From refugee to taxpaying entrepreneur via a UNCDF public-private sector tie-in

Kigali, RWANDA – Civil war forced Jacqueline Muhimpundu to flee her home in Burundi and start a new life as a refugee in Rwanda. Participation in an initiative of Inkomoko, a UN Capital Development Fund partner in Rwanda, gave her access to finance in the form of loans and skills development that has transformed her life, and thousands of other vulnerable individuals, with plans now readied for scaled up action.

“As refugees, we are capable, we have skills, and we can work and we can empower our community,” said Ms Muhimpundu at a recent event to celebrate the launch of the KUHI Consortium’s Community of Practice (CoP), which includes UNCDF and Inkomoko. The new CoP aims to leverage digital financial services and tools to refugees and host communities and drive business stability and growth.

Inkomoko provided “training on soapmaking, and I was able to increase my production,” said Ms Muhimpundu, a mother of six with plans to invest her earnings in her children’s education. “They encouraged me to work outside of my house, and so I rented a place to work, and I created my own enterprise, DETEX.”

Ms Muhimpundu also learned how to file her own tax returns. The training not only saved her money but has empowered her to protect her own interests and earnings.

“[I also received training on] digital skills, and to file my own taxes,” said Ms Muhimpundu. Before that, I had someone doing taxes for me who sometimes stole my money. Now, I can do a declaration of taxes and pay it myself. Learning digital skills saved me from losing money and being more self-sufficient.”

The KUHI Consortium launched in 2020 to promote economic resilience for underserved communities and refugees amidst the fall-out from the COVID pandemic, extending since then to focus on improving access to finance using digital solutions. The consortium, which was originally envisioned by GSMA, identified the opportunity presented by Rwanda’s progressive laws, which enable refugees to set up and run businesses and access financial services just as citizens are able to do. This provided a crucial opportunity for investment and offset growing constraints to humanitarian relief funding.

Central to the success of digital financial inclusion efforts in Rwanda has been the tie-in between KUHI Consortium members and private sector actors such as Equity Bank and Airtel Money. In addition to managing humanitarian cash transfers in the country, Equity Bank has provided additional digital banking solutions for some 46,000 refugees, while Airtel Money offers affordable 4G-enabled smartphones and cost-effective data plans.

“Digital financial inclusion is a topic of critical importance in Rwanda. This isn’t just about access to technology, it’s about empowering individuals and giving back to communities to ensure that we build a more secure and prosperous future for vulnerable groups,” said Marc Mico, Head of Payments at Equity Bank Rwanda.

A foundation for cooperation is now in place with KUHI, which stands for ‘Kubaka Ubushobozi Hifashishijwe Ikoranabuhanga’ in Kinyarwanda, which is widely spoken in Rwanda, and means building capacity through technology in English. Ambitions are now high for further cooperation that brings together UN agencies, private sector, academics and non-profits. On March 14, 2024, KUHI’s launched its Community of Practice with some fifty stakeholders working to advance digital and financial inclusion for refugees and host communities in Rwanda, led by GSMA, in partnership with Alright Rwanda, Viamo, Inkomoko, UNCDF, UN High Commission for Refugees (UNHCR) and World Vision.

“As part of the KUHI Consortium, UNCDF is committed to investing in and catalyzing capital for sustainable and inclusive growth in the world’s most high-risk and vulnerable nations and least developed countries,” said Jessica Massie, Digital Financial Literacy Specialist at UNCDF. “This community of practice aligns with UNCDF’s focus on fostering partnerships, digitalization, and inclusive economies, allowing the organization to contribute its unique expertise and resources to better serve vulnerable populations in Rwanda.”

For more information, see this related article on the GSMA website: “A community of practice to promote digital innovation and inclusion for refugees and host communities.”