS and DIS’ FTF module
Q2: Adapt Activity’s data collection tools to reflect
the USAID and FTF reporting systems
Design Public Private Dialogue (PPD) M&E tool
Under Component 3, Nguriza Nshore facilitated public private dialogues
(PPDs). During Q1, Nguriza Nshore designed an M&E tool to help the
Activity track the immediate outputs and short and medium-term outcomes
of the PPDs. The M&E tool is intended to be used during and after the
PPDs in order to capture the issues covered and resolutions agreed on
during the dialogues and to monitor the implementation of the resolutions
post-dialogue. The tool was piloted in the most recent PPD that took place
in the Western Province from October 27-30, 2020. The information
captured in the M&E tool effectively fed into the post-PPD report. The
process will remain for the next PPDs and Nguriza Nshore will start
reporting on some of the indicators in the upcoming quarters. Depending
on the specific indicators, actuals will be reported on a quarterly bi-annual
or annual basis.
Q1: Designed the M&E tool and started using it for
reporting
Q2: Follow-up on the implementation of agreed
upon regulations by implementation institutions
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Challenges and Mitigating Measures
Transition to new reporting systems requires a significant amount of time and training.
Though the transition to the new USAID’s Development Information Solution (DIS) and its FTF Module
is a positive, Nguriza Nshore faced a significant number of bugs with the system that required a
significant number of interactions and troubleshooting sessions with the USAID and FTF support teams.
The USAID and FTF support teams did an amazing job of availing themselves for support. However, for
these kinds of systems, it would be even better for implementing partners to have a more thorough
training – i.e. more than a single session – to go through the system and its usage so that the data
reporting transition is smoother.
Lessons Learned and Opportunities
Transferring advanced skills like data analysis and data visualization necessitate time and
the right focal SME staff to ensure sustainability. As part of Nguriza Nshore’s impact
measurement support to SMEs, the Activity started with one SME to pilot training on data cleaning, data
analysis, and data visualization. It became clear that this require a certain level of skill with data
manipulation and presentation to be done properly. Nguriza Nshore has taken more than a quarter with
the SME to implement this and, in the process, developed an approach to work with SMEs in the future.
To ensure sustainability beyond the life of the project, Nguriza Nshore will work with the SME CEO to
identify one or two SME staff that are fit to perform data cleaning, analysis, and visualization after SME
data collection. After identification, these staff will be trained by Nguriza Nshore on these skills and
provided hands-on support as they collect data, analyze and present it to internal and external
audiences.
COLLABORATING, LEARNING & ADAPTING
Q1 Activities and Milestones
During Q1, Nguriza Nshore continued to work in partnership with other actors working in the finance
and investment sectors in Rwanda including USAID projects, umbrella organizations, working groups and
the GoR to continuously respond to the COVID-19 crisis as well as to synergize for the benefit of
Nguriza Nshore, those other stakeholders, and Rwanda at large. The Activity continued to learn from
the market which continued to significantly change from time to time due to the COVID-19 pandemic as
all stakeholders were trying to continuously adapt to the transformed economy and investment space.
Collaborating
Encouraging continuous external collaboration. In Q1, as a member of the Private Sector
Development of Youth Employment (PSDYE) – Sub Sector Working Group, Youth and Employment -
an existing local joint sector working group with development partners, ministries including
MINECOFIN, MINICOM and other GoR institutions such as RDB, RICA and PSF, Nguriza Nshore
participated in an online periodic meeting where members discussed achievements of different sectors’
objectives that significantly were negatively affected by the COVID-19 pandemic. Members also
discussed sectors’ budget execution and planning for 2021-2022. This is important for Nguriza Nshore
because it mainly helps the Activity have access to updated information about what is being prioritized
by the GoR especially in the finance and investment space which helps Nguriza Nshore’s work stay in
line with the GoR’s agenda.
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During this quarter, one of the Nguriza Nshore transaction advisors continued to collaborate with the
HortInvest Project to conduct due diligence on two horticulture SMEs in Rwanda. This due diligence is
at the same time assessing the applicant’s readiness to receive and manage investment and supporting
the transaction advisor to source new SME partners for Nguriza Nshore. Nguriza Nshore can then
leverage the investments received through the HortInvest
Investment and Innovation Fund in order to continue to support
these SMEs to secure future investment.
Additionally, in this quarter, Nguriza Nshore partnered with the
Orora Wihaze Activity which has a mandate to sustainably
increase the availability of, access to, and consumption of animal-
source foods (ASF) through the rearing of domestic animals
including chickens. This partnership consists of linking Nguriza
Nshore partners in poultry farming with Orora Wihaze so that
those partners can benefit from technical and financial assistance
from Orora Wihaze. So far, one Nguriza Nshore partner
(easyHATCH) was referred to the Orora Wihaze Activity to
start to work with them. Leveraging from its partnership with
AMIR and other umbrella organizations, Nguriza Nshore is planning to extend this partnership going
forward by looking into ways to support link Orora Wihaze beneficiaries to SACCOs so they can easily
access different types of financing.
Encouraging collaboration across partners. For several days during Q1, Masaka Creamery, a
Nguriza Nshore SME partner had electricity issues – a big threat to a company that depends on
electricity to keep its products cool. The CEO of Masaka Creamery had been introduced to GET IT by
Nguriza Nshore at Sankalp. Masaka Creamery approached GET IT inquiring for a space in GET IT’s cold
room while its electricity was being fixed. GET IT’s CEO generously agreed at no cost. The two
companies repeatedly recommend to each other clients and investors. In addition, the two are in
discussions with Kumwe Harvest about acquiring a larger plot together in the industrial zone
Fostering a culture of internal collaboration as the Activity teleworking becomes a custom.
Formal internal collaboration and communication remain vital as the Nguriza Nshore team teleworks.
The Activity has maintained monthly reviews and quarterly reflection and planning workshops remotely
as well as sessions to share weekly plans and reports amongst the team. The team is becoming more
adept with the range of videoconferencing software including Zoom, Microsoft Teams, and WebEx, to
ensure internal collaboration and information sharing promotion.
