ESO Performance-Based Grant Program – Rwanda

The World Bank (WB) has partnered with the government of Rwanda (GoR) to launch the Rwanda Digital Acceleration Project, a five-year program to increase access to broadband and selected digital public services, and strengthen the digital innovation ecosystem. In particular, the project components on digital innovation and entrepreneurship, which are private-sector focused, aim to position Rwanda as a Pan-African startup hub by developing a thriving ecosystem and enabling infrastructure for start-ups to increase their number and scale, and attract high-performing start-ups from the region.

Grant Windows

• ESO Performance-Based Grant Program consists three distinct grant windows to address the challenges faced by the Rwandan entrepreneurial ecosystem.
  • Capability Enhancement Grant
  • ESO Expansion Incentive Grant
  • Ecosystem Collaboration Grant

Objectives

• ESO Capability Enhancement Grant:
  • To enhance capabilities of Rwandan ESOs supporting high-growth startups to address critical gaps in their existing service offerings.
• ESO Expansion Incentive Grant:
  • To empower the strategic growth of Rwandan ESOs, with established foundation and demonstrated significant traction, by providing incentives for expansion and internationalization.
• Ecosystem Collaboration Grant:
  • Promoting collaboration between ESOs at a local, national or regional level, fostering an interconnected entrepreneurial ecosystem for enhanced services for high- growth startups. This funding will specifically be allocated for initiatives that contribute to the overall growth and development of the entire entrepreneurial ecosystem.

Funding Information

• ESO Capability Enhancement Grant:
  • Up to USD 225,000 per application, covering 100% of approved eligible activities. The grant sizes within this window will be contingent upon the funding requirements associated with the proposed activities that ESOs aim to undertake.
  • The disbursement of the grants will be performance-based, based on the delivery of the defined milestones and in line with the disbursement schedules as outlined in the grant agreement.
• ESO Expansion Incentive Grant:
  • ESOs will be eligible to apply for funding of up to three times the average annual revenue for the last three years, with a maximum limit of USD 500,000 per application. The funding will account for f up to 70% of the eligible expenses for the proposed initiatives. The ESOs will be required to contribute the remaining amount. The grant sizes within this window will be contingent upon the funding requirements associated with the expansion or internationalization activities that ESOs aim to undertake.
  • The disbursement of the grants will be performance-based, based on the delivery of the defined milestones and in line with the disbursement schedules as outlined in the grant agreement.
• Ecosystem Collaboration Grant:
  • Up to USD 85,000 per application, covering 100% of approved eligible activities. The grant sizes within this window will be contingent upon the funding requirements associated with the proposed collaboration activities.
  • The disbursement of the grants will be performance-based, based on the delivery of the defined milestones and in line with the disbursement schedules as outlined in the grant agreement.

Targeted Activities 

• ESO Capability Enhancement Grant:
  • Strengthening the skills and knowledge of staff and management to enhance support for startups.
  • Introduction of new, data-driven or technology-enabled methods for program delivery.
  • Strengthening the network of mentors or sponsors to provide enhanced support to startups.
  • Integration of adaptive methodologies to enhance overall program effectiveness.
  • Enriching existing services through introduction of other value-add offerings.
  • Development of a sustainable business model based on strengthening the capabilities and expertise of ESOs that leads to increase revenue generation, long-term viability and self-sufficiency in the delivery of enhanced service offerings.
  • General administrative expenses such as office rent and routine operational costs unrelated to capacity building will not be eligible for funding under this window.
  • Expenses that are prohibited by the Rwanda Digital Acceleration Project (RDAP) Financing Agreement and other project documents will not be eligible for funding under this grant program.
• ESO Expansion Incentive Grant:
  • Creating new innovative programs that attract and support diverse startups, creating cohorts with diverse international representation.
  • Supporting startups to present innovative solutions and scale up outside of Rwanda.
  • Creating initiatives that facilitate cross-border collaboration among startups.
  • Forging partnerships with global industry experts, international ESOs, incubators, or accelerators for strategic growth initiatives.
  • Developing specialized services for specific groups or sectors.
  • Undertaking diverse growth initiatives, for strategic growth.
  • Operational costs related to expansion and internationalization initiatives may be eligible for funding under this grant window based on case by case assessment.
  • Expenses that are prohibited by the RDAP Financing Agreement and other project documents will not be eligible for funding under this grant program.
• Ecosystem Collaboration Grant:
  • Joint ESO workshops and trainings to share expertise, best practices, and insights to enhance collective knowledge.
  • Ecosystem-wide networking events that bring together ESOs, startups, investors and other stakeholders to foster networking, knowledge exchange and collaboration.
  • Establishment of hubs, networks, or associations.
  • Outsourcing experts to facilitate ecosystem knowledge sharing events or trainings.
  • Provision of technical assistance on data collection and analysis for knowledge and networking platforms.
  • Other coordinating or collaborative activities that support collective growth of the entrepreneurial ecosystem.
  • General administrative expenses such as office rent and routine operational costs unrelated to ecosystem collaboration activities will not be eligible for funding under this window.
  • Expenses that are prohibited by the RDAP Financing Agreement and other project documents will not be eligible for funding under this grant program.

Eligibility Criteria

• ESO Capability Enhancement Grant:
  • Rwandan registered ESOs with a minimum of 5 permanent staff, that have some level of traction supporting high-growth startups.
• ESO Expansion Incentive Grant:
  • Rwandan registered ESOs with established foundations and a minimum of 8 permanent staff, with a keen interest in expansion and internationalization to cater to evolving needs of high-growth startups in a scale-up phase. The ESOs should have been in operation for at least three years.
• Ecosystem Collaboration Grant:
  • Rwandan registered ESOs, member-based organizations, associations or similar organizations with focused efforts to enhance the entrepreneurial ecosystem through intentional collaboration and ecosystem coordination initiatives.

For more information, visit RISA.