Rwanda microfinance magazine by HAKUZIMANA

RWANDA MICROFINANCE M a g a z i n e

Exclusive interview with The Ministry of Trade and industry Hon. Minister P.6-7 KANIMBA François

Meet amir new leadership after October 25th, 2013 handover P. 25

ISSU E NO. 2 | JA N UA RY 2014 Microfinance in Transforming rwandan lives

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“Striving for professionalization of microfinance sector and financial inclusion towards poverty alleviation” a component of AMIR’s mission”

MICROFINANCE MAGAZINE | ISSUE 02

| JANUARY 2014

Editorial

Microfinance as a tool for poverty alleviation

ince its establishment as an umbrella of microfinance institutions in Rwanda, Association of Microfinance Institutions in Rwanda (AMIR), has played its humble role of professionalizing microfinance sector. For last 6 years of its existence, microfinance sector has registered impressive growth in terms of financial inclusion whereby it doubled from 21% to 42% and 39% to 58% formal and informal financial inclusion respectively for a period of 5 years. Overall financial inclusion (formal and informal) increased from 48% to 72% over this period. In other words: in 2008 more than half of the Rwandan adult population (52%) were financially excluded, but by 2012 this had been reduced to 28%, or 1.3 Million Rwandan adults not yet having access to either formal or informal financial services.

internationally.

We wholeheartedly thank government of Rwanda for the efforts it has invested in this endeavor and overall guidance it is providing to all stakeholders including AMIR. This achievement is something that all Rwandans are proud of and AMIR will continue to offer its modest role which we believe will contribute to the achievements of goals set in vision 2020 and specifically in EDPRS II.

AMIR has partnered with various stakeholders, spearheaded by Ministry of Trade and Industry, to establish Rwanda Institute of Cooperatives, Entrepreneurship and Microfinance (RICEM) which we believe will lift the standards of microfinance institutions to a level that is impressive. We anticipate that it will produce highly skilled staff on both supply and demand sides which will in turn assist in professionalization of microfinance sector and spur economic growth.

AMIR has done a lot in financial inclusion domain including financial education. We have trained various MFIs in this domain and they have started offering financial education lessons to their clients. We have introduced child and social and financial education concepts in schools in partnership with Savings Banks Foundation for international Cooperation (SBFIC), Rabo Bank Foundation and Aflatoun international which are experts in this field

We believe in power of partnerships and as you peruse through this magazine, you will notice that various partnerships that benefit the whole sector were created and we will continue to do so- which is true essence of any network organization. AMIR calls upon partners in the microfinance sector to promote the culture of savings and responsible finance as a way of alleviating poverty and meet the EDPRS II goals.

Since 2010, more than 30 000 students have opened accounts with either SACCOs or MFIs and they have saved more than 140M which is an average of around 4600 Rwandan francs for a period of 3 years. Our message is not about amount of money saved but inculcating savings culture into young Rwandans so that they become responsible citizens both socially and financially. AMIR has a membership of 62 MFIs and we are looking forward to start admitting Imirenge SACCOs as members in 2014 although we have been serving them in different capacities including providing professional trainings and management tools. This will be a quarterly magazine and will be showcasing the growth and impact of microfinance sector and we hope that readers will find it useful. In this issue, apart from general news of the sector, we have profiled the impact of some of the members to their clients/ members in case of SACCOs and in the next issues, we will be covering more impact of our members (MFIS/SACCOS) on their clients which we believe makes them socially responsible institutions.

Rita Ngarambe | Executive Secretary

SBFIC Deputy MD impressed with progress of RICEM Project

he German Savings Banks Foundation for international Cooperation has been supporting various Capacity Building Projects all over the world. However, the challenges are always manifold. Three questions should be answered properly in those projects: Will the Training Institution meet the needs and expectations of the trainees? Will its curriculum be accredited by the authorities? Will the institute be self-sustainable?

CONTENTS Microfinance transforms Rwandan livelihoods

Ngenzi has inked his name in Rulindo

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Ferdinand Feldgen

The way the Rwandan project partners tackle those challenges are a textbook example. All partners are committed to contribute technically and financially to the new institute. To guarantee the curriculum really meets the needs of the Rwandan microfinance industry, stakeholders sent their most skilled lecturers and practitioners into the project. In a series of workshops, Board Members and CEOs of SACCOs and MFIs, alongside Government officials, representatives of AMIR and other stakeholders, expressed and prioritized their training needs. In the next step, experienced trainers and lecturers drafted course outline based on the training needs assessment for the highest prioritized training modules. Those experts are currently working on the trainer manuals and training materials, and prepare to present their results to the high level representatives of Rwanda’s microfinance industry. The project team organizes the same procedure for the Cooperative Management Training Center and for the Entrepreneurship Training Center, too. I wonder how could RICEM’s curriculum be more demand-driven and needs-oriented? It is, as I said, textbook way. Trainees, Microfinance Institutions and also the Government expect those training to meet a certain level. Accreditation through the authority in charge gives evidence of a curriculum’s quality. In Rwanda, the Workforce Development Authority (WDA) is amongst the partners of the RICEM project, directly contributing to the curriculum development. Again, textbook way. Financial self-sustainability is always amongst the major challenges of training institutions. The partnership of several government institutions with different roof organizations from the private sector, with various financial partners standing behind them, provides RICEM with a strong start-up financing. However, in the years to come RICEM financing structure requires undergoing a change from donor-driven funding to business-driven funding. The more convincing RICEM’s educational opportunities are, the more partner organizations will be willing to finance courses. Here we come full circle: I am convinced that the needs-oriented curriculum I talked about earlier will, again, convince partner organizations. Textbook way, again.

Rwanda marked the world savings day with 9.7 % art of savings of G D P

UNICLECAM WISIGARA financing agriculture through KIRA MUHINZI product

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CMF Umurimo: facilitating access to financial services in Rusizi and Nyamasheke

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Education for my children, a legacy of microfinance in Rwanda

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RWANDA MICROFINANCE MAGAZINE Publisher Association of Microfinance institutions in Rwanda (AMIR) Editor in Chief Jean Damascene HAKUZIMANA Advisors Peter Rwema Thomas Konitzer Contributors: Seraphine HABIMANA, Daddy Sadiki Rubangura, Jean Pierre BUCYENSENGE Mimi Rachel Mukandayisenga © 2014 Association of Microfinance institutions in Rwanda (AMIR) All rights reserved.

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Partners and projects

Meet Semajeri Celestin, a hero in poverty alleviation initiatives in Musanze district

he Voluntary Savings and Loan Association (VSLA) is a self help-managed group initiated by CARE INTERNATIONAL for helping poor people to mobilize their own savings, offer credits and other financial services inside the groups. The Association of Microfinance Institutions in Rwanda (AMIR) partnered with CARE for linking these VSLAs to the formal financial institutions (AMIR members) and to offer financial education for building their capacity in money management. All partnership’s activities have impacted the lives of beneficiaries by creating income generation activities and improving their holistic life. Below, we noted some testimonies from VSLA members: SEMAJERI Celestin is the well-known name when talking to poor residents of Gasiza Cell in Cyanika Sector in Musanze District of Rwanda. Grouped under 3 Voluntary Savings and Loans Association, 90 residents of the GASIZA CELL have managed to rich a height of one small stock , a sleeping mattress and farming land for everyone in a period of 24 months. This started when CARE international trained SEMAJERI Celestin to help in its financial inclusion program world widely known as Voluntary Savings and Loans Association-VSLAs. SEMAJERI did not know that after the training he will be some one of importance to his fellow residents. “CARE gave us training of trainers on mobilizing extreme poor people and teaching them how to save from a small coin to something” He said. “SEMAJERI came to my home where I used to stay hopelessly and without occupation and he told me to join others for a