Learning
In Q1, Nguriza Nshore’s learning continued to center on the pandemic’s impact on Activity partners.
At the same time, it continues to explore its learning agenda. In order for Nguriza Nshore to explore its
two learning questions, the Activity started a series of blog cases with two partners on the first learning
question: “What is the difference between entrepreneurship by necessity and mission-driven
entrepreneurship?” In these rolling series, Nguriza Nshore will learn and explore the drivers of
entrepreneurship, i.e. the emerging understanding from systems thinking that not all entrepreneurs are
the same, and mentality, capability and external forces have a substantial effect on the drive of
entrepreneurs. In many developing country contexts, including Rwanda, formal jobs are limited which
pushes many people to start businesses out of necessity. These “entrepreneurs by necessity” tend to
focus more on capturing and removing cash from their business to cover family requirements; their aim
is not to grow their business, as much as ensure their family has an acceptable cash inflow. This stands in
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contrast to entrepreneurs by choice who are driven to develop a product, grow a business, and/or both
that deliver value to customers. For such entrepreneurs, capturing a margin and/or personal gain are
often sacrificed for growth in the business. The Activity will explore this distinction and implications on
the activities systemic change goals.
In the upcoming quarters, through the same kind of series of blog cases, the Activity will focus on the
exploring more to respond to the second learning question:” How does the type of investment or
financial service affect business behavior?”.
Being a business does not suffice. Value-based, employee-based and/or customer-based
businesses are more likely to grow, adapt and survive a crisis. For the two cases that Nguriza
Nshore studied in Q1, it became an evidence that growth for Masaka Creamery did not merely depend
on the company’s commercial goals but the ability to value its employees, suppliers, and customers as
they understood well that their successful business growth depended on investing in the value of those
groups of people. Continuing to operate and survive for Chillington despite the pandemic is not
something that came over night. Value-based business is the basis of Chillington’s business right from the
beginning. Chillington starts businesses that bring solutions to the Rwandan society taking into
consideration customer and distributor feedback, which enables the company to produce products that
are not only of good quality but also those that are more affordable and satisfactory in accordance with
clients’ needs. Below are detailed case studies about Masaka Creamery and Chillington Rwanda.
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MASAKA CREAMERY, A PANDEMIC, NO PROBLEM
Kigali-based Masaka Creamery was established in 2015 as a vehicle for launching a high-quality dairy creamery in Rwanda. The
company produces yogurt, fermented milk (buttermilk), cream, cheese and butter for the domestic market. The female-run
Masaka Creamery has always been committed to a double-bottom line, namely to both commercial success and providing
meaningful employment for deaf individuals as well as youth. Masaka Creamery established its brand as a reliable supplier of
various high-quality dairy products to businesses such as restaurants and hotels, most of which cater to high end customers.
This business-to-business (B2B) market segment allows Masaka Creamery to generate a healthy margin to reinvest in the
business and staff. Masaka Creamery start-up process was quick as they had a few, large clients and larger clients as opposed
to establishing a retail distribution network.
COVID-19 has had an outsized effect on the exact businesses that Masaka Creamery has targeted, especially restaurants and
hotels. Rather than reduce operations, costs and staff, Masaka Creamery chose to look for other channels. Interestingly,
Masaka Creamery took the bold step of testing a direct to customer channel, allowing retail customers to buy their products
directly. Masaka Creamery went to work learning how to leverage social media, how to segment the market in ways that
eased their transition to a direct to end-consumer channel. They brought on board marketing and branding skills that are
essential for a direct to consumer channel, and they raised their game in terms of customer service. For example, they actively
engage their customers, leaving thank you notes for customers and promoting their values as central to their business. The
transition was not easy as they also had to develop capacity in managing multi-stop delivery routes, a substantial increase in the
number of transactions, a large and growing customer base, and brand integrity (i.e., emergent customer complaints,
operational hiccups that could affect customer value, unexpected company/product memes, etc..).
Masaka Creamery has emerged out of the transition stronger. They have a growing base of repeat customers, their revenue is
even higher than before COVID-19, their brand value is increasing, and they are investing in ways that will increase their
capacity to deliver value to their staff, suppliers and customers. The Masaka Creamery story is particularly important in
demonstrating the value of entrepreneurs when they are motivated by the value they can create, as opposed to the margin they
can capture. It is through Masaka Creamery’s commitment to value that they were able to adapt in ways that led to increased
growth and increased employment.
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CHILLINGTON RWANDA, PATHWAYS FOR ADAPTATION AND GROWTH, RESPONDING TO SOCIETIES’
AND CUSTOMERS’ NEEDS
Incorporated in 1982 in Rwanda, Chillington Rwanda Ltd is a leading local manufacturer of agricultural cast iron tools (such as shovels,
pick axes, and wheelbarrows), a solid business before COVID-19. The company had demonstrated its ability to respond to local
demand signals, innovate, and provide products needed by Rwandans. Chillington Rwanda had diversified its cast iron product line to
produce custom-sized manhole covers to address the severe safety issues of uncovered manholes at construction sites and public
spaces in Rwanda. Chillington Rwanda started manufacturing wheelbarrows locally in 2011. While they are twice the price of
imported wheelbarrows, they have been able to capture around 80% of the market to date because their product is recognized for its
superior quality and durability, with the ability to customize wheels and handles. Chillington Rwanda conducts regular surveys with its
customers and distributors, including sending their team to rural villages. Based on customer feedback in late 2018, Chillington
Rwanda adapted the wheel design to better accommodate muddy terrain typical in rural Rwanda.
