Rwanda is often referred to as a model country for economic development in sub-Saharan Africa. Despite the positive economic development, Rwanda remains one of the poorest countries in the world. According to the United Nations Human Development Index 2018, Rwanda still belongs to the group of low-developed countries. 40% of the population lives below the poverty line. The high proportion of people living in poverty, combined with a growing gap between rich and poor, jeopardises economic and social development. The existing inequality, which regularly leads to violent conflicts in Kenya and Uganda, can potentially threaten social stability and cohesion in Rwanda as well.
Rwanda's economic potential is concentrated in the capital Kigali, where almost half of all formal enterprises are located. One third of all firms are engaged in small-scale trade and vehicle repair. Almost all local firms are informal micro-enterprises with fewer than 4 employees and little potential for growth. The competitiveness of the smaller enterprises is often low. A large proportion of MSMEs and SMEs cannot create stable jobs in the foreseeable future. Although Rwanda has one of the most liberal and start-up-friendly regulatory systems in the world, the country has not experienced a start-up boom yet that creates employment and reduces poverty.
Moreover, the professional skills of many job seekers do not meet the growing demands of the labour market, whose development is seen by Rwandan policy-makers primarily in the development of a digital and service sector. It is problematic that the educational pathway of vocational training also has to fight against a generally existing negative image in Rwanda. So far, young Rwandans see vocational training primarily as a stopgap solution that is only chosen if higher education is beyond their intellectual or financial means. Improving the quality of vocational training is a stated goal of national education policy in Rwanda.
Accordingly, the target groups of the project are students at the IPRCs who are aiming for a master qualification or the "Bachelor Professional", as well as trainees in companies. In addition, young Rwandans who are still in a qualification measure and want to take up self-employment after graduation, as well as company founders, are also part of the target group. Ultimately, all companies employing more highly qualified graduates and the entire economy of Rwanda will benefit from the planned measures.
