SMEs will get a grace period of up to 24 months while they stabilise and expand.
The Rwanda Social Security Board (RSSB), in partnership with Enko Capital, on April 27 announced the first round of the Rwanda SME Growth Fund with a $30 million commitment, targeting a final size of $100 million.
The Fund is designed to provide long-term, flexible financing in local currency to small and medium-sized enterprises (SMEs), addressing a major financing gap where businesses often face high collateral requirements and limited access to growth capital.
RSSB is the institutional anchor investor in the Fund.
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It is managed by Enko Capital through its Rwanda subsidiary. The firm oversees $1.7 billion in assets under management and brings 17 years of SME investment experience across Africa, with a track record in structured financing, private equity, and support for growth-stage businesses.
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Beyond capital, the Fund provides targeted business support through a $3 million Technical Assistance (TA) facility backed by RSSB. This facility offers non-financial support to help SMEs strengthen corporate governance, improve financial management, and enhance product development and diversification.
It is designed to support businesses both before and after investment, ensuring they are better prepared to absorb funding and scale effectively.
The Fund offers more flexible and longer-term financing than typical commercial bank loans. While most local bank loans in Rwanda run for about one to three years, the Fund provides repayment periods of five to 10 years, giving businesses more time to grow before fully repaying the investment, according to its management.
It also offers grace periods of up to 24 months, allowing companies to delay principal repayments while they stabilise and expand.
Who qualifies for funding?
To access financing, businesses must meet specific eligibility criteria:
Be an established Rwandan SME
A business must be registered in Rwanda, have at least three years of operations, and demonstrate proven revenue and commercial traction (consistent sales and market demand).
Show strong financial performance
Eligible companies should have at least three years of positive EBITDA (earnings before interest, taxes, depreciation, and amortisation), ideally above Rwf300 million.
In addition, the debt-to-EBITDA ratio should be below 3x, meaning total debt should not exceed three times annual EBITDA, an indicator of manageable debt levels.
For example, a business with EBITDA of Rwf300 million should have total debt below Rwf900 million.
Be beyond early stage
The Fund targets growth-stage businesses. Startups and pre-revenue companies are not eligible, as the model requires firms with established cash flows.
Fit within priority sectors
About 80 per cent of the Fund will be allocated to four priority sectors: agro-processing, manufacturing, infrastructure (including logistics and warehousing), and energy (including renewables).
The remaining 20 per cent will go to other high-growth sectors such as tourism, healthcare, telecom, and financial services.
Ticket size and investment range
Businesses must be able to absorb investments ranging from Rwf1 billion to Rwf7.5 billion per transaction, with the possibility of reaching up to Rwf15 billion through co-investment.
Funding is typically disbursed in tranches--released in phases based on agreed performance milestones and financing needs, according to Enko Capital.
What type of financing is offered?
The Fund primarily provides debt financing with flexible, growth-oriented structures.
It offers both secured debt (backed by assets such as property or equipment) and unsecured debt (based on a company's cash flow rather than collateral).
The structure may also include convertible features, allowing a loan to be converted into equity under certain conditions, as well as selective equity participation in high-potential businesses with clear exit plans.
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In some cases, financing may include embedded upside mechanisms such as warrants or equity kickers--rights that allow investors to benefit if the company's value increases over time.
What makes a business attractive to the Fund?
Beyond meeting the minimum criteria, the Fund evaluates the overall strength and growth potential of a business.
Strong candidates typically demonstrate a consistent track record of delivering on business plans and contracts, along with predictable cash flows to service debt.
Good governance and transparency are essential, including a willingness to adopt proper reporting, audits, and board oversight.
The quality of the management team is also critical, particularly its experience and clarity of growth strategy.
The Fund prioritises businesses with a competitive market position and a clear path to scale, including the potential to double or triple revenue within five years.
Alignment with ESG (environmental, social, and governance) principles is another key consideration, alongside strong financial discipline supported by audited accounts and internal controls.
