MICROCAPITAL BRIEF: Microbanks Share Software Through Association of Microfinance Institutions (MFIs) in Rwanda

The Association of Microfinance Institutions in Rwanda (AMIR), a group of 62 member microfinance institutions (MFIs), is implementing a computer system to help its members improve their microfinance operations. The “performance monitoring tool” will help staff collect and sort data on clients, streamline the loan application process and help MFIs monitor their performance. According to a statement attributed to Peter Rwema, AMIR’s programs director, 16 MFI managers have been trained in the use of the software, and additional trainings are ongoing. Support for the project has been provided by the National Bank of Rwanda; Access to Finance Rwanda, a company that promotes financial inclusion in Rwanda; and Small Enterprise Education and Promotion Network (SEEP), a US-based organization that educates and promotes small enterprises in developing countries.

As of 2014, the National Bank of Rwanda reported that the microfinance sector in the country had total liquid assets of approximately RWF 44 billion (USD 63.7 million) and gross loans of RWF 73.5 billion (USD 106 million) outstanding [1]. As of 2013, NBR reported total assets of RWF 676 billion (USD 979 million), total reserves of RWF 8.9 billion (USD 12.9 million) and net income of RWF 13.4 billion (USD 19.5 million) [2].

By Benjamin Krupp, Research Associate

About Association of Microfinance Institutions in Rwanda (AMIR)

AMIR is an organization that was established in 2007 to build the capacity of the microfinance industry in Rwanda. As of July 2013, AMIR consists of 62 active members that serve poor and middle-class families throughout the country. The association is governed by a general assembly and board of directors from Rwandan microfinance institutions (MFIs). Membership in AMIR is open to all MFIs that have been registered by Rwanda’s central bank.

About National Bank of Rwanda (NBR)

The National Bank of Rwanda (NBR) is the central banking authority in Rwanda. It is charged with regulating and supporting the financial sector. As of 2013, NBR reported total assets of RWF 676 billion (USD 979 million), total reserves of RWF 8.9 billion (USD 12.9 million) and net income of RWF 13.4 billion (USD 19.5 million).

About Small Enterprise Education and Promotion (SEEP) Network

Founded in 1985, the nonprofit Small Enterprise Education and Promotion (SEEP) Network, seeks to connect microenterprise practitioners to develop practical guidance and tools, build capacity and set standards for the industry. As of 2014, its members are active in about 170 countries. Headquartered in Washington DC, SEEP is governed by its members, which include microfinance institutions (MFIs) and nongovernmental organizations (NGOs).

Sources and Additional Resources

[1] allAfrica: Rwanda: Microfinance Banks Move to Foster Efficiency, Transparency

[2] National bank of Rwanda: Annual Report 2012-13

MicroCapital, April 16, 2014: International Finance Corporation (IFC) Commits Support Worth $300k to Back Newly Licensed AB Bank Rwanda, 8th Member of Access Microfinance Holding

MicroCapital, August 5, 2013: Association of Microfinance Institutions in Rwanda (AMIR), Child Savings International (Aflatoun), United Kingdom’s Department for International Development Inaugurate Youth Educational Program in Rwanda

MicroCapital, June 12, 2011: Association of Microfinance Institutions in Rwanda (AMIR) Cautions Microfinance Institutions (MFIs) Against “One-Size-Fits-All” Approach, Particularly in Rural Areas

MicroCapital Universe Profile: Association of Microfinance Institutions in Rwanda (AMIR)

MicroCapital Universe Profile: National Bank of Rwanda (NBR)

MIcroCapital Universe Profile: Small Enterprise Education and Promotion (SEEP) Network

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