The emergence of the COVID-19 pandemic strained Chillington Rwanda’s business lines as overall economic activity slowed. For
Chillington Rwanda, waiting out the shock was not an option; they needed to adapt. In surveying the dynamic landscape, they saw that
Rwandans were struggling to adhere to basic public health protocols and due to the high costs of surgical face masks and other
Personal Protective Equipment (PPE). Chillington Rwanda began to go to work. They assessed the opportunity, including near,
medium- and longer-term contexts, and the cost of shifting production to this product line. Chillington Rwanda drew on their
existing expertise in manufacturing and existing relationships with production equipment suppliers in China to diversify from
producing agricultural tools and equipment to producing surgical face masks as PPE. Pre-COVID-19 demand from hospitals, clinics,
pharmacies, etc. over a period of six months for imported PPE surgical face masks in Rwanda averaged 1.5 million face masks per
month, a volume that convinced Chillington that a shift to PPE had the potential to lead to a viable business line in the long-term even
if demand were to drop post COVID-19. In addition, Chillington Rwanda took note of the demand for feminine hygiene products
(sanitary pads) which can be produced using the same manufacturing capabilities as surgical face masks—another use of the proposed
new manufacturing capability. Chillington also saw opportunities for sales across the region which further justified the investment.
As a result of COVID-19, the government is incentivizing the production of PPE face masks by local producers in a bid to facilitate
mass production as well as affordability. In April 2020, Chillington Rwanda was included in the Rwanda Food Drug Authority (FDA)
official list of companies allowed to manufacture barrier and medical masks in Rwanda, with Chillington Rwanda being one of only
three companies approved to manufacture higher quality surgical masks. With a loan from a commercial bank and grant from the
German development agency, GIZ to support in production process and purchase of raw materials, Chillington Rwanda had the
finance to fund initial production and laboratory testing, which is the first of its kind in East Africa. The Rwanda Standards Board
helped local manufacturers such as Chillington Rwanda to understand how to conform to quality standards in mask production and
Chillington Rwanda provided samples of its masks to the Quality Control Division of the Rwanda FDA for approval. Chillington
Rwanda invested in a machine from China that has the capacity to produce 2 million masks a month and started production,
distributing the masks through pharmacies throughout Rwanda. Sales have grown quickly.
In quick response to customer and distributor feedback, the company however recognized that consumers and retailers prefer masks
to be packaged in smaller numbers so that when customers take a mask from the box in the retail store there is less chance of
contamination. The company is therefore adapting its packaging to support improved health and sanitary at the retailer’s sales points
by investing in a packaging machine that is able to package in smaller units.
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COVID-19 has accelerated alternative finance and de-risking mechanisms for SMEs. Jali
Partners, an auditing and accounting firm, is a sister company of Nguriza Nshore’s partner Jali Finance.
BeneFactors, Ltd. had once been a client of Jali Partners. However, it was only after the COVID-19
pandemic struck that Jali Partners saw how BeneFactors' services could benefit their clients struggling to
maintain liquidity. Jali Partners signed a contract with BeneFactors to offer their invoice factoring
services through Jali Partners. Jali Partners shares the financing risk to their partners to offset the risk to
Benefactors and it also facilitates access to financial information on the new clients so that Benefactors
can quickly and efficiently do a risk assessment. In addition to risk sharing, this partnership has helped
BeneFactors gain more clients and Jali Partners to provide a much-needed service to their clients.
Adapting
In Q1, Nguriza Nshore continued to adapt to the COVID-19 pandemic.
Remote work is becoming a norm. The Activity’s staff continued to work from home, performing
their roles through a mixture of work from home and on-site at partners premises. In the first two
months of Q1, COVID-19 restrictions had been loosened and Nguriza Nshore conducted some of its
activities in-person including the SME workshops and the Entrepreneurship Development Policy (EDP)
launch. As Rwanda’s COVID-19 cases continued to increase and restrictions tighten, the team received
an introductory training on Mural board – a digital workspace for visual collaboration – from
EcoVentures International (EVI). The training will help the team collaborate on designing new projects
together while working remotely. The Activity will continue to remotely participate in various
investment forums, partner and investor meetings.
Over-the-phone data collection vs. in-person during the pandemic. Nguriza Nshore worked
together with SME partners including easyHATCH and Jali Finance, to conduct remote client data
collection via phone in Q1. Both were able to meet most of their data collection needs over the phone.
Nguriza Nshore is helping them design lean data collection tools to accommodate over-the-phone data.
SMEs in the non-essential sector continue to be negatively affected by the pandemic.
Businesses classified as “non-essential” have suffered the most from the pandemic-related restrictions. For
instance, AC Group – a Nguriza Nshore SME partner in the transportation sector – continued to
experience a decrease in sales, especially at the close of Q1 when Rwanda restricted public transport
vehicles to 50% capacity. This in turn has impacted the firm’s ability to attract investment. Nguriza Nshore
has adapted its support to AC Group by supporting the SME to apply to the ERF for recovery financing,
CHILLINGTON RWANDA STORY (Cont’d)
Rwanda worked with a consulting firm in 2019 on how to invest in performance management systems which incentivize a motivated,
productive and loyal team. Productivity has been linked to payments, so Chillington Rwanda pays workers more if they are able to
reach production targets. Chillington Rwanda recognizes the importance of treating workers well and ensuring good health and
hygiene procedures, which resulted in a 0% staff turnover in the same year. The company provides drinking water stations
throughout its plant and milk for workers. A sense of pride and team spirit is reinforced through aesthetically pleasing uniforms. The
factory and offices are being renovated and upgraded with new coats of paint and more natural light. As a result of COVID-19,
Chillington Rwanda implements good manufacturing practices with workers washing hands before work and keeping distance from
other workers. Their team has been split into two groups, with a night shift added to distance workers even more.
Chillington Rwanda’s commitment to customer value and its responsiveness to consumer signals provides an excellent example of
how markets can work well when market actors compete on delivering customer value. Chillington Rwanda saw an opportunity and
innovated/adapted to meet an emerging consumer demand, helping their business and the wider society be more resilient.
31 | RWANDA NGURIZA NSHORE | QUARTERLY REPORT: Q1 FY 2021 feedthefuture.gov
which AC Group has secured. Furthermore, the Activity helped AC Group to review its financial models
and other investment documentation and use these to approach new investors.
COMMUNICATIONS
Communications plays multiple functions within Nguriza Nshore. The communications team is
responsible for raising the profile of the Activity, supporting the implementation of all three components
and, more recently, providing communications support directly to its partners.
