Village Enterprise, a nonprofit seeking to end extreme poverty in rural Africa through entrepreneurship and innovation, has received a $1.3 million grant to help break the cycle of extreme poverty in Rwanda and help people become more resilient to climate change.
The funds from the Fund for Innovation in Development (FID), an independent body hosted by the Agence Française de Développement (AFD) will be used to co-finance Village Enterprise’s partnership with the Government of Rwanda to provide critical training, startup cash, and business mentoring to people living in extreme poverty to help them set up their own businesses.
In a statement seen by TechMoran, Dianne Calvi, CEO and President of Village Enterprise, said: “Village Enterprise is excited to continue our collaboration with the Government of Rwanda and empower households to put an end to extreme poverty through entrepreneurship thanks to the co-financing from the Fund for Innovation in Development and USAID’s Development Innovation Ventures. It’s by uniting efforts and taking collective action to scale proven innovative solutions with governments that we can sustainably and effectively end extreme poverty.”
Around 4.8 million people in Rwanda live in extreme poverty, and the Rwandan government has committed to eliminating poverty by 2030. Village Enterprise will work alongside the Government of Rwanda, training government parasocial workers and sharing best practices on how to be successful mentors to first-time entrepreneurs. The two aim to catalyze an additional $22 million in funding to help reach an additional 125,000 households by 2027.
“We enthusiastically welcome the grant extended to Village Enterprise, signifying another momentous stride in our collective efforts to eradicate extreme poverty in Rwanda. This partnership is empowering thousands of households to establish sustainable businesses, playing a pivotal role in our pursuit to eliminate poverty by 2030,” said Claudine Nyinawagaga, Director General of the Local Administrative Entities Development Agency.
Village Enterprise and the Government of Rwanda will support over 31,000 households to set up, launch, and run their own businesses. These businesses will range from clothing and produce retail, to hairdressers and bicycle repair enterprises. The project has already trained 7,680 households to become entrepreneurs to date.