The microfinance sector in Rwanda is as young as 44 years old, right from the outset of the sector, it has been facing evolving phases, namely par excellence, financial reform program, microfinance policy and the related implementation strategy, the adoption of the Microfinance law, establishing sector regulatory body, as well as the establishment of Umurenge SACCOs. All of these efforts were put in place by the Government of Rwanda and its development partners to protect clients of the microfinance institutions; foster financial inclusion and strengthening the capacity of microfinance service providers.
The microfinance service providers, as one way of acknowledging and cherishing the contribution and support of the Government in facilitating their business, in 2007 created the association of microfinance institutions in Rwanda as a strategic approach to sustain the impact of Government’s efforts in strengthening the sector. The association acts as the voice for the sector, the sector information hub, and the “business gap detector” in the sector. According to Aimable NKURANGA, the executive director of the association, this three-facets mandate requires the association to work hard tirelessly, and hand in hand with all of the sector stakeholders, so as to consistently detect business challenges and advocate for the conducive business environment. Nkuranga highlights the key role that the Government of Rwanda played to uplift the sector to the current level. He promises that the Association is set to do whatever it takes to preserve what has been achieved so far.
“…it is not an easy task, but we are responsible and accountable not only to our Government but also to our members and their clients. We will make sure that the member’s voice is heard, we will make sure that clients of our members receive tailored financial services, in a bid to foster responsible finance for sustainable development in the area of financial inclusion…” Nkuranga said
In Rwanda Microfinance Day, which took place on November 20th, 2019 at Nobleza Hotel in Kicukiro district; AMIR members and partners had open discussions and opinions to adopt smart strategies that may overcome completely all sector challenges that are still hampering all efforts made to promote responsible finance and financial inclusion. The event participants: microfinance service providers, the sector regulatory body, sector development partners spent seven hours from 8am to 4pm exchanging constructive ideas on how to sustain the sector achievements and the role of each part. The discussions held mainly revolves around: VSLAs access and use of Microfinance Services – A stepping stone to responsible and inclusive Finance; The role of Financial Education to women and youth empowerment; contribution of AMIR to the development of Rwanda microfinance sector; the business case for financial institution SPM and CPP certification; and the TransUnion credit score, a tool for risk-based pricing in MFIs.
Rwanda Microfinance Day is stipulated by the AMIR’s communication and advocacy strategy as the effective communication channel whereby AMIR as the secretariat meets the members to collect advocacy issues, sharing sector achievements and discuss future plans of the Association.