Q1 Activities and Milestones
ACTIVITY
Q1 MILESTONES & Q2 ACTIVITIES
Events
Site Visit to Masaka Creamery
Nguriza Nshore facilitated a USAID site visit at Masaka Creamery. The
Activity designed a communications plan around the site visit for Masaka,
which the SME used to promote this visit across its social media
platforms. To ensure that the over 50% of Masaka’s staff who have a
hearing disability are included during the site visit, Nguriza Nshore
involved a sign language interpreter who contributed in breaking the
communication barrier between guests and staff throughout the visit.
SME Workshops
Nguriza Nshore provided communications materials and ensured proper
USAID branding at the four-alternative financing for SMEs workshops
held in partnership with RCWE, RYAF and NCPD. The Activity also used
its Twitter channel to live-tweet the workshops, which gathered
substantial traction.
EDP Launch
Nguriza Nshore designed an amplification strategy for the EDP Launch,
which was followed by MINICOM. The strategy included an intensive
communications plan, which included both social and traditional media.
Furthermore, the strategy included a social media toolkit which
MINICOM and various partners used to promote the event, and also
included a press kit for journalists.
Using the #Rwandapreneurship hashtag on Twitter, the EDP launch gathered a significant amount of traction, reaching over 11M accounts as
seen at the analytics image below.
The #Rwandapreneurship hashtag reached over 11M accounts on Twitter
Following the event, the hashtag saw 49 posts with over 75,000
impressions. The hashtag also found usage beyond EDP; entrepreneurs
and businesses started using it during and after the launch event, which
Q1: Provided communications support to Activity
events including USAID site visit to Masaka
Creamery, SME Workshops, Agribusiness PPD,
EDP Launch and AMIR Training
Q2: Continue providing communications support
to all Activity events
32 | RWANDA NGURIZA NSHORE | QUARTERLY REPORT: Q1 FY 2021 feedthefuture.gov
testify the success of the campaign and made the hashtag relevant for
future use.
Agribusiness PPD
At the Nguriza Nshore facilitated Western province agribusiness PPD,
the Activity provided communications materials to ensure proper USAID
branding and awareness. The Activity also promoted the event on social
media and it gained a significant amount of traction.
AMIR Virtual Training
At the SACCOs and MFIs virtual training that Nguriza Nshore and AMIR
facilitated, the Activity provided communications materials to ensure
proper USAID branding and awareness. Nguriza Nshore also promoted
the event on social media and it gained a significant amount of traction.
Materials and Publications
Quarterly Newsletter
Nguriza Nshore completed and issued its second newsletter in Q1.
Media Trends Round up Report
Nguriza Nshore continued developing the weekly media trends round-up
report to share internally and with partners.
Event Checklist
Nguriza Nshore completed the Activity’s event checklist guide and will
present it for use in Q2.
Website Nguriza Nshore uploaded the EDP launch story on the website as well as
a story on the EDP development process story, which are both linked in
the newsletter.
Q1: Released quarterly newsletter; Shared weekly
media trends report; Completed event checklist
guide; Updated website
Q2: Release quarterly newsletter; Present event
checklist; Present communications strategy; Update
website
Traditional Media
In Q1, Nguriza Nshore leveraged traditional media to promote the EDP
Launch event. To enhance the organic use of Kinyarwanda, the Activity
supported MINICOM to use two broadcast programs on Rwanda
Broadcasting Agency (RBA) namely Waramutse Rwanda and News Hour.
Nguriza Nshore also live-tweeted during both programs, which helped
generate a significant amount of traction. Furthermore, on the day of the
launch event, the Activity supported a press conference which featured
two cabinet ministers as well as the Deputy Governor of the central
bank.
In addition, the launch event was featured in three written publications
namely Igihe, The New Times and Digital Times Africa.
Q1: Implemented traditional media campaign
surrounding the EDP Launch
Q2: Continue to amplify Nguriza Nshore’s work
using traditional and non-traditional media
Social Media
Nguriza Nshore continued active engagement on Twitter. The highlight traction of the quarter was before, during, and after the EDP Launch
event, as outlined under the events heading of the Communications
section of this report.
One of Nguriza Nshore’s tweet surrounding the EDP Launch event gained significant
traction: the tweet reached over 17K accounts and generated 20 profile clicks.
In Q1, Nguriza Nshore’s Twitter account reached 185.5K accounts with
93 tweets in the same period. The account also gained 94 new followers.
Q1: Engagement on Twitter: 93 tweets, 185.5K
impressions, 94 new followers
Q2: Continue amplifying Nguriza Nshore’s visibility on social media
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SME Support
Chillington
Due to COVID-19, Chillington diversified its product offering and added
a facemask production line to respond to the increasing demand of
Personal Protection Equipment (PPE). With the new products,
Chillington seeks to be the premier supplier of certified facemasks across
the region. In this regard, Chillington approached Nguriza Nshore to
support the SME in developing a communications strategy and in
providing tools and techniques to strengthen the Chillington brand
locally and regionally. Nguriza Nshore reviewed and approved this
request and will begin providing support in Q2.
Masaka Creamery
Nguriza Nshore strengthened Masaka’s online presence by designing a
social media campaign aimed at increasing the number of followers on
Instagram and raising awareness about Masaka’s products beyond its
business customers. The 10-day campaign reached over 90K accounts,
and increased Masaka’s followers from 61 to 364. Nguriza Nshore also
continued building the capacity of Masaka’s communications coordinator
in preparation of a full handover of tasks in Q2. For instance, the USAID
site visit’s communications plan was designed in partnership with
Masaka’s communications coordinator and was fully implemented by the
SME. Charis UAS Nguriza Nshore continued providing support in helping Charis implement the communications plan the Activity previously developed
for the SME. Furthermore, Nguriza Nshore began helping Charis to
design a launch plan for its new product line, which is scheduled for Q2.
The Activity also partnered with Charis to design a handover plan for
communications tasks, which will take place in Q2.
Jali Finance
Following a lesson learned by the Activity in FY 2020, Nguriza Nshore
recommended Jali Finance to identify a communications focal person on
its team, which would enhance and make more effective the support that
the Activity was providing. In this regard, Nguriza Nshore connected Jali
Finance to the RDB Internship Program, which provides professional
interns to SMEs at RDB costs. Jali’s request was submitted, and the
intern will begin work in Q2.
