RWANDA NGURIZA NSHORE QUARTERLY REPORT FY ...QUARTERLY REPORT FY 2021: QUARTER 1 October 1 – December 30, 2021 Project Period of Performance: April 24, 2018 – April 23, 2023 Group

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



CROSS CUTTING THEMES ........................................................................................................................................ 21


MONITORING, EVALUATION & LEARNING ...................................................................................................... 22




COLLABORATING, LEARNING & ADAPTING ................................................................................................... 25


Collaborating ................................................................................................................................................................ 25

Learning ......................................................................................................................................................................... 26

Adapting......................................................................................................................................................................... 30

COMMUNICATIONS .................................................................................................................................................... 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

ii | RWANDA NGURIZA NSHORE | QUARTERLY REPORT: Q1 FY 2021 feedthefuture.gov

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

3 | RWANDA NGURIZA NSHORE | QUARTERLY REPORT: Q1 FY 2021 feedthefuture.gov

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.


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


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:


• 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.


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


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.


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)


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


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


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


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


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


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


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


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


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



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


making support


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


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


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


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


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


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


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


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


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



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


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.


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.


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.


making


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.


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.


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


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


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


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


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.”


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.


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


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


ACTIVITY


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


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


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.


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


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



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.


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


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.


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


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.


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.


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.


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.


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.


ACTIVITY


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


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

Twitter

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

https://igihe.com/amakuru/u-rwanda/article/hatangijwe-politike-igamije-kunganira-ba-rwiyemezamirimo-no-kubafasha-kunoza

https://www.newtimes.co.rw/news/new-policy-boost-entrepreneurship

https://www.digitaltimes.africa/rwanda-replaces-sme-policy-in-a-bid-to-promote-entrepreneurship/


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


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.

https://dec.usaid.gov/dec/content/Detail.aspx?vID=47&ctID=ODVhZjk4NWQtM2YyMi00YjRmLTkxNjktZTcxMjM2NDBmY2Uy&rID=NTc1MzAy








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.


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


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% -


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% -


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


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


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.


• 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.


• 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.


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.


• 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


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.

RWANDA NGURIZA NSHORE QUARTERLY REPORT FY ...QUARTERLY REPORT FY 2021: QUARTER 1 October 1 – December 30, 2021 Project Period of Performance: April 24, 2018 – April 23, 2023 Group

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