Rwanda launches fund to boost research led innovation

Rwanda, one of the African countries aiming to lead the charge in research and development investment, has recently taken a significant step towards boosting innovation with the launch of the Rwanda Innovation and Research Fund (RIRF). The move comes as Africa is criticized for investing less than 1% of its gross domestic product in research and development. This critical lack of investment has been seen as a major obstacle for the continent in building knowledge-based economies. The launch of the RIRF represents a beacon of hope for the African innovation landscape. Yariv Cohen, Principal at the Kigali Innovation Fund, joined CNBC Africa to shed light on how this fund is a game-changer for Rwanda's innovation journey. According to Cohen, the fund is poised to support entrepreneurial teams through the value of depth, providing guidance on commercialization and patient capital for scaling up. Cohen emphasized the importance of nurturing local entrepreneurs and SMEs, bridging the gap between them and global investors. One of the key themes of the interview was the significance of the RIRF in fostering research-led innovation. Cohen highlighted the challenges faced by entrepreneurs in scaling their businesses and the crucial role patient capital plays in supporting their growth. The fund aims to nurture promising startups and guide them towards regional and global success. Cohen also discussed the potential for Rwanda to become a hub for FinTech companies, with support from international collaborators like Abu Dhabi Global Markets. Key Points from the Interview: 1. Path to Success for Rwandan Companies: The RIRF aims to support 12 to 15 highly successful companies that will not only thrive in Rwanda but also expand their operations across the continent. The fund is envisioned as a catalyst for Rwanda to become a leader in innovation and entrepreneurship in Africa. 2. Collaboration with International Partners: Rwanda's collaboration with Abu Dhabi Global Markets opens up new avenues for local startups to access global markets and investors. By participating in events like the Abu Dhabi FinTech festival, Rwandan companies can showcase their solutions on a global stage, attracting interest from international investors. 3. Infrastructure and Regulatory Environment: While Rwanda is positioning itself as a conducive environment for FinTech growth, challenges remain in balancing innovation with regulation. Cohen emphasized the importance of flexibility in regulation to allow for the organic growth of FinTech companies while ensuring consumer protection and financial stability. In conclusion, the launch of the Rwanda Innovation and Research Fund signals a new chapter in Rwanda's innovation landscape. With a focus on nurturing local talent, fostering collaboration with global partners, and navigating regulatory challenges, Rwanda is poised to become a hub for research-led innovation in Africa. The success of the RIRF will not only benefit Rwandan entrepreneurs but also contribute to the continent's efforts in building knowledge-based economies.