Authors: Anna Gincherman, István Szepesy, Ann Moline, David Taylor
Areas Covered: Africa, Rwanda
Date: March 20th, 2024
Globally, women entrepreneurs encounter numerous barriers when seeking access to finance, ranging from discriminatory lending practices to limited collateral options. In many societies, well-established gender biases and cultural norms perpetuate inequalities, thus significantly limiting women’s economic opportunities. Despite demonstrating better payment rates on loans, women often find themselves overlooked or subjected to unfavourable terms by financial institutions. However, investing in women as entrepreneurs presents a unique opportunity for financial institutions. Women-led businesses have shown resilience and a propensity for growth, contributing significantly to economic development and job creation, representing over 52% of the total MSMEs in the country. Moreover, studies have consistently demonstrated that women tend to reinvest a higher portion of their earnings into their families and communities, thus amplifying the positive impact of financial inclusion.
While conducting a research study about women’s micro, small, and medium businesses in Rwanda, ConsumerCentriX spoke to Clemence Mukasimana, a BPR Bank client who runs a small manufacturing factory producing construction and plumbing materials.
At 40, Clemence is a testament to the indomitable spirit of entrepreneurship. Married and a mother of two, Clemence’s journey is marked by resilience, determination, and a commitment to rewriting the narrative for women in business.
Clemence’s venture into entrepreneurship was fueled by her background in business administration and years of experience as a financial accountant. In 2016, she founded a small hardware shop with a vision of it serving as not only a means of livelihood but also a platform for empowerment and change. Her business acumen and unwavering dedication saw her enterprise flourish. Today, she stands at the helm of a mini-factory, churning out high-quality construction materials like gutters and door frames, catering to Rwanda’s flourishing construction sector and harnessing an annual turnover of over 1 billion RFW.
But Clemence’s journey wasn’t devoid of challenges. Motivated to escape the mistreatment she faced in her former job and inspired by a friend’s entrepreneurial passion, she utilized a less common business strategy. “I adopted a growth mindset,” she reflects, ” and switched from selling products I bought for my hardware shop to producing them myself. This drastically increased my profits.”
However, she realized her vision required more than just determination—she needed access to financial services. Clemence’s journey underscores financial institutions’ crucial role in empowering aspiring entrepreneurs, specifically women. With initial capital from her savings, support from her family and a crucial loan from BPR Bank, she moved towards fulfilling her entrepreneurial dreams. “The first bank I contacted had very high-interest rates, so I went to BPR Bank”, she recalls. Discovering BPR Bank with its lower rates was a game-changer for her.”
Despite her success in accessing finance, Clemence acknowledges the challenges concerning business development services. She emphasizes the importance of holistic support, including international trade fairs, business forums and training programs, to nurture the entrepreneurial ecosystem.
Beyond her business pursuits, Clemence remains steadfast in securing both her family’s future and saving for her children’s education. Looking ahead, Clemence plans to expand her business and relocate to Rwanda’s industrial hub: the Kigali Special Economic Zone. Her journey highlights how entrepreneurship can be transformative, underscoring the crucial role of access to finance in unleashing limitless potential.