voluntary saving and loan group. I was hesitant to join as I was wondering what I will bring since I have nothing as money at home” narrates Claudine MUKAMURENZI, a member in DUTERANINKUNGA VSLA group. Claudine MUKAMURENZI followed SEMAJERI’s call and joined the group of 30 neighbors where the start-up saving amount was 200 Rwandan francs (1/3 a dollar) per week. This was going to be the cycle for richness as she witnesses: “After 9 months I bought a goat from my savings, which has given birth to 2 goats that I sold and bought a farming plot. I’ve never gave up saving in the group. After other 9 months I bought a mattress. With the farming plot I opted to multiply Irish potato seeds where every farming season at least I get 1 ton to be sold at 400 Rwandan francs per kilogram (2/3 a US Dollar). After 24 months in Village Savings and Loans Association, MUKAMURENZI Counts a current wealth of 800.000 Rwandan francs (USD 1.250). Her message is clear: “I thank CARE and our Village Agent SEMAJERI have helped us to say no to extreme poverty” She said. AMIR’S VISION TO VSLA DUTERANINKUNG VSLA has been linked to microfinance cooperative of BUKAMBA as any other mature VSLA. The process is to link every group with a Microfinance institution to gradually leave informal to formal level. AMIR is convinced that working in VSLA has bi-fold role for financial inclusion as well as financial education.

L-R Semajeri mentoring DUTERANINKUNGA VSLA at a weekly basis RWANDA MICROFINANCE | ISSUE NO. 2 | DEC 2013

Rwanda marked the world savings day with 9.7 % art of savings of G D P Rwanda has joined the rest of the world in celebrating The World Saving Day scheduled every 31st October Annually. Actors in the financial sector of Rwanda have organized a series of activities related to promoting savings, inculcating the culture of savings among Rwandans a well as refreshing practitioners across the whole country. It was meant to be a coordinated day of activities (happening over the week leading up to 31st, by building on the grassroots work done by each stakeholder under the theme: “SAVING FOR SELF RELIANCE” (TUZIGAME DUHARANIRA KWIGIRA).

he Ministry of Finance which spearheaded this event urged all Rwandans to embrace the saving spirit as one of the best ways of reducing the savings-investment gaps. “People need to know that to develop, you need to take saving as a habit,” said the Finance and Economic Planning Minister Amb. Claver GATETE in an interview. According to the Finance and Economic Planning Ministry latest figures, the art of savings is at a paltry of 9.7 per cent of Rwanda’s Gross Domestic Product. “We have to plan properly if we are to achieve the targeted 20 per cent level of savings by 2020 in order to achieve our investment of 30 per cent Gross Domestic Product ratio by 2020. This is how we can become a middle income country by 2020,” said Amb. Gatete. Different stakeholders celebrated the week toward Savings week AMIR-SBFIC celebrated this week with an emphasis on child savings! The Association of Microfinance Institutions in Rwanda in collaboration with German Savings Banks Foundation for International Cooperation believe that providing financial education to young people means that in the future the country will have a generation of citizens with great entrepreneurial minds and strong financial discipline. This is contained in their 3-year old project of financial literacy to pupils that they monitored and mentored during the week toward world savings day (31st October). Marked in different districts of Rwanda like Karongi, Kamonyi, Nyagatare, Rubavu and Nyamagabe, the major message was to encourage pupils who have joined the this project of savings and financially literacy as well as reminding managers of MFIs involved in this project to continue their prime role of encouraging children holding accounts in their institutions. The major event was held at Muhanga stadium with a coincidence of official opening of COOPERATIVE OF PROGRESS AND FINANCING -CPF INEZA, a MFI member of AMIR.

People need to know that to develop, you need to take saving as a habit, Minister of Finance and Economic Planning Amb. Claver GATETE

Access to Finance Rwanda and Global Communities Access to Finance Rwanda-AFR, Global Communities in conjunction with the Ministry of Finance and Economic Planning animated a big conference on 31st October, while closing the saving week. Actors in the financial sector met to discuss the theme of “saving for self-reliance” and way forward. Tackling challenges in savings among Rwandans is a key toward increasing the saving rate according to Judith Aguga, the Technical director of AFR. She indeed presented a circle of pillars to promote savings as : designing a product to meet client category, promote voluntary saving, increase return rate on savings, strengthen institutional capacity and accessibility to support savings as well as education on consumer protection. The week long activities were concluded by a town hall meeting where the Minister of Finance and Economic Planning, Amb. Claver Gatete and his team debated with Rwandans on national radio and television the culture of saving. “We are requesting Rwandans to think about how savings can help them and how their savings boost economic development of our country,” he pointed out.

Partners and projects

Exclusive interview with Hon. Minister KANIMBA François

he Ministry of Trade and industry, together with partners including Association of Microfinance Institutions in Rwanda (AMIR), has initiated the establishment of Rwanda Institute for Cooperatives, Entrepreneurship and Microfinance which is scheduled to officially start its programs in 2014, the Minister of Trade and Industry believes that the institute will help much in improving domestic growth. The Microfinance Magazine’s Jean Damascene HAKUZIMANA caught up with him in an exclusive interview and below are excerpts:

J DHAKUZIMANA: Let’s start our interview with your introduction Honorable Minister, MINISTER KANIMBA FRANCOIS: ...I thought you know me....crack of jokes... am called KANIMBA Francois, the Minister of trade and industry in Rwanda.

JD HAKUZIMANA: What does the letters RICEM stand for? MINISTER KANIMBA FRANCOIS: RICEM is an acronym standing for Rwanda Institute for Cooperatives Entrepreneurships and Microfinance. It is a joint initiative of Ministry of trade and industry, Central Bank, Association of Microfinance Institutions in Rwanda (AMIR) and Rwanda Cooperative Agency. It started at the end of 2012 with the advisory partnership of the German Savings Banks Foundation for International Cooperation (SBFIC). It is set to combine efforts of actors in building the skills gap in cooperatives, entrepreneurship and microfinance sectors. We adopted this framework to minimize the cost of capacity building since every partner was doing it on their own: The Institute has started operating at former Centre IWACU Kabusunzu and it has the interim Principal. The ministry of trade and industry and partners will finance the establishment of this institute for five years where the institute is supposed to become self-financing. J.D HAKUZIMANA: In which perspective do you see the support of RICEM to the microfinance sector honorable Minister ? MINISTER KANIMBA FRANCOIS: Ooh... there is much to mention in terms of the support that RICEM will procure to the microfinance sector; microfinance institutions

RWANDA MICROFINANCE | ISSUE NO. 2 | DEC 2013

My belief is that the microfinance sector is contributing much in poverty alleviation in Rwanda.

Microfinance will play a big role in all government’s strategies to alleviate poverty especially EDPRS2. HON. MINISTER KANIMBA FRANCOIS, The Ministry of Trade and industry

have been suffering from poor skills since 2005. We used to have capacity building programs but they were done ad hoc and sometimes with limited budget constraints. Now that we have RICEM, we want to channel into all capacity building programs and budgets and this will help all microfinance employees to acquire needed skills.

JD HAKUZIMANA: Honorable Minister, RICEM seems to be a joint initiative between partners, how are you coordinating their efforts as well as their interests? MINISTER KANIMBA FRANCOIS: The fact that we have agreed on the concept of the establishment of the institute until the recruitment of the interim principal is a clear sign that partners in this project are committed. We have also agreed with all the partners that they will bring in budgets they have allocated to capacity building so as to strengthen its operations. Some donors have started showing interest in supporting this institute when it kicks off its programs.

JD HAKUZIMANA: What portion do you wish Microfinance sector would bring into the development of Rwanda? MINISTER KANIMBA FRANCOIS: From my previous career, where I was the Governor of the National Bank for ten years, I have seen the birth and growth of microfinance industry in Rwanda. My belief is that the microfinance sector is contributing much in poverty alleviation in Rwanda. Take an example of the role SACCOs and other Microfinance Institutions are playing in rural financial inclusion, people were reluctant even to become members but now they are actively saving and ask for loans. The total number of microfinance clients increased from 21 to 42% within 4 years. Microfinance will play a big role in all government’s strategies to alleviate poverty especially EDPRS2.

