[{"bbox": [83, 105, 1147, 319], "category": "Text", "text": "The first component of the action will support business creation, medium and small enterprises (MSMEs) growth and youth employment, in a highly complementary fashion alongside recently launched EU support for incubation hubs under the European Development Fund (EDF) 11 NIP. The intervention will address existing support gaps alongside the entrepreneurship journey, including through a partnership with the Tony Elumelu Foundation that will expand their Entrepreneurship programme in Rwanda. This will increase the creation and growth of youth-led MSMEs, with a strong emphasis on inclusion of young women and persons with disabilities. Complementary interventions will include the organisation of entrepreneurship awareness campaigns and supporting the organisation of YouthConnect ideation and pre-incubation competitions."}, {"bbox": [83, 329, 1147, 490], "category": "Text", "text": "The second component will be focusing on fostering investment and improving the business environment, including through enhanced trade and regional linkages. The horizontal dimension of this component will include support for the domestic implementation of Rwanda's commitments under international trade agreements, in particular the African Continental Free Trade Area (AfCFTA), mainly through strengthening the capacity of the AfCFTA unit at the Ministry of Trade and Industry. The action will also include support for the capacity of the Rwanda Development Board (RDB) to design incentives and improve aftercare for foreign investors."}, {"bbox": [83, 500, 1147, 768], "category": "Text", "text": "The sectoral dimension of this component will focus on the mining and the pharmaceutical sectors. Interventions on the mining sector will encompass a holistic approach, including: support to the professionalisation and modernisation of operators, digitalisation of licenses and procedures, labour rights and social protection, training and implementation of international standards on environment and traceability, and skills upgrading. These interventions will aim to reinforce the attractiveness of a high potential economic sector notably in terms of the creation of decent jobs. Interventions on the pharmaceutical sector will focus on support to the regulatory environment, business climate and skills base, thereby enhancing the attractiveness of Rwanda for pharmaceutical investments. These interventions will work complementarily on two important tracks to enable local manufacturing of vaccines, namely upgrading of the maturity level of the Rwanda Food and Drug Authority (RFDA)/strengthening regulatory and policy frameworks and improving the skills of the workforce to be employed in the sector."}, {"bbox": [83, 778, 1147, 860], "category": "Text", "text": "The action will focus on the following four specific objectives of the MIP: (i) Inclusive entrepreneurship and research & innovation support, (ii) supporting access to and quality of TVET (iii) Support to economic governance in order to promote investment and a conducive business environment, and (iv) Measures in support of civil society."}, {"bbox": [72, 898, 301, 932], "category": "Section-header", "text": "## 2. RATIONALE"}, {"bbox": [86, 962, 220, 990], "category": "Section-header", "text": "### 2.1. Context"}, {"bbox": [83, 1017, 1147, 1656], "category": "Text", "text": "The economy of Rwanda has experienced strong growth over the last decade, among the top in Africa and globally. However, the economic impact of the pandemic has halted economic growth, and output contracted by 3.4% in 2020. Restrictions and lockdowns have continued in 2021 as a second and particularly third COVID-19 waves have hit Rwanda hard. In response to the COVID-19 crisis, the government is implementing an Economic Recovery Plan (ERP). The ERP has two pillars. The first is an economic pillar aimed at ensuring the survival of affected businesses and safeguarding jobs. The second pillar relates to expanding social protection to vulnerable groups, which has been the focus of EU support to the COVID-19 response by the Government so far. The response to the COVID-19 crisis has resulted in an increase in spending and a rise in Government debt, which will constrain fiscal policy and require consolidation of public finances in the medium-term. As Rwanda's fiscal space shrinks, the country's ability to continue to support growth through public investment will be limited and the Government is increasing its efforts to expand trade and attract more private sector investment as an alternative driver of growth and jobs. The country's determination and political capital invested in developing the biomedical sector and attracting private investment on the mRNA technology is a case in point. Another example is the efforts to modernise the mining sector, which is the main source of export revenues for the country. Due to its central location in Africa, Rwanda has a high potential to play a leading role in regional economic and trade integration in Africa, through supporting the effective implementation of the AfCFTA, but also the EU-EAC Economic Partnership Agreement. This is in line with Rwanda's aspirations to expand trade as one of the drivers of the economic recovery and future growth, and Rwanda's efforts to pursue further integration and connectivity within the East African Community (EAC). EAC and more recently the new AfCFTA offer opportunities for businesses based in Rwanda to cater for both continental and regional markets, including the growing urban centres of the neighbouring regions. Support to business creation, SME development and youth employment constitute an indispensable element of the economic recovery. Dynamic and competitive private enterprises of all sizes and strong ecosystems for entrepreneurship are critical for private sector-led development as a foundation of economic growth, job creation, poverty alleviation and increased prosperity. Support to entrepreneurship is a critical element in achieving the Government of Rwanda's ambitious growth and"}, {"bbox": [1051, 1663, 1157, 1687], "category": "Page-footer", "text": "Page 4 of 28"}]