Monday, 29 September 2014

Rwanda to lead in the Financial Inclusion

Financial Inclusion, a key policy, by government of Rwanda, will make 90% of the population to have and actively use bank accounts by 2020. The research analyst of World Bank, Douglas Randall is impressed by the financial inclusion landscape in this country. The Rwandan government has targeted 90% financial inclusion by 2020. Advertisements had been put up everywhere by looking at which one can notice the signature of Rwanda’s inclusion initiative, Umurenge Savings and Credit Cooperative (Umurenge SAACO). FinScope survey 2008, found that 47% of Rwandan adults have some type of financial product or service but only 21% were participating in the formal financial sector, which were carried out by  different banks but were now included in SACCOs.

Due to the division of rural and urban sector as per the data the government divided to establish a SACCO in each 416 sectors. The government gave rise to the Umurenge SACCO. After 2008, the users of formal financial were rose to 42% in just four years. The Rwandans started the use of Umurenge SACCO to save or borrow which resulted in the growth of 21% users. The initiative was successful in accessibility to financial services up to 80% users outside the urban centers.  Read More...

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