Q1: Developed a SOW for Chillington
communications support; Supported Masaka to
design and implement a social media campaign;
Supported Charis to implement its
communications plan; Connected Jali Finance to
RDB’s Internship Program
Q2: Provide communications support to
Chillington; Handover communications tasks to
Masaka; Finalize and support Charis UAS in
implementing the launch plan for a new product
line; Handover communications tasks to Charis
UAS; Provide communications support to Jali
Finance
ENVIRONMENTAL COMPLIANCE
During Q1, the Activity begun implementing the approved environmental mitigation and monitoring plan
(EMMP), starting with reviewing Year 4 work plan activities against the EMMP. The EMMP was updated
to reflect the Y4 workplan integrating any new or changed activities. Next steps of implementation
include finalizing the project-specific Environmental Review Form (ERF) and facilitating an environmental
compliance training on the EMMP requirements and conducting environmental reviews. Follow on
activities will be led by the Activity’s new COP and it is anticipated to commence in March 2021 and be
completed early Q3.
CONSORTIUM OVERVIEW AND STRATEGIC PARTNERSHIPS
Reserved.
OPERATIONS AND ADMINISTRATIVE ACTIVITIES
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Development of Key Deliverables for USAID
During this quarter, the following deliverables were submitted and/or approved:
Deliverable Name Submission Date Status
DEC Submission
Date
DEC URL
Rwanda Nguriza Nshore
Annual Report October 30, 2020
Approved January 15,
2021 January 18, 2021
https://dec.usaid.gov/
dec/content/Detail.as
px?vID=47&ctID=O
DVhZjk4NWQtM2Y
yMi00YjRmLTkxNjkt
ZTcxMjM2NDBmY2
Uy&rID=NTc1MzAy
Grants Management
Reserved.
Staffing
Reserved.
Financial Summary
Reserved.
ANNEXES
Annex 1: Success Stories
Success Story: Robust Communications Strategy Contributes to the Successful Launch of
the EDP
Nguriza Nshore supported the Government of Rwanda (GoR) in the development process and the
official launch of the Entrepreneurship Development Policy (EDP). One of the key areas of this support
was to develop and support the implementation of a communications overarching strategy for the
official launch of the policy. This strategy had a two-fold role: first, contribute to the overall success of
the event and second, raise awareness about the policy in the different groups it was developed for
namely entrepreneurs, business service providers, financial institutions, development partners, GoR
ministries and agencies and academia as well as the general population. The second role is particularly
important, as the policy that the EDP replaced, the SME policy, did not have a robust communications
plan and consequently very few people were aware of its existence.
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In developing a communications strategy for the
official launch of the EDP, Nguriza Nshore
ensured that all the tools are available for the
MINICOM as the leader of the event, but also
for its partners on the EDP as well as journalists
before, during and after the event. For instance,
MINICOM was provided with a content plan for
its social media including associated hashtag,
pictures and graphics, support to develop the
press release of the event and management of its
online registration platform linked to the live
streaming of the event. To ensure that the
communications’ efforts also reach the
Kinyarwanda audience, Nguriza Nshore also
supported MINICOM to appear on two Rwanda Broadcasting Agency (RBA’s) TV shows. Waramutse
Rwanda, a popular morning show, featured a representative from MINICOM and a representative from
DOT Rwanda on behalf of development partners,
who discussed the EDP and its official launch in 30-
min slot. Additionally, MINICOM was featured in
RBA’s prime time News Hour, where it also
discussed the EDP. Nguriza Nshore also developed a
social media kit for MINICOM’s partners, which
provided them with sample tweets and graphics to
use on their social media platforms. The Activity also
developed a press kit for journalists which included
the press release, as well as key facts about the EDP
as well as graphics and images to ensure graphical
consistency across all partners and channels.
Overall, the communications strategy was
successful in creating traction around the EDP as a policy and its launch as an event. The Activity-
managed event hashtag, #Rwandapreneurship, reached over 11M Twitter accounts, and it was quickly
adopted beyond the event by entrepreneurs and business, which proves the hashtag will be leveraged
for future messaging. In addition, over 500 tweets were generated for the launch with over 2,000
engagements and over 3,000 landing pages views. The timely availability of quality pictures and video
clips also contributed in creating a significant traction about the event, as posts with quality graphics
generate more interest from viewers. Furthermore, including TV was also a key contributor to the
success of this strategy, as it allowed the organic use of Kinyarwanda, reaching an additional
entrepreneur type. Nguriza Nshore looks forward to utilizing these lessons learned in other events and
transferring this knowledge to its partners both GoR and private sector.
Success Story: Engaging market actors to increase access to financing for women, youth
and persons with disabilities entrepreneurs
Nguriza Nshore organized SME workshops on alternative financing in Rubavu and Rusizi districts,
targeting women entrepreneurs in partnership with Rwanda Chamber of Women Entrepreneurs
(RCWE), youth entrepreneurs in partnership with Rwanda Youth in Agriculture Forum (RYAF) and
person with disabilities (PWD) entrepreneurs in partnership with National Council of Persons with
Nguriza Nshore developed several graphics to be used by MINICOM
as well as partners before, during and after the EDP Launch.
The EDP was featured in RBA’s morning show, Waramutse Rwanda.
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Disabilities (NCPD). These workshops featured other Nguriza Nshore partners namely Cogebanque,
AMIFA Rwanda, BiD Network and BDF, who gave presentations and facilitated sessions. The workshops
were also an opportunity for participants to learn about financing opportunities offered by various
actors in the ecosystem.
During these workshops, participants learned
about various financing options. For instance, a
representative from NCPD emphasized the
importance of sharing information about
private equity, debt and BDF support to PWD
entrepreneurs: “Our biggest challenge as
PWDs is that our level of education is still low,
so [our participation] during this workshop
was very important because the experts who
presented on the various financing options
opened our eyes”. Other entrepreneurs
learned about requirements of a loan
application: “I got to know what banks like
Cogebanque ask before they can give you a
loan, which I didn’t know before coming here”.