JD HAKUZIMANA: An association like AMIR should focus on what according to you? MINISTER KANIMBA FRANCOIS: That is a good question; AMIR is a professional organization in the sector which is still young. Much of efforts should focus

on advocacy; advocating for an enabling environment between microfinance institutions and regulator like Central Bank. This advocacy has to be done also in terms of capacity building. AMIR should become a channel to collect best practices from developed microfinance sectors and disseminate them to its members to stimulate them to innovations. JD HAKUZIMANA: As the Minister of trade and Industry, what makes you sometimes upset when thinking on your assignments? MINISTER KANIMBA FRANCOIS:...jokes...I don’t know if your question was on the agenda of our interview but let me answer it—jokes. Well, any Minister of trade and industry in Rwanda is concerned about the status of national economy. Am much concerned with the gap between importation and exportation in Rwanda. Rwanda wants its economy to continue growing from 8% to 11% and from that the country will continue importing different items like big machines, the country will remain landlocked, I t is really a challenge. But we are committed to address these challenges by increasing domestic growth, increasing the capacity of our local industries to compete internationally and formulating favorable industry policies. This is where I would like to emphasize the role of RICEM; to enhance capacity of local practitioners.

J.D HAKUZIMANA: Curious question Honorable Minister, How do you save your money? MINISTER KANIMBA FRANCOIS: I save as any other Rwandan, I have accounts in banks where I save the difference between my salary and running cost, when it is an important sum I transfer it to a saving account to generate interests. Also for us public servants, saving is also about having assets. I have a leaving house and I have built another one in NYAMAGABE-I call them savings. I have also saved for my retirement pension which will help me when I retire.

JD HAKUZIMANA: Anything to add Honorable? MINISTER KANIMBA FRANCOIS: I think you have asked me enough, thank you! JD HAKUZIMANA: Thank you Honorable.

Partners and projects

AMIR’s New chairman shares his views on MF sector development

he Association of micro finances in Rwanda (AMIR) has poverty eradication in sustainable manner in its vision and it aims strengthen Microfinance institution to play a big role in this endeavor. This will be achieved through capacity building, refinancing, research and product development that puts clients’ needs first. Rachel MUkandayisenga met Nzagahimana Jean Marie Vianney, AMIR’S chairperson, and here are views of the institution he heads. Rachel: How does AMIR work with micro finance institutions? JMV: First and foremost, it should be clear that AMIR is a network of MFIs/SACCOs with a permanent secretariat that runs daily operations on behalf of members. So, AMIR is all members, it works in areas of advocacy and representation of all members and the microfinance sector in general. It also provides other services like information sharing, capacity building and product development among others. Furthermore, capacity building centers around loan management, financial analysis, risk management and leadership among others.

Rachel: Do you provide refinancing for those with limited means? JMV: So far, we don’t but we link them to the donors and other social investors. Rachel: Does AMIR admit small SACCOs as members, if yes, when Imirenges SACCOs becoming AMIR members? JMV: Yes, we admit everybody regardless of its size whether small or big. For Imirenge SACCOs, we have finished putting in place AMIR strategic plan for next five years and an operational plan for 2014 and all these documents details a strategy on how Imirenge SACCOs are going to be admitted as AMIR members- they can’t be left out as they are becoming bigger players in the sector. Rachel: How do you envisage the role of IT in growth of MFIs in Rwanda? JMV: IT is going to be a tool of economic growth in this country and MFIs are not going to be left behind that is why we have planned products development activities related to IT like mobile banking which will assist in increasing financial inclusion in this country. RWANDA MICROFINANCE | ISSUE NO. 2 | DEC 2013

Rabobank Foundation: Rachel: MFIs and other financial institutions decry over defaulting. How do you handle this situation as AMIR? JMV: This is a surging and concerning problem. As AMIR, we will keep providing MFIs with managerial skills through trainings and coaching as well as participating in the national recovery process that has a national steering committee. On the other side, we caution MFIs/ SACCOs to critically examine projects before disbursing funds. They are requested to make sure that the projects are promising. They are asked to follow up these projects even after the start up, in order to know that the money is surely invested where it should be and experience together the projects growth. More to that we are engaged in financial education initiatives which we believe that will be the medium or long term solution to this problem

Rachel: As the Chair of Umwarimu Sacco what are its achievements so far? JMV: It started in 2008 which means that it is five years old. Although it is new, there are realizable achievements over its clients, for so far, 54 billion Rwandan francs were disbursed and 80% of the entire amount was put in two main activities which are home construction loans and home rehabilitation loans, while the remaining 20% were put in teachers’ small income generating projects. Umwarimu Sacco has decentralized its services as its offices are present in all 30 districts. We as well started cooperation with more than 300 Umurenge Saccos all over the country. With the main objectives to be teachers’ progress, we drop down loans’ interest rate. A public school teacher pays on 11% whereas a private one pays on 14% interest rate only which we believe that is amongst the lowest in the country.

Rachel: We thank you for the interview JMV: It’s a pleasure talking to you.

product development for MFIs

his year AMIR and Rabobank Foudation took two important initiatives in the field of product development for microfinance institutions.

First of all, we continued the pilot programme with four institutions in micro-leasing. next to individual advice and coaching, a technical evaluation was held. We also discussed the next phases of the project at a workshop early September. The MFIs that participated are Duterimbere Microfinance, Umutanguha Finance, Letshigo (formerly RML) and Goshen Finance. They now offer leasing for vehicles, motor cycles, water pumps and tanks, sewing equipment. AMIR and Rabobank intend to extend the project in 2014 to other MFIs. Once again technical assistance of Rabobank’s leasing subsidiary ‘De Lage Landen’ will be solicited. The evaluative research has shown that the clients appreciate the leasing product: they are able to acquire a piece of equipment that they could not afford before. Leasing is really an attractive addition to the range of credit products of the MFI.

In September we started a training project for five MFIs in agricultural lending. It is executed by a local consultant and supervised by Rabobank Foundation. Managers and credit staff of MFIs are assisted in defining and introducing credit products for their clients. This is based on analysis of cost-benefit of the important crops in their zones of operation and, surely, within the framework of the government’s agricultural policies. Repayment capacity is an important element in determining to which smallholders an MFI can lend. The project includes support to the MFIs in amending their policies, procedures and manuals to ensure that crediting respects good practices and loan collection is easy and swift. After a week-long training, the MFI agents will be individually coached to ensure that smallholders indeed get access to credit in amount and conditions that are suitable to their business. This pilot project which is funded by Terrafina will cover in total 60 staff members of MFIs.

Partners and projects

Microfinance transforms Rwandan lives

COOPEC-ITI changing rural livelihoods

he saving and Credit Cooperative (COOPEC-ITI) was started as IKIMINA in 1987 due to the idea of Mathias Ntungabatenda, with a spirit of meeting the needs of the what was called Byumba and Ruhengeli population to access credit and savings services thus fighting poverty. They were operating in an informal way of traditional money lending between members to improve their livelihoods. In the interview with Jean Damascene Mvunabandi, The General Manager of COOPEC ITI, he explains how the cooperative evolved from IKIMINA to LA COOPERATIVE D’EPARGNE et de CREDIT(ISANDUKU TWIZAMURE IWACU-ITI). All were efforts from its members. “The cooperative was started in informal way like IKIMINA and step by step its members contributed enough to develop it” says Mvunabandi.

fifth place in cooperatives in general and the first place in the cooperative of savings and credits particularly in the country. COOPEC ITI funds members who are involved in agriculture especially tea and in mining sectors. He added that in past years there were members who started with a loan of Rwf300, 000 and now they are saving more than Rwf5m from their respective businesses, a fact which gives motivation to COOPEC ITI. COOPEC ITI started with 110 members but now the number has increased to 3,000 members. Today, they are holding Rwf 112m savings. The Cooperative has the capacity to give loans up to Rwf 3M and the Cooperative’s operations are computerized thanks to AMIR’s efforts of professionalizing the Microfinance sector.

