15 May 2019

Rwanda: Govt Seeks to Create 235,000 New Jobs

The government is targeting to create 235,525 extra jobs in the next fiscal year, the Ministry of Public Service and Labour told parliament on Monday, as it defended its annual plan.

Officials from the ministry and its affiliated institutions met the Parliamentary Standing Committee on National Budget and Patrimony to discuss their budget for the 2019/2020 fiscal year.

According to the breakdown, some 197,495 job opportunities are expected to be created by the districts while 38,030 jobs will be generated under the interventions of National Employment Programme (NEP).

The commitment is in line with the first phase of the National Strategy for Transformation (NST 1), which targets create 1.5 million decent and productive jobs by 2024 or an average of 214,000 jobs annually.

About Rwf8.1 billion has been allocated towards the creation of the 38,030 jobs under NEP.

The money is expected to be spent on skills development as well as supporting people including young graduates, to access finance through Business Development Fund (BDF) guarantee scheme, according to Agaba Gilbert, Labour Market Analyst at Rwanda Development Board (RDB), which oversees the implementation of NEP.

Rapid response training, which was allocated over Rwf1 billion, is projected to benefit 2,716 people in the next year, according to Agaba.

This type of programme generates more direct jobs as it is training for jobs, where it is mandatory for companies to retain at least 70 per cent of the trainees as employees, information from NEP indicates.

"The training equips youths and women with hands-on skills needed on the job market. The government works with the private sector, new investors and existing companies that need workers while the available workforce does not have the required skills," Agaba observed.

Other interventions

An estimated 300 people will benefit from what is known as industrial based training, while 3,925 will benefit from massive vocational training.

According to officials, reconversion training, which constitutes helping graduates who studied courses at university but have no job opportunities get employable skills, will profit 300 university graduates.

Internship program is expected to support 2,950 people, and it has been realised that up to 58 percent of those who complete the internship get employed.

Some 400 Integrated Community Processing Centers (ICPCs/ Udukiriro) operators and Small and Medium Enterprises (MESs) will be supported to acquire equipment through leasing scheme. A funding of Rwf1.3 billion was allocated to this activity.

In addition, 3,000 TVET graduates will get star-up toolkit loan facility, Agaba said, explaining that each toolkit can create between two and three jobs. Some Rwf550 million was earmarked for that support.

In addition, 90 agribusiness projects for Higher Leaning Institutions (HLIs) graduates will receive funding of up to Rwf10 millions of which 20 per cent will be grant, and 80 percent loan charged at an interest rate of 11 per cent interest rate.

The total funding assigned to this intervention is Rwf510 million.

"The facility is given to young graduates especially those who completed internship especially out of the country [like] in Israel and have promising agribusiness projects but which have funding gap," Agaba said.

Gaspard Musonera, the Permanent Secretary at the ministry said such backing through BDF is given to youths in cooperative who have promising projects when they have small collateral consisting of about 10 percent of the project investment.

"This action is intended to support job creation in agribusiness because we realised that there is a huge potential in that sector.

About 2000 micro, small or medium entreprise (MSME) will be facilitated to access finance through BDF guarantee scheme. On average 3 jobs will be generated by each MSME that will be supported, NEP says.

It adds that some 6000 jobs for youth are set to be created from Youth Eco brigade Program for protection of the Nyabarongo River Valley, whereby they will be facilitated to get tree seedlings to plant along the River.

MP Georgette Rutayisire said that efforts to create jobs should be well financed.

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