Overall, the SME workshops on alternative financing were successful. They were organized differently
from previous workshops as it was the first time that Nguriza Nshore engaged financial institutions and
a guarantee fund to deliver these workshops. This proved to be an efficient strategy as it enabled
participants to receive firsthand information regarding various ways to access finance, either debt or
private equity. Furthermore, these market actors also learned about realities of women, youth and
PWDs in business and how they can better serve them. By engaging market actors in the access to
finance ecosystem, Nguriza Nshore aims at sending signals to other actors to create products which are
inclusive for women, youth and PWDs in business.
Representative from Cogebanque facilitating a session
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Annex 2: Rwanda Nguriza Nshore Performance Indicators
The following table includes actuals against targets as well as disaggregation for each Nguriza Nshore performance indicator. Indicator 2.3, the only indicator that is
reported on a quarterly basis, has been updated to show the progress made in the first quarter of FY 2021. All updated actuals will be reported in the annual report at
the end of this Fiscal Year.
Indicator Reporting
frequency
Activity
IR Quarterly Progress
Annual
Target
Percent
Achieved FY21 Life of Activity Target
FY21Q1 FY21 % Value
1. EG.3.2-27 Value of agriculture-related
financing accessed as a result of USG
assistance [IM-Level]
Bi-annual Goal - - 26% -
2. Number of jobs created with USG
assistance (Custom) Bi-annual Goal - - % -
3. EG.3.1-14 Value of new USG
commitments and private sector
investment leveraged by the USG to
support food security and nutrition [IM-
Level]
Bi-annual Goal - - 8% -
1.1 Value of loans leveraged using de-
risking tools (Custom) Bi-annual IR 1
- - 6% -
1.2 Number of financial and non-
financial institutions receiving USG
assistance that extended loans and other
financial products to SMEs (Custom)
Bi-annual IR 1 - - % -
2.1 EG.3.2-26 Value of annual sales of
firms and farms receiving USG
assistance [IM-Level]
Annual IR 2 - - % + 10% increase over 2021
annual sales value
2.2 Percentage of firms receiving direct
support by the Activity that report being
able to recruit more labor as a result of
investment (Custom)
Annual IR 2 - 53.5% % + 10% increase over baseline
value
2.3 Number of firms receiving USG-
funded technical assistance for
improving business performance
(Custom)
Quarterly IR 2
151
Firm Size
Micro Enterprise (0-3 employees): 69
Small Enterprise (4-30 employees): 78
Medium Enterprise (31-100 employees): 3 Large Enterprise (101+ employees): 1
- 101% -
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3.1 EG.3.1-d Number of milestones in
improved institutional architecture for
food security policy achieved with USG
support [Multi-Level]
Annual IR 3
7
Milestone Level
National: 2
Sub-National: 5
Policy Element
3. Inclusivity and stakeholder consultation: 5
5. Policy implementation: 2
- 39% -
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Annex 3: Nguriza Nshore Partner Selection
Financial institutions—banks/NBFIs—will be given an equal opportunity to partner with and receive
support from Nguriza Nshore if they can demonstrate:
• The needs outlined in their concept note contribute to Nguriza Nshore performance outputs and
targets
• The approach and objectives outlined in their concept note have broad institutional approval (Board
of Directors, CEO and senior management)
• The approach and outputs included in the concept note offer the opportunity for scale or industry-
wide replication
• Interest and willingness to work with Nguriza Nshore consortium partners to reach Nguriza
Nshore goals
• Willingness to provide output data resulting from Nguriza Nshore support (MEL information)
SMEs will be given the equal opportunity to partner with Nguriza Nshore and receive support if they
can demonstrate:
• How supporting their business will contribute to Nguriza Nshore performance outputs and targets
• Their linkage, directly or indirectly to agriculture and agriculture support value-chains
• They are a growing business—not a concept or a start-up—with a proven and established client
base
• Their financing needs have outstripped their personal financial resources (savings, family and friends)
and/or they have outgrown traditional or conventional commercial debt sources
• Three-years of financial statements (preferably audited)
• Interest and willingness to work with Nguriza Nshore consortium partners to reach Nguriza
Nshore goals
• Willingness to provide output data resulting from Nguriza Nshore support (MEL information)
Government institutions will be given the equal opportunity to partner with Nguriza Nshore should
their policy reform priority intersect with and support Nguriza Nshore goals and lead to systemic
improvements throughout the business enabling environment for off-farm SMEs.
Collaboration and Co-Creation
Collaboration and the process of co-design will be utilized to create financial products and/or services
for SMEs, facilitate private capital for SMEs, provide targeted support necessary to improve the
operational capacity and business profitability of SMEs and improve the policy and regulatory
environment for SMEs. Nguriza Nshore will not apply a “one size fits all” support package to SMEs;
rather each will be designed with the partner based on the partners needs and the services procured
through a rigorous, transparent and competitive process that includes the appropriate mix of
local/regional/International service providers and consultants.
For partners accepted into the pipeline, Nguriza Nshore will begin with a concept note provided by the
potential partner which will be used to identify their unique needs and challenges. The concept note will
go through a series of revisions during initial discussions between the partner and Nguriza Nshore. The
concept note will be expanded into a scope of work, a memorandum of understanding and a non-
disclosure agreement (NDA). The scope of work will detail responsibilities expected from both parties,
including partner data and information reporting requirements. It will also outline the technical
40 | RWANDA NGURIZA NSHORE | QUARTERLY REPORT: Q1 FY 2021 feedthefuture.gov
assistance requirements that will inform an RFP if necessitated. Once signed, both parties will then move
onto the next stage of advisory and investment readiness support, depending on whether the partner is
a FI, SME or GoR agency.
Investment Readiness and Advisory Services
Using the expertise of business service providers, Nguriza Nshore will provide SMEs with investment
readiness support. These services will include, but are not limited to:
• Business plan development support
• Financial modelling/projections
• Investment plan preparation
• Pitch deck and marketing materials
• Workshops and trainings on business pitching
• Investor mapping
• Linkages to potential investors
• Monitoring and evaluation framework design and support
• Financial, HR, communications support, etc.
