The recent statistics from the Central Bank show that about 421,000 Rwandans successfully borrowed from local banks in 2019. While this comes off as a small section of the population, less than the population of some districts in the country, it’s actually an improvement from the previous year when about 308,000 people received loans from local banks.

The shy numbers could be indicative of several market conditions which should be reviewed and curbed to allow the country to meet some of its development ambitions such as job creation and development of Small and Medium Enterprises.

Access to credit among the population allows for property acquisitions (such as homes), investment as well as more consumption in the economy.

It’s the disbursement of loans to ordinary Rwandans that would avail the much sought capital to start Small and Medium Enterprises that if successful would lead to job creation, more production and diversification.

The shy numbers in lending to the public among other things is indicative of the need to revise approach on increasing the bankable population which as of 2017 stood at 26 per cent according to a FinScope Study by Access to Finance Rwanda.

The numbers are also indicative of the limited efforts by banks to avail banking services to the general public most of whom are in the informal sector. Statistics show that efforts by a few (about 4) banks in creating digital banking services for previously unserved saw Rwf25.41B disbursed in digital loans in 2019 alone.

For a market with 16 banks, reaching ordinary citizens with products that are tailored to their characteristics would be a great leap for all involved not to mention national ambitions.