“We are hoping that in five years COOPEC ITI will become a formal limited Company MFI considering achievements we have made so far,” he adds. The cooperative focuses on the development of rural area in transforming the social and economical lives. Mvunabandi says through fundraising and in 2000, members built a 6-offices building included a big hall where members hold their meetings. COOPEC ITI obtained a definitive agreement certificate by the National Bank of Rwanda in 2007 and the juridical personality renewed by RCA, in 2010, since then the cooperative was legally recognized. In the same year, COOPEC ITI got a certificate of motivation of good management by MINICOM, with the RWANDA MICROFINANCE | ISSUE NO. 2 | DEC 2013

By Seraphine Habimana

“The cooperative was started in informal way like IKIMINA and step by step its members contributed enough to develop it”

Mvunabandi.

Meet Ngenzi COOPEC ITI client; From market street to a prosperous businessman in Rulindo district

he year was 2007 when he asked Rwf300, 000 in COOPEC ITI Cyungo. Jean Ngenzi, 29, a resident in Cyungo Sector, Rulindo District, Northern Province was always determined and very hard working as he had an idea of becoming a successful business man in the area despite the capital barrier. Ngenzi started with small commodities but this business did not make much progress then after he decided to ask for a loan in COOPEC ITI to make a decent business. Tired of borrowing money from others decided to adhere to the cooperative “My dreams was in trading business all my life, I never lost hope. Helped by COOPEC ITI I have realized that my business will be much better than today, one has to trust me” says Ngenzi. “Therefore, I had to wake up and take full advantage of the commerce focusing on the need we had in the village. Besides, it was the only business I had grown up seeing everyone tried doing even if it was very hard to start without a big capital” says the 29-year-old Mugenzi.

Starting out At 15 years old, Ngenzi hawked wares on the streets and village market. The years after, small-time business completely got in loss until he could not continue such trades. Up to last 6 years, Ngenzi, quit a street and unstable hawking in Rulindo area where selling food stuffs and drinks for opening a shop’s products contain consumable stuffs, drinks, wine among others together with a restaurant and bar. Ngenzi explains that he achieved all thanks to COOPEC ITI’s loan of Rwf300, 000 which took him to the right step in his life and he implores other residents to be members of SACCOs so that their dreams may come true. Achievement So far Ngenzi has built a decent house in the suburb of Rulindo for him and his family. He has bought a piece of land of 5 hectares where he is hoping to make a business of

Partners and projects

a respectable hotel. Ngenzi who dropped out of school in primary six, vowed to change his situation transforming his motherhood. He started by engaging setting up a shopping then restaurant and bar. He offers unique and original stuff in the area while before people walked about 2 hours to get the services into the main road center (BASE). Today, besides trading, Ngenzi has dairy cows and has a store of drinks and conference hall which can accommodate more than 200 people. He ensures, he is the only one in the area who can offer any service needed by everyone. “The source of everything I have come from COOPEC”. He confesses As they say, hard work pains but pays, Ngenzi is a successful business man in his own right, thanks to COOPEC ITI. “My dreams and life belongs to the business, since I am a good client of COOPEC ITI, after paying back the loan I asked

in September, I am planning to ask another to expand my business into the hotel. Advice to youth and stakeholders Ngenzi is encouraging youth in the area to join COOPEC ITI or any other SACCO, the only way they can achieve their goals and he thanks the government of Rwanda that created an enabling environment that gives all citizens AGACIRO. “The opportunities are there, there is a need to behold and use them. I do not know why the youth run into towns to search for jobs while they can just get close to the cooperative and get the income to start up as long as they have an idea. There is nothing difficulty in starting a business. And if you do not make any kind of business at the present we have the microfinance just near us, especially when you are still young cannot expect to turn over when getting old, this is our time we have to stand up and work since the COOPEC ITI is there for everyone,” Ngenzi advises. ‘Especially the businessmen should learn how to save and make it a life,” he concludes. By Seraphine Habimana

Working with COOPEC ITI has turned his life around By Seraphine Habimana

ascal Muhire is farmer in Cyungo Sector, Rulindo District, Northern Province. His farming is based on Irish potatoes and livelistock. He started working with COOPEC ITI in 2009 when it gave him a loan of Rwf250, 000 to do a farming business. He says that before joining COOPEC ITI, he did farming on 0, 5 hectares. His life was not easy as he had to rely on small piece of land and he could not find manure to get a good harvest neither. “When you have a motivation and will everything is possible. A poor project can become a big one when you work with a trustful cooperative which is near you and give you time to hear from you and letting you express your ideas,” he notes. Muhire says COOPEC ITI does not help them for a loan only but also it gives them good advices on how to make their businesses succeed and besides this it never lets us down. “Our cooperative always has a good intention with us,

RWANDA MICROFINANCE | ISSUE NO. 2 | DEC 2013

whenever asking a loan and after, they visit our projects often guiding us in everything. We are truly proud of having COOPEC ITI here and working with it as well,” he recommends. Starting out “In 2009, COOPEC ITI offered me a Rwf 250,000 loan which I used to revolutionize my farming project,” narrates Muhire. Step by step, the more a cooperative expanded, I asked more money until I got a loan of Rwf3m. This loan helped me to buy more piece of land for expanding my project even more business. He later on joined a COOPEC ITI in 2010 asking Rwf300, 000, so precisely; his business has become a punctuation of consistent failure and misery. “The secret of fighting against poverty or making any business is working with a microfinance which will not ask you conditional guaranty or take long time queuing unlike other banks,” he says and adds “I started doing modern farming and trading at the same time. All started with an investment of Rwf250, 000. Today I have bought a house which is worth Rwf3m and a piece of land for a modern farming,” he says. 39-years old, Muhire says he is able to pay school fees for his children through his business, thanks to ITI microfinance cooperative. In the not so distant future, he wants to ask Rwf1, 5m to start up another business of selling the fertilizer and other inputs in the area. “The earnings from this business and farming have enabled me support five children, at various levels of education”, Muhire points out. He employs 15 permanent workers, paid between Rwf500 and Rwf1000. His entrance seems to come with fortune, immediately bought more pieces of land, 3 hectare now, and a decent house which cost Rwf3m. “My determination has been cooperated since I am able to save and ask for a loan any time I want as long as I have a guarantee means and I hope to achieve a great deal more by continuing saving wisely,” he ends.

Hategekimana uses a microfinance loan to impart hands on skills to skills to rubavu youth

ean Baptiste Hategekimana, 38, is a resident in Mubona Sector, Rubavu District, Western province. He owns a welding workshop in Rubavu where he trains students given by the district when they come from IWAWA to acquire more knowledge and skills before staring up their own business. The business started in 2012 with an investment of Rwf1m as a loan asked in UNICLECAM Nyamyumba. As his business grows fast, Hategekimana diversified his business that is why the district trust his business by giving trainees one student pays Rwf18, 000. “I train them in a way of giving them the inspiration and enough experience so that they will be able to open up their own business in the nearer future,” he notes. On top of that he employs 10 workers from different places. “The chance we have here is that UNICLECAM WISIGARA is near us, taking much time with us. By all means it never ignores our project ideas whenever I have a problem with my business, the cooperative lend me the money with preferred conditions,” Hategekimana says Hategekimana added that the cooperative has interest in trusting him. He has worked with microfinance and has asked loan five times and paid it back on time. “If you are committed and determined working with microfinance which hears from you and gives you time nothing can limit you being prosperous” he noted. UNION CLECAM opened for me the door; I have bought some piece of lands. I build a decent house which worth Rwf5m. Hategekimana advised others who do not work with microfinance yet to adhere to microfinance to expand their activities. Hategekimana believes that the strenghth of working with microfinance resides in being a nearer institution where any . challenge faced is solved timely.. “If you are determined, you have a project idea why delaying in joining the cooperative?” Hategekimana now earns Rwf500,000 per month. He says all his business assets are estimated at Rwf5m, while he has paid a half of the loan he has asked in CLECAM. To Work with microfinance opened my mind and I encourage fellow Rwandans to embrace that culture to become rich. By Seraphine Habimana

Partners and projects

UNICLECAM WISIGARA financing agriculture through KIRA MUHINZI product

microfinance according to the manager. Majyambere can witness improvement of clients of CLECAM WISIGARA especially the farmers.