Nguriza Nshore will provide FIs, SMEs and GoR agencies with advisory services through
local/regional/international experts and business support providers. For FIs and SMEs, Nguriza Nshore’s
approach is centered on the delivery of advisory services, intended to provide hands-on support to
increase the availability of finance, and it will focus on strategy first, then in order: asset allocation,
structures, systems, skills and then, products, implementation and finance/investment. Activities
underway and completed will be communicated to other market actors and increase their awareness of
Nguriza Nshore successes through appropriate media channels.
With the GoR, Nguriza Nshore will be more selective because policy reform generally requires longer
time horizons for outcome realization. Nguriza Nshore support will focus on:
• Technical assistance to address constraints and capacity gaps
• Strategy, asset allocation, structures, systems and skills
• Product design and implementation
• Targeted trainings on products, loan application analysis, etc.
• Process enhancement and improving internal efficiencies
• Market studies and assessments
• Policy research, design and implementation
FI Support, SME Deal Making and GoR Policy Implementation
Through local/regional/international business service providers and consultants, the Activity will support
FIs as they roll out new financial products. Based on partner performance, Nguriza Nshore will
determine whether to provide on-going or additional support. Nguriza Nshore will track lending, other
forms of financing and additional information provided by the FI as a result of USG assistance.
Nguriza Nshore will support SMEs during and after investment deal closing. Depending on evolving SME
needs, additional technical assistance may be provided in order to leverage further investment.
Nguriza Nshore will support the GoR beyond policy design and the Activity will provide the government
with technical assistance and monitoring/reporting during policy implementation. Nguriza Nshore will
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assist partners, when needed, to prepare lessons learned, monitor outcomes, and adaptation as ongoing
or new assistance is sought.
Annex 4: Nguriza Nshore Market Systems Theory of Change
COMPONENT 1: EXPAND THE CAPACITY OF FIs AND NBFIs TO FINANCE SMEs
AND AGRIBUSINESSES
Current Market System Context
• The commercial banking sector serves medium to large established businesses, larger NBFIs and the
government of Rwanda, with limited focus on retail banking products, such tailored loans and
diversified savings instruments.
• Financial flows are intermediate by banks from depositors to medium to large established businesses
(corporates) and the GoR, which hinders inclusive growth and concentrates capital and wealth. .
• Large banks compete for medium to large established businesses and the GoR, saturating the
corporate lending market and concentrating credit risk, forcing medium and small banks to innovate
and work down market.
• NBFIs, including MFIs and SACCOs, are more willing to innovate and assume risk of the underserved
markets, but they are less capitalized than banks, which limits their outreach. Still, their successes in
low-end market segments could lead banks to replicate their products and services after successful
demonstration is established.
• MFIs and SACCOs, are moving toward commercial viability and remain narrowly focused on a few
products that do not meet the needs of rural-based households and enterprises.
• Insurance products are limited with low market penetration, particularly among low income families
and individuals and customers in rural communities.
Future Market System Change
• Shift competitive landscape3, to pull banks and NBFIs toward client-oriented growth.
• Promote top-down change (i.e., move banks and NBFIs down market to SME) through technical
assistance to undertake assessment of value-chain risks, potentials and design client-oriented growth
strategies combined with competitive pressures, help by incentivizing banks and NBFIs to constantly
seek new and emerging market segments, including bottom-of-the-pyramid.
• Encourage banks and NBFIs to compete for bottom-of-the-pyramid clientele via a full range of tailored
products targeting SMEs, entrepreneurs, and rural households that include both savings and lending-
based products.
COMPONENT 2: INCREASE PRIVATE AND COMMERCIAL INVESTMENT INTO SMES
AND AGRIBUSINESSES
For a fully functional, vibrant and diverse private capital ecosystem to emerge, three critically important
processes must exist.
3 Competitive pressure is defined in terms of its effect on a firm's incentives to undertake product and process innovations
for new products to introduce into the market (which tends to lead to inclusivity and more value add) or, in contrast, to attack
or hurt a competitor to gain advantage (which tends to be more extractive / rent-seeking and leads to concentration of wealth).
Competitive pressure drives firms to cooperate or compete to add value and limit rent seeking or extractive behavior.
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• A system to identify high potential start-ups and growth-oriented SMEs and the ability to filter them
into an investment-ready transaction pipeline.
• An ecosystem of high-quality transaction advisors and consultants able to assist, for a fee, these start-
ups and SMEs to become investment ready.
• Investors, preferably based in Rwanda, offering a range of investment options linked to investment-
ready companies.
Investors have substantial liquidity and aggressively seek opportunities, but they struggle to identify
businesses that are transparent and growth oriented. To meet investor requirements, Nguriza Nshore
will address systemic challenges that have limited SME identification, qualification and investment readiness.
To catalyze systemic change, Nguriza Nshore has started and will continue to seek the services of more
diverse and qualified transaction advisors and consultants. Parallel to this effort, Nguriza Nshore will
support the emergence of entrepreneurial networks, incubators, accelerators, match-makers, etc. Nguriza
Nshore will support new models committed to transparently and effectively provide critical support
services to entrepreneurs, start-ups and growth-oriented businesses. The Activity will also build linkages
with investors, and their industry groups/associations, to increase the awareness of Rwanda as a prime
investment location (to locate offices) and make investments.
Current Market System Context
• The private capital ecosystem is immature—zero debt/equity funds/investors located in Rwanda, few
investment banking options, a small and struggling capital market system, etc.
• Business are “generally” not structured to move beyond debt:
− Strong cultural biases for businesses to capture cash, as opposed to building wealth and
value—which has led to a disinterest in growth and, as a result, general apathy toward equity
investment.
− This cultural bias results in unsustainable concentrations of wealth and power as the powerful
and connected have the greatest capacity to capture margins.
− An overall unwillingness to partner and share information with outsiders (non-Rwandans),
including outside investors who offer growth capital and business management expertise.
− Companies have traditionally received grants and struggle to make the transition to private
capital investment—resulting in risk aversion which stifles business and GDP growth.
