MICROCAPITAL BRIEF: Rwanda’s Microfinance Growth Attributed to Both Existing Institutions, Launch of New Savings and Credit Cooperatives (SACCOs)

The microfinance sector in Rwanda reportedly experienced growth in fiscal year 2012, with gross loans increasing 44.7 percent from RWF 40.7 billion (USD 64 million) to RWF 58.9 billion (USD 92.7 million). Deposits also increased 18.1 percent, rising from RWF 45.8 billion (USD 72.2 million) to RWF 54.1 billion (USD 85.1 million). Total assets rose from RWF 77.4 billion (USD 121 million) to RWF 99.6 billion (USD 156 million).

The sector’s growth reportedly is attributed to both an increased issuance in loans in 2012 as well as to the launch of new savings and credit cooperatives (SACCOs). As a group, SACCOs reported an increase in total loans from RWF 4.8 billion (USD 7.55 million) to RWF 13.8 billion (USD 21.7 million) and an increase in deposits from RWF 22.4 billion (USD 35.2 million) to RWF 28.2 billion (USD 44.4 million). According to Mr Claver Gatete, the former governor of the National Bank of Rwanda, the country’s central banking authority, “The Saccos realized an impressive progress in terms of building their own premises and equipping themselves with necessary [information technology] skills paving the way for their computerisation and consolidation process.”

As of 2011, there are 19 Rwandan microfinance institutions (MFIs) that report data to the US-based nonprofit Microfinance Information Exchange (MIX) although there are reportedly approximately 490 MFIs in the country.

By Charlotte Newman, Research Associate

Sources and Additional Resources:

The East African: “Micro-finance Firms Post Record Growth,” http://www.theeastafrican.co.ke/Rwanda/Business/Microfinance-firms-post-record-growth/-/1433224/1708466/-/2vvw44/-/index.html

MicroCapital.org story, January 3, 2013, “MICROCAPITAL BRIEF: Millicom, Cherie Blair Foundation for Women, US Agency for International Development Offer Financial Literacy Training, Loans to Rwandan Women to Become Tigo Mobile Money Agents,” https://www.microcapital.org/microcapital-brief-millicom-cherie-blair-foundation-for-women-us-agency-for-international-development-offer-financial-literacy-training-loans-to-rwandan-women-to-become-tigo-mobile-money-agents/

MicroCapital.org story, October 31, 2012, “MICROCAPITAL BRIEF: FinScope Rwanda Survey Indicates Rise in Rural Lending Penetration to 58%, Reaches Savings to 68%,” https://www.microcapital.org/microcapital-brief-finscope-rwanda-survey-indicates-rise-in-rural-lending-penetration-to-58-reaches-savings-to-68/

MicroCapital Universe Profile: National Bank of Rwanda (NBR)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+National+Bank+of+Rwanda

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