In the interview with the General Manager of UNICLECAM WISIGARA, Florent Majyambere explains that the cooperative came to increase the capacity of rural farmers through loans and other financial services.

A farmer member of CLECAM WISIGARA pays after 4 months after getting the loan and depending on the farming season, with an interest of 20% and a commission of 1%.

NICLECAM WISIGARA is a micro finance institution with a focus on agricultural and animal husbandry domain. It started in 2004, in Rubavu District, Western Province.

“The idea behind was to promote value chain and agribusiness through micro credit and we are still stick with it,” says Majyambere . The manager added that the microfinance appeared just after Banque Populaire du Rwanda that they had to work very hard to make innovation and specialty of their service so that could attract many people in the area.

The first thing was to change the mind of people who kept the money in traditional way. The microfinance has worked much to fight against that habitude breaking down such habit and made them aware of saving and accessing to credits. He points out that the idea of UNICLECAM WISIGARA was to proof that people who believe that a farmer can’t develop are wrong.

“We do not give to them loans only but we keep mentoring them during the farming season. and make sure that their businesses progress”

The collateral in UNICLECAM WISIGARA is a piece of land or house. The smallest amount to lend is Rwf20, 000 while the biggest is Rwf 1m according to the Manager of CLECAM WISIGARA.

ACHIEVEMENTS Members have increased from 100 to 32,000 . CLECAM’s operations are computerized and they can serve 100 clients a day. “Our service is rapid, everyone admires it and it is our pride though we have to improve it 20% to 40% in agrifinancing” Noted Majyamberes.

The total assets of CLECAM is estimated in Rwf957m while gross loan is Rwf704m. CLECAMS from Rubavu, Rustiro, Burera, Ngoreroro, Gakenke Musanze And Nyabihu have formed the union namely-UNICLECAM WISIGARA.

How UNICLECAM WISIGARA started: In 2004, when starting they had 100 members. The cooperative had just started working with farmers grouped in KIRA MUHINZI, aproduct where farmers can access easily agricultural loans. The manager added that they work with cooperatives so that more farmers access loans with one guarantee of working together.

“

By Seraphine Habimana

“We do not give to them loans only but we keep mentoring them during the farming season and make sure that their businesseses progress”

This way of working has attracted a mass to join the RWANDA MICROFINANCE | ISSUE NO. 2 | DEC 2013

Kazingufu is one of the KIRAMUHINZI product beneficiary at UNION DES CLECAM WISIGARA

ot many people think that their business can be successful by using a small loan, but rather big loans from commercial banks or other big institutions.. For Philemon Kazingufu, a resident in Nyamyumba Sector, Rubavu District, and Western Province, the case is different. All that he has as business capital, came from working with CLECAM Wisigara, a microfinance institution in Northern and Western Province of Rwanda. With six years as a member of WISIGARA, Kazingufu has has visualized most of his childhood dreams. At the first time, Kazingufu asked a loan of Rwf500, 000 in UNICLECAM WISIGARA, for repairing his fishing boat business in Kivu Lake. Kazingufu says before starting working with the cooperative, he had a fishing boat after then his boat got an accident and stop working. As he was a member of CLECAM WISIGARA microfinance, he decided to ask for a loan to repair a boat after paying it, he asked other loan for starting growing .poultry business. By poultry business, he was motivated by the fact that RUBAVU is an area with restaurants, hotels indeed board town. He started with 150 chickens and now he has 1500 chickens where he makes eggs trade and sell meat .

Through his business, Kazingufu has built a decent house which worth Rwf3m.And he monthly earns Rwf500, 000. from all his business. He never forgets that all jumped from saving simple coins that he was getting from daily jobs and now he owns businesses.Now Kazingufu sells eggs and meat to different hotels, restaurants and supermarkets in Rubavu.“this business has helped me to buy more pieces of lands where I will make make a piggery business in the near future” Kazingufu unveiling his future plans. Advice to farmers One cannot develop without saving and access to the credits. It is better to join such cooperative which is the only response for farmers.“armers have no choice rather than working with microfinance institutions to modernize their farming and target o the market unlike in the past years where our parents were farming for home food.” Advises Kazingufu. “ He adds tha microfinance institutions do n’t ask much like banks and that they are friendly and good advisers in making business. By Seraphine Habimana

Partners and projects

CLECAM –EJO HEZA’s milestones in improving lives of the Southern Province inhabitants

his is a micro finance institution that provides credits to its clients. It is located in the Southern Province. Local population says that CLECAM EJO HEZA provided solutions to problems they were facing in their daily life. CLECAM EJOHEZA has five branches that provide loans for small and medium investments. It also provides saving services to its clients. The coalition of these branches is called UNICLECAM EJO HEZA. The Chief Executive Officer of the UNICLECAM EJO HEZA, Mr Merkias Dusabumuremyi says that the microfinance aims at promoting lending and saving to its clients in order to increase the investment and poverty reduction in rural area. residents. From Ingabo Farmers Syndicate to a Microfinance Institution The microfinance has been initiated by former Ingabo syndicate members who formerly provided advisory support to local farmers. The Ingabo syndicate members advised them to create a unique microfinance institution that was meant to allow them developing and growing financially. At the beginning, the local inhabitants assembled at a certain hill and gathered money for saving. Everyone brought 250 Rwf and the group chose who deserved such amount depending on who had a priority in farming project. The recipient of the money was to pay back the loan afterwards as the project was bearing positive fruits. In 2003, the National Bank called upon all the microfinance to start working professionally and therefore the members of this Ikimina (a cooperative to save money at village level) started to work professionally after being embodied into the CLECAM microfinance. The UNICLECAM is a result of the merge of CLECAM, and its neighboring UGAMA CSC was operating at the side but both cooperatives joined their efforts and made the UNICLECAM EJO HEZA in order to - increase their effectiveness in saving and credit provision. Now, the CLECAM EJOHEZA has more than 4,365 with a capital of 100 Million Rwandan Francs.

RWANDA MICROFINANCE | ISSUE NO. 2 | DEC 2013

Ease way of getting a loan To join UNICLECAM EJO HEZA, all you need is a share of Rwf 5000. In case you want a loan, The UNICLECAM assesses whether your account is operational and they analyse your business plan ... Priority is given to businesses that can create a lot of jobs to others and if the business can grow and pay back the loan. he loan is provided in two ways: - Loan for individual persons - Loan to groups Groups are made up by people who do not have enough assets to mortgage. This is the first philosophy of the UNICLECAM EJO HEZA to help low incomes generating people to access finance . Long term objective of the UNICLECAM EJO HEZA: The long term objective of the UNICLECAM EJO HEZA is to set up adequate means for its clients to save and grow financially putting focus on the farmers as people who first created the cooperative. Though working to leverage rural household’s income, some challenges arise; - Poor economic state of its clients, a significant number of credits allocated to farming projects exposed to risks as farming season depends on weather forecast, a relatively small operating capital that does not allow the bank to provide enough loans to all people in need and Need for regular trainings for staff so to update their knowledge on issues pertaining to their job. The UNICLECAM acknowledges an effective support from the Association of Microfinance Institutions in Rwanda.