• Lack of viable exit options for investors (e.g. initial public offerings), stifling the emergence of private
capital and investment banking offerings/products and further limiting inclusive growth.
Future Market System Change
• Shift the competitive landscape to favor agribusinesses and related SMEs committed to client value-
add-oriented growth strategies including businesses focused on mass markets/bottom-of-the-pyramid
customer segments.
• Shift the balance of larger start-up and growth capital services away from bank and microfinance and
toward risk-sharing/private capital mechanisms.
• Support the emergence of tailored risk mitigating investment mechanisms, such as royalty-based
finance (revenue sharing), blended finance leveraging donor grant to de-risk commercial investment,
convertible notes, etc.
• Facilitate more robust exit options, including linkages to larger capital markets (Kenya, South Africa),
private placement services/match-makers and mergers/acquisitions.
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COMPONENT 3: STRENGTHEN THE POLICY ENVIRONMENT FOR SMES AND
AGRIBUSINESSES TO INCREASE BUSINESS PERFORMANCE AND PROFITABILITY
The workplan has reframed its policy process under a methodology via its functional cycle:
Policy development→ policy translation into laws→ public education→
implementation of laws→ monitoring
Using the EDP policy development process as a successful model, the Activity will replicate its approach
when involved in other policy reform efforts.
Current Market System Context
• The political system, in support of the entrepreneurial ecosystem, demonstrates a real intent to
improve the enabling environment, but at the same time, it’s organized around a highly concentrated
power node (the government) which generally is not participatory and inclusive of citizen
involvement in policy development, enforcement and oversight. This reality allows for decisive and
unilateral action from the top but it also results in increased fragility and a propensity to drive
narrowly defined, top-down decision making, idea generation and an exclusive policy development
process. It often involves external consultants unfamiliar with the Rwandan context and it
(sometime) creates a lack of government ownership during implementation. (As an outlier, the
development of the EDP policy process was participatory and constituent driven.)
• As a result, there are specific technical fixes and systemic challenges that need to be addressed for
inclusive growth to be properly supported/catalyzed over a long period of time by focusing on
inclusive policy development, implementation, enforcement and oversight—and government
ownership and accountability
• By assessing the policy development process via its functional cycle (see the graphic above),
underlying systemic limitations and biases can be clarified, especially within the context of how
they’re unlikely to support inclusive growth since it directly impacts the lives, livelihoods and
resiliency of ordinary citizens, to wit:
− Policy development is not driven by objective and evidence-driven participatory development
processes. The policy development process is top-down and expert-driven where a single
expert or small group of experts, often paid by a donor, write idealized policies. The result is
that policies do not align with the current political economy and cultural/economic contexts
making most policies ineffectively implemented.
− Policy translation into laws, regulations and enforcement protocols is not effectively
transparent, professional and open to influence/counterbalance (i.e. especially if the translation
seems to be hijacked) from stakeholders (often the government itself). Therefore laws,
regulations, and enforcement protocols can be influenced to misalign stated policy objectives
and implementation.
− Public education on laws, regulations and rights/responsibilities is ineffective and results in low
levels of clarity and awareness among the population. Thus, market actors and key
constituencies are uninformed about laws, regulations and their rights, which also misaligns
expectations and pushes entrepreneurs and businesses toward informality (tax avoidance).
− Implementation of laws, regulations and enforcement practices rarely align with policy
objectives. Since the expert-crafted policies are not effectively aligned with the local context and
what citizens need and expect of government, it’s highly unlikely that policy objectives can be
achieved.
− Monitoring, if conducted, is primarily done as an in-house activity of the government in Kigali.
While the government strives to conduct effective monitoring, they are unable to fully
44 | RWANDA NGURIZA NSHORE | QUARTERLY REPORT: Q1 FY 2021 feedthefuture.gov
understand and capture the various perspectives of stakeholders affected by a policy because
reports are prepared outside Kigali and submitted to Kigali without the participation of relevant
stakeholders and citizens. The result is that they are unintentionally devaluing or actively limiting
effective monitoring, as well as not gathering enough insights and perspectives to guide effective
adaptation and policy improvements.
Future Political System Change
• The political system must become more constituent-oriented and participatory—i.e. the policy
development process must add value for its constituents and it must have the flexibility to adapt
overtime based on changing local realities. Specific functional changes must include:
− Policy development must reinforce drivers/incentives that make the function objective-
oriented by seeking feedback from key constituencies and stakeholders where the government
is directly involved in the process without outsourcing support to external experts.
− Policy translation must decipher policies into laws and regulations in a transparent,
professional and open manner, not driven in a top-down process from Kigali. The process must
be open to influence/counterbalance (i.e. especially if the translation process is hijacked) to
ensure vested interests align with the translation process and the needs of the Rwandan people
the policies seek to support.
− Public education: More inclusive systems have standard protocols (regular constituent town
halls, open discussion forums, etc.) to inform and/or provide access to relevant government
work products, including: draft rules, regulations and policies; analysis reports; enforcement
practices; etc.
− Implementation must sufficiently invest to understand and create incentives so that
enforcement practices result in outcomes that align as closely as possible with policy objectives.
Inclusive systems engage/empower stakeholders (constituents, citizens) during this process to
adequately support and reinforce fair and transparent application/enforcement practices.
− Monitoring must be performed by a diverse set of stakeholders. All levels of government, civil
society, media houses research firms, NGOS, academia and so on must engage in and be
empowered to observe, track and assess the alignment/effectiveness of policy
implementation/enforcement. Within the government, counterbalancing structures and an
independent feedback/complaint process must be created and accessible for all Rwandans
throughout the country (already started in several areas, such as the consumer protection
agency). The monitoring process must include strong advocacy capacity and it must be primarily
delivered by stakeholders since it’s often during poor or misguided implementation/enforcement
that market actors (citizens, businesses, NGOs, etc.) are most negatively affected. It’s critical
that this function smoothly leads back into the participatory policy development function.
− Support services, including civil society, must be funded locally, and constituent driven, and
moved from a reliance on donor grants and charitable donations from outside Rwanda.
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