Based
on recent figures from the Ministry of Finance and Economic Planning, Rwanda
has started to reap from its long and strategic investment and incentives it
has and still committing to the ICT sector to make it a source of economic
growth.
According to the latest statistics released by
the Ministry, the local economy recorded an impressive growth of 8.2%, 2
percent above the experts’ predicted one of 6.2%. However, the source of growth
was not the traditional sectors but rather the ICT sector which experienced a
35% growth.
Comparing
the data, this year ICT overtook Tourism and Hospitality as the leading services
driver sector.
But
unlike the Tourism and Hospitality industry where the opportunities and
benefits that come with the expansion and development of the sector are
somewhat extent evenly distributed, the ICT sector is quite different.
The
scattered location nature of National Parks has been the magnet behind the
proliferation of private investments in districts that host these nature
landmarks which in return has ensured even distribution of opportunities and
sharing of benefits of the booming sector across the country.
In
contrast for the ICT sector due to the high concentration of industry key
players big and small in the urban areas specifically the city of Kigali, the
benefits from this burgeoning service sub-sector are yet to be equally
distributed.
Today
almost all sector entrepreneurship support organizations are found in Kigali
despite it having the lowest population size compared to other provinces of the
country.
According
to the Rwanda Population and Housing Census, the City of Kigali has a
population of slightly above 1.7m residents compared to 3.5m in the Eastern
province, slightly above 3m in the Southern, and almost 3m in the Western
province.
Yes,
the City of Kigali has the highest number of people owning smartphones and
using the internet but the high presence of entrepreneurship support
organizations continues to undermine inclusive growth.
This
imbalance if it goes unchecked, risks the birth and exacerbation of unequal
distribution of opportunities created by the increasing digitization of some of
the economic activities which could worsen the digital divide gap between urban
and rural people with the potential to drive up the rural-urban migration.
The
statistics show that in the last five years, 354,970 people migrated to the
capital making the City of Kigali rank first followed by the Eastern Province.
A
situation that the Hanga Hubs project desires to prevent by ensuring that young
people in the countryside gain access to training, and get equipped with skills
that would enable them to significantly improve their innovation, creativity,
and entrepreneurial skills to start and sustain successful businesses.
Anchored
on Empowering Innovation for Smart Cities, the 16 months project intends to
establish well-functioning and equipped innovation hubs with the capacity to
identify, nurture, and support local talents and entrepreneurs in four
districts; Rusizi, Muhanga, Nyagatare, and Rubavu to build scalable businesses
in their hometowns.
The
major objective of the project is to provide tailored support to empower
individuals with innovative ideas and catalyze the creation of startups to
unlock economic opportunities in high-potential sectors with a keen focus on
digital-driven growth to make sure that opportunities are evenly distributed.
Beneficiaries.
Funded
by the European Union and implemented by the Government of Rwanda, specifically
Rwanda Information and Society Authority in partnership with the ICT Chamber,
the project targets to give training and mentorship to 1000 people aged between
18 to 35 years, build and support 192 startups and create 768 direct jobs.
To ensure inclusivity, 30% of trainees will be women while 3% of the total beneficiaries are people with disabilities. The project is hailed as one of the groundbreaking interventions toward ensuring that all young Rwandans regardless of their residence get access to and benefit from seemingly exogenous economic growth sources.
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