By Daddy Sadiki RUBANGURA

Education for my children, a legacy of microfinance in Rwanda - Nikuze Prudencienne, EJO HEZA CLECAM CLIENT

ikuze Prudencienne lives in Kamonyi District, in Gacurabwenge Sector, she narrates benefits she has got by working with CLECAM EJOHEZA , a financial institution which took her to her current economic situation She said that after the Genocide against the Tutsi, her economic situation was worse adding that currently it has improved after utilizing a loan from CLECAM EJOHEZA. She said: “After having heard about the existence of the CLECAM, I quickly went to register with fellow women” Once a member of the CLECAM EJO HEZA, she asked for a loan of two hundred thousand Rwandan francs that she bought a cow that provided to her natural compost to invest in farming activities in her maize fields. The cow also provided her with milk to feed her children. After repaying her loan, Nikuze applied for another one of Rwf500.000 to build her house. Now that she has a house and a cow helping her in farming activity, Nikuze asked a third loan of three million Rwandan francs through which she acquired enough farming plot. By then she felt settled and started producing toward improved finance.Nikuze told the microfinance magazine that income gained from farming helps him to easily pay school fees for her children.

Nikuze is now considered as a successful woman in the neighborhood. The rest of women living in the sector are eager to imitate her in order to get rich and prosperous through the loan provided by the CLECAM EJO HEZA microfinance. Nikuze has been able to send her children to school at an extent that some have completed the university studies while even those who are still still in high schools are sure that they will enter university. Nikuze counts now a portfolio of Rwf 90 millions with a Rwf 2 million annual turnover.Her Nikuze witnesses that Microfinance institutions are faithfull to their mission of serving people unserved by classic banks: “I received a loan after five days from the application date. CLECAM clients have made a family sprit whereby if one faces challenges in financial areas, others provide support and advice.Nikuze plans to set up electric power installation in her house before the end of this month. CLECAM EJO HEZA is looking on new ways of serving their clients quickly.This includes embarking on ICT usage for a good and modern service delivery. Computerization is still a problem hindering the microfinance sector in Rwanda. By Daddy Sadiki RUBANGURA

Partners and projects

Umutanguha Finance Limited, a journey of transformation

he Union of Savings and Credit Cooperatives, UMUTANGUHA finance limited (UCU) announces the launch of five new branches after seven others currently in operation countrywide. Cyizihiro Ghislain, the financial director with UCU, declares the cooperative is expanding day after day, thus they are going to dispatch branches in different areas of the country. These new twigs will be set precisely in the Southern Province’s Nyanza and Nyaruguru district, in the Musanze district of the Northern Province. The Ngoma and Kirehe branches in the Eastern province will be launched as well. Cyizihiro adds that the Nyanza branch is opening this very soon as possible before others. He adds that they intend to go for people everywhere they are, especially for those abandoned by the high level micro finances. He said: “I prefer the most to work with short and medium enterprises because you experience people’s growth and this is very encouraging knowing where they come from”. The birth… The Union of Savings and Credit Cooperatives, UMUTANGUHA (meaning a never deceiving friend) was started by a Rwandan association of Widowers “ICYUZUZO” in 2003 whose main objectives were, among others, to be self-sustaining by carrying out income Generating Activities.

Furthermore they were intending to minimize donor dependence; and support rural widowers-orphans - widows’ access to financial services and financial literacy trainings. This microfinance’s operations started in 2004 having been registered as a single Cooperative of saving and credit organization. In 2008, it transformed into five Cooperatives and registered as a Union providing fully fledged financial services. UCU has been licensed by the National Bank of Rwanda (BNR) to operate all over the Country (Rwanda). In July 2013 it was transformed into Umutanguha Ltd. As explained by Cyizihiro, so far, the UCU is made of seven branches; two located in Nyarugenge district (The Nyamirambo and Nyabugogo branches) and the Rubavu branch in the Western province. It contains as well two more branches in Nyabihu district (Gasiza and Vunga), the Ngororero Branch and the Gasarenda branch in Nyamagabe district. In fact UMUTANGUHA plans to open other five blanches, Two in Eastern (Ngoma and Kirehe branchs) two in South (Nyanza and Nyaruguru) and one in Musanze district. From its opening, UCU has never ceased growing. As by August this year, Umutanguha had about 63 thousand and 3947 actives loaners, UCU has been engaged in microfinance since 2004. As explained earlier on, it has been transformed into six Cooperatives and registered as a Union providing fully fledged financial services in 2009. Currently, it is serving 31912 clients predominantly women and youth. The average loan size is USD 498,000 while the loan portfolio is USD 1.7 million, equivalently around 1,5 billion Rwandan francs, and savings deposits USD 862 thousand, equivalent to around 4,9 million Rwandan francs. UCU provides varied products tailored to meet the financial needs of the unbanked poor both in urban and rural areas of the country. UMUTANGUHA modes of boosting clients’ economy

Cyizihiro Ghislain, the financial director with UCU

The UCU has highly contributed to the improvement of its clientele via various Loan products, include solidarity group loans; different kinds of business loans; Youth Business Loans and Micro leasing.

RWANDA MICROFINANCE | ISSUE NO. 2 | DEC 2013

COOPEC Inkunga, a succes story of a community owned financial institution

OOPEC Inkunga-Microfinance is praised by people living in the Western Province due to its contribution in positively changing their lives. This Magazine talked to its Manager, Nsengimana Claudien, to give a portrait of this cooperative. Set up in 1993, by farmers who were exploring how to save the exceed of their harvest, the project was pushed forward until farmers decided to create a microfinance under the support of a private organization called AJEMAC. The cooperative started in Kibingo with 15 members with a share of 500 Rwandan Francs each. With the total amount of Rwf 7500,As o called IMBONEZABUKUNGU bank was launched in Kibingo.

One of the clients of Coopec Inkunga, thoroughly counting her money.

A similar Bank was established also in Rubengera and later the two were combined to become Coopec Inkunga Microfinance in September 1995. In 2005, the Kibingo and Rubengera COOPECS chose Rubengera to be the headquarter and by that year the COOPEC Inkunga was legally recognized by the National Bank and The Rwanda Cooperatives Agency as a microfinance institution.

Partners and projects

Recognized the Coopec as an operational center ready to work.Financial activities INKUNGA grew until building their working office in Rubengera.Now it has two branches; Rubengera and Kibingo.They are still facing some challenges relating to the availability of skilled accounting managers, having access to effective IT tools to use in its daily operations.

â&#x20AC;&#x153;Having one Million was dream that came trueâ&#x20AC;? Ngirabatware

The mission of this saving and Credit cooperative is to support rural people to become financially included. COOPEC Inkunga helps its clients to develop the saving habits and loans utilization : Our operational background of the COOPEC INKUNGA started with 1500 clients and now it has 10 000 clients. -The Microfinance has an operating capital exceeding 35 Million Rwandan Francs which by inception was 8 million Rwf.The annual loan provision rate reaches 1 Billion Rwandan francs, -The number of the loan recipients is now 3500 people, -Credits given to clients are now nearing 850 Million Rwandan Francs, The bank has 25 workers. microfinance operates in 15 sectors in Rutsiro District. The Manager of COOPEC Inkunga is happy that the bank has helped 4000 people to develop sustainable businessesand committed to double the speed though challenges prevail.Among them, - Small amount of money deposited, which hinders the microfinance from offering more loans. The microfinance also works with farmers a professional whose climate risks are abundant.

