Business

Umurenge SACCO: The best way to fight poverty

  • By Dias Nyesiga
  • May 10, 2011

In Umurenge Savings and Credit Cooperatives (SACCOs) Rwanda has the best strategy at its disposal to alleviate poverty through promoting financial inclusion for the rural people, a senior official said.

“There is no doubt Umurenge SACCOs is the only way to achieve the political commitment of increasing financial inclusion fro all to 80 percent by 2017,” the outgoing central bank Governor, Francois Kanimba, said , Friday, while presiding over a ceremony to close a training for SACCO inspectors.

The inspectors who will be placed at every district are supposed to monitor and ensure that the SACCOs commit to the objectives they were established.

The Umurenge SACCOs were established among others things to boost rural savings and help the rural poor acquire loans from their savings.

