In November 2023, Village Enterprise, a nonprofit founded in 1987 committed to eradicating extreme poverty in Rwanda, secured a substantial $6.5 million grant from the United States Agency for International Development’s (USAID) Development Innovation Ventures (DIV) program. This marks the second-largest DIV grant in over a decade and is poised to make a significant impact in fighting poverty in Rwanda.

What Is the USAID DIV Program?

Co-founded in 2010, the USAID DIV Program, or Development Innovation Ventures, is an open innovation initiative by the United States Agency for International Development (USAID) that funds groundbreaking solutions to address complex global development challenges. DIV provides grant funding to innovators and researchers, allowing them to test new ideas, take strategic risks and build evidence of what works. The program aims to discover and scale creative solutions that can make a meaningful impact on global development issues.

Village Enterprise’s Transformative Approach

Village Enterprise’s poverty graduation model has a track record of success, empowering individuals to set up, launch and run their own businesses in various sectors, from retail to bicycle repair. Entrepreneurs undergo a year-long program with mentorship from Village Enterprise’s specialist staff and receive business and financial literacy training, ensuring the sustainability of their ventures. 

Village Enterprise has significantly impacted the lives of more than 1,656,000 individuals in Tanzania, Kenya, Ethiopia, the Democratic Republic of the Congo, Congo-Brazzaville, Uganda, Kenya and Rwanda by starting at least 80,000 enterprises and training around 274,000 first-time entrepreneurs.

What Are the Main Points of the Grant?

1. Historic Grant: The $6.5 million grant is the largest in over a decade from USAID DIV and the second-largest in its history, demonstrating a notable commitment to combating poverty in Rwanda. 
2. Scaling Impact: The funding aims to scale Village Enterprise’s proven poverty graduation model across Rwanda, directly impacting over 30,000 households and catalyzing the launch of 10,000 group businesses. 
3. Government Partnership: Beyond financial support, the grant includes a partnership with the Rwandan government, equipping them to independently deliver the poverty graduation model. This aligns with Rwanda’s National Strategy for Sustainable Graduation, targeting the elimination of extreme poverty in Rwanda by 2030.
4. Potential Impact: The initiative has the potential to attract an additional $28 million in investment, aiming to lift over 1 million people out of extreme poverty in Rwanda by 2027, aligning with Rwanda’s ambitious poverty reduction goals.

Supporting Rwanda’s Goals

The Rwandan government is committed to eliminating extreme poverty by 2030, and the partnership with Village Enterprise aims to equip them with the tools and resources needed to achieve this goal independently. According to the U.N. Development Reports of 2023, 48.8% of the nation’s residents face poverty with another 22.7% nearing the poverty line. 

The grant will facilitate the training of government parasocial workers, enabling Rwanda to deliver the poverty graduation program without external support. Additionally, a management information system will be deployed for effective program monitoring. 

Dianne Calvi, CEO and President of Village Enterprise expressed enthusiasm about the USAID DIV grant, highlighting its potential not only to alleviate extreme poverty in Rwanda but also to serve as a blueprint for other African governments facing similar challenges. This transformative initiative aligns with global efforts to address poverty, emphasizing collective action and proven solutions.

– Suhani Bhattad
Photo: Pixabay