girabatware Dominique is a resident of Mukono Sector in Rutsiro Distrcit.Though it was a dream for him to own a million Rwandan francs, he has never though that it can turn into reality until he embrace the saving and credit culture with COOPEC INKUNGA. Before becoming a middle boss, he was a farmer who was able to feed his family of five. Later on he realized that to develop will require him to go banking. Ngirabatware opened an account in COOPEC Inkunga and started saving . After saving four times at the COOPEC Inkunga, Ngirabatware started processing a loan request of 150.000 rwandan francs, which he got few days after. He added that money to his savings and started a business shop. After paying the loan, he had one and a half million on his account.He asked a new loan of Rwf 250.000 to boost his business and paid it easily. After the second loan he had two million and a half on the account. Now he has an outstanding loan of three millions. He plans to ask five millions after and buy a car to ease his business. Ngirabatware is among the prosperous business person in Kibirizi Commercail Center with a business totaling more that five million Rwandan francs. Mr Ngirabatware sensitizes other local fellows to work with microfinance institutions as they are instituions having an eye for low and middle income producers clients. Daddy Sadiki RUBANGURA

Ngirabatware, in his shop and at Inkunga Coopec teller: he is convinced that his fortune originates from working with Coopec Inkunga. RWANDA MICROFINANCE | ISSUE NO. 2 | DEC 2013

CMF Umurimo: Facilitating access to financial services

ith the aim of facilitating access to financial services and enabling residents, especially those living in rural areas, to save and create income generating activities through loans, a union encompassing several savings and credit cooperatives in Rusizi and Nyamasheke district was created. Today the Union, known as Union des CMF Umurimo, operates a network of four strong microfinance cooperatives namely CMF Ngwino Urebe, CMF Umwete, CMF Tuzamurane, and CMF Twiteganyirize. In total, the four cooperatives have over 18 910 members as of 30th September 2013, according to Prisca Nyirabadage, the Union accountant. The Union is responsible of ensuring smooth collaboration and cooperation between the cooperative, devising strategies to ensure members’ constant growth and ensuring that each operates according to the law, among others. “The cooperatives have been very instrumental in boosting members’ welfare,” Nyirabadage says. “So many

individuals have been lifted from extreme poverty thanks to the coops’ various products which have inspired and continue to inspire positive change within the community.” Nyirabadage adds: “Many of those who get loans are investing in agriculture or livestock farming and it is impacting positively on their production and eventually on their lives.” As of September 30, the four cooperatives making up Umurimo had a gross loan portfolio of RWf732 million spread among 1744 members, according to Mukabadage. Mukabadage cites competition from commercial banks as one of the major challenges to local savings and credits cooperativs. “Some commercial banks are introducing products that derive from the Micro-finance operation system,” she says. “But what is important is we are adopting strategies to avert the competition,” she adds, noting that the cooperatives are well placed to continue prospering in the field as they remain closer to members and clients are considered as co-owners, which boosts their confidence and trust into the institutions. Other challenges include natural disasters, which particularly affect farmers production and eventually their ability to service loans and a few members who fail to timely pay back their loans due to several reasons. By Jean Pierre Bucyensenge

Today the Union, known as Union des CMF Umurimo, operates a network of four strong microfinance cooperatives namely CMF Ngwino Urebe, CMF Umwete, CMF Tuzamurane, and CMF Twiteganyirize.

Partners and projects

How working with CMF umwete helped Ndamuzeye kick poverty out of his life

VER since he started working with micro-finance institutions about six years ago, the life of Modeste Ndamuzeye realized a sharp turnout and quick transformation. The 38-year-old man, who had other times been struggling to provide for himself, experienced quick growth which led to an improvement of his living conditions. Though he had been part of local informal savings and credits groups since the early 2000s, it was until 2007 that Ndamuzeye achieved his dreams of increasing his productivity and improving his welfare.

“In many cases, such institutions are born out of residents’ initiatives and will and as we feel we are part of the endeavor, we have trust into such institutions,” he explains. “We invest efforts, skills and resources in these institutions and so we feel we are part of them. And above all, as members we have a word in what they do.” Climbing the ladder The resident of Cyarukara cell in Muganza sector, Rusizi district says he has struggled for years without really attaining what he wanted.

At that exact period, Ndamuzeye wanted to transform his agriculture to make sure he increases his production for him to be able to survive.

At first, in the mid-90s, Ndamuzeye survived by working in other people’s farms though the daily wage he was receiving was very little to respond to all his basic needs.

He then approached CMF Umwete, a local savings and credits cooperative, for which he was a member and sought a loan to finance his activities.

Later in the early 2000s he joined hands with a few other residents in the quest towards improved life conditions through informal savings groups.

In the beginning,. Ndamuzeye thought it wise to start seeking little money and then continue increasing the amount as the production increases.

The groups relied entirely on members’ contributions and mutual trust. However they lacked a proper vision and official recognition to operate properly according to the law.

So at first he secured Rwf 50 000 in loans from the cooperative, which he used to buy fertilizers for his crops.

The groups were later to be merged into one cooperative and since 2997 Ndamuzeye has been a member of CMF Umwete, a local savings and Credits cooperative with presence in 12 sectors in the districts of Rusizi and Nyamasheke, Western Province.

“The reason I chose to work with such cooperatives is because they are closer to us and part of our local community,” Ndamuzeye says.

Ndamuzeye praises Microfinance as his life saver

RWANDA MICROFINANCE | ISSUE NO. 2 | DEC 2013

Ndamuzeye, who says he has never worked with any other financial institution except for MFIs, attributes his current growth and achievements to working with savings and credits coops. Apart from learning how to properly manage his money and limit unnecessary spending, Ndamuzeye has also benefited in terms of loans which he uses in his agriculture and cattle keeping activities. “I have successfully secured loans from the coop on several occasion,” Ndamuzeye says, attributing all his achievements to working with the institutions. “Everything I have, whatever I have achieved is a result of the relations I entertain with the cooperative,” Ndamuzeye says. “Whenever I need a loan I do not encounter difficulties because whenever I borrow money, I invest it and use part of proceeds from my investment to pay it back.” Two years ago, the father of three borrowed Rwf500 000 which he supplemented with his savings and bought Rwf 750 000 Friesian cow he still rears today. The cow has today given birth to a calf, thus allowing Ndamuzeye’s family to get milk Prior to that, Ndamuzeye had used the loans he secured to invest in agriculture, especially in rice and maize farming. The man says every season, he gets at least Rwf2million from rice farming. Among his assets include among others domestic animals, land and a motorcycle that he uses in his activities. “From almost nothing, I can see that my socioeconomic condition continues to improve and I look forward to continue improving it,” Ndamuzeye says. The father of three says the secret to social welfare belongs in one’s capacity to work hard and work with financial institutions. “First you have to manage well your resources and avoid wasting your money. Then, whenever you secure a loan you should make sure you service it back according to agreed terms,” Ndamuzeye advises. “Savings set the foundation for one’s future.” By Jean Pierre Bucyensenge

COOPEC Inzira

Sowing the seeds of prosperity

hen Inzira Savings and Credit cooperative (COOPEC INZIRA) was created about ten years ago, some people doubted of its capacity to prosper and grow into a well-established entity. The cooperative which was born out of informal savings associations sought to encourage members to save and plan for the future. At the beginning, the informal savings groups were generally made up of four individuals and received support from a German Non-Governmental Organization, PISTE. So when the organization announced the end of its support and that it encouraged beneficiaries to come together and continue with the initiative, many of them doubted of their capacity to continue moving on and they decided to quit. But 92 resilient individuals accepted to take things into their hands and came together in what they later called Inzira cooperative-which name is synonymous to ‘PISTE’, a French word meaning pathway. The first days of the cooperative were the most stressful as members had to organize, set a committee and start managing their assets without prior experience in management, according to officials. But they did it and did it well, says Delice Umugwaneza, the Coop Manager and one of its founding members. “Even when other savings cooperatives and micro-finance institutions (MFIs) were hit by worst crisis and that they were ordered to close we survived,” Umugwaneza says proudly. In 2006, Rwanda Central Bank realized that several MFIs were undergoing financial crisis and that they had suspended deposits payment with the risk of the crisis extending to the entire microfinance sector. So, it decided to close some majors MFIs after it noted poor management practices, important losses caused by poor internal organization, mismanagement of their loan portfolio which caused significant difficulties in loan and the loss of confidence amongst the general public towards the

Partners and projects

Mukabera Immaculee: institutions, among others. Within two years, between 2004 and 2006, the Inzira cooperative’s assets doubled-growing from Rwf10 million to 20 million. Achievements Within the last ten years, COOPEC Inzira has been very active in changing the lives of its 2500 members. From only one employee when it started, the cooperative currently employs about ten people on a permanent basis. According to Umugwaneza, members have been encouraged to save while also being facilitated to get loans for investment in income generating projects for their own growth. Since the cooperative came into existence, hundreds of millions of money has been given out to clients in forms of loans to give them a chance to transform their lives, Umugwaneza argues.

A decade of growth

or the last ten years or so, Immaculee Mukabera has been a member of a local Micro-Finance Cooperative. At first, she joined a savings and credit group in her home village which later evolved and was turned into a saving association. In 2004, she was among the individuals who created Inzira Savings and Credits cooperatives and has been its member ever since. Mukabera, who deals in clothes and home utensils, owns a large stand at the first floor of Huye city market complex in Butare town, Huye district of the southern province. Mukabera, who resides in Tumba sector, says she doesn’t remember how many times she has secured loans from the cooperative. What she remembers is that she has borrowed money from it ‘on many occasions’ and that the loans helped her to grow. The mother of three also doesn’t remember how much money she has received-she says it is a lot.

As a matter of example, 217 individuals acquired over 102 million Rwandan Francs in loans through the cooperative which they used to invest in several sectors, including mainly agriculture, livestock farming and retail businesses. In 2012, the cooperative offered over RWf165millions in loans to 242 individuals while since the beginning of this year over 289 people have so far secured loans worth over Rwf100millions.

“I always injected the money in my business,” she says. “That helped me in my endeavors to keep diversifying my products and improving my welfare.”

“The loans have allowed our members to improve their welfare while at the same time stimulating local investment,” Umugwaneza argues.

“Before, I feared loans because I thought they might ruin my business. But rather I now fully understand that they help one to grow,” she says, as she sits in the middle of her shop sometimes interrupting our interview to attend to clients.

One of the individuals who have been benefiting from the coop’s loan products is Sylvain MUgorozi, a 32-year-old electronics dealer in Huye district. Mugorozi has been working with the cooperative for the last five minutes and has received over Rwf3.6 million in loan over the same period. “The money has allowed me to extend my business,” Mugorozi says from his stand in Huye city market complex. “I invested it in my business and the proceeds I got allowed me to grow my business, gain much interest, service back the loan and provide for myself and family.” By Jean Pierre Bucyensenge

From running a small shop that dealt in second hand clothes, Mukabera grew to become one of the major traders of clothes and home utensils in Huye market. Mukabera says working with savings cooperatives gave her the foundation towards improved living conditions.

The woman says she has increased her capital and eventually proceeds from her business thanks to working with the microfinance institution. She now has the capacity to provide to her family and respond to their needs, she says. “The reason I prefer working with these cooperatives is because it takes me less time to secure a loan than the time I would spend to get the same amount of money from a commercial bank,” Mukabera insists. By Jean Pierre Bucyensenge

RWANDA MICROFINANCE | ISSUE NO. 2 | DEC 2013

Faustin Zihiga (outgoing) handing over to JMV Nzagahimana(in-coming ), looking on is Eric Rwigamba from MINECOFIN

Meet amir new leadership after October 25th, 2013 handover

ean Marie Vianney NZAGAHIMANA, the Umwalimu SACCO (Teacher’s SACCO) board chairman, takes over from Faustin ZIHIGA as AMIR President NZAGAHIMANA, who is also the Rwanda College of Tourism lecturer and Umwalimu SACCO boss, was elected during AMIR General Assembly on October 11 in Kigali.

Nzagahimana promised to work with all stakeholders, including the government to secure adequate funds for micro-finance institutions for on-lending to the members.

Denyse MUREBWAYIRE was elected the vice-president, while Callixte KALISA is the secretary. Merchias DUSABUMUREMYI and Jean Louis MUSONI were elected advisors to the association.

Eric RWIGAMBA, the Director general of financial sector in MINECOFIN witnessed the Hand Over .While addressing the team on behalf of the Minister, he challenged them to work hard as they have a backup from the government. “Now you have government and partners support, your task is to show us performance especially in product development” Rwigamba said.

While handing the tools of office to the new group, Zihiga urged them to take financial services to the rural populace. “We have given you a strong foundation, so there is no reason you should not steer this association to economic success. The country is looking up to you to make it’s growth strategy a reality,” he noted. “The challenge of limited finance, low skilled manpower, coupled with lack of innovation and investment in research and advocacy are still hampering our progress and need to be addressed urgently,” he implored the new leaders.

“We will bring everyone on board because it is only when we work as a team that we can succeed. Our emphasis will also be on extending financial services to remote areas, where we have not yet reached,” Nzagahimana told the general assembly.

The new leadership comes at time when micro-finance institutions’ total portfolio risk improved from 12 per cent down to 8.5 per cent. According to the 2012 Annual Report on Microfinance Institutions, the sector doubled its financial inclusion performance from 21 per cent in 2011 to 42 per cent in 2012. Informal inclusion increased from 39 per cent to 58 per cent, with the overall financial inclusion increasing from 48 per cent in 2008 to 72 per cent last year.

Inculcating financial education skills to young Rwandans for a better future

Dr Vincent Biruta launching the 26 projects funded by DFID through MINEDUC. Photo-Damascene

 AMIR received funding from UK Government through DFID and Ministry of Education to implement a financial education project as an innovation for education in Rwanda. Through this 3-year project has started training 500 primary school teachers to coach 30000 pupils of their respective schools on child and social financial education.  The same recipient of the funding is Urwego Opportunity Bank, a member of AMIR and has channelled it to AMIR for implementation. In this project AMIR has started training 80 teachers who will train 1200 Children in their schools.  AMIR has received another funding from RABOBANK to implement a financial education project. This project has started in March 2013 to train 145 teachers who will teach courses of child and social financial education to 10,500 pupils of their respective schools in 3 years

 The child and social financial education methodology is designed by Aflatoun, a Netherland based NGO experienced in financial education. The methodology is transferred to more than 500 teachers in schools in rwanda to impart it to their pupils.  AMIR has earlier in 2011 partnered with German Savings Banks Foundation for International Cooperation-SBFIC to educate children on school savings culture.  This continuous AMIR-SBFIC project has so far registered more than Rwandan francs 141 million savings from 28906 children saving accounts.

Teachers in Aflatoun’s training on child social and financial education.

Children in AMIR-SBFIC project have opened 28906 accounts and saved more than Rwandan francs 141 million.

End results...  Children learn to save, budgeting and planning, savings and spending, creation of social and financial enterprises and then get skills and knowledge on having access to MFIs  AMIR will link all participating students with neighbouring MFIs – Imirenge SACCOS – to open savings accounts( group savings through clubs and /or individuals savings accounts)  AMIR realised a gap in current curriculum of social studies and entrepreneurship so , AMIR will discuss with the MINEDUC and MINECOFIN to see if those curriculums can be adopted and include financial education

Association of Microfinance institutions in Rwanda Mission Offering diversified Services to MFIs and to the sector at large that enable them to work professionally and contribute efficiently to poverty reduction in a sustainable manner. Kacyiru/ KIGALI | Police Headquarter Road | Country: Rwanda | P.O. Box: 6526 | Tel: +250 787859358 Email: info@amir.org.rw | Twitter: @AMIR_Rwanda Website: www.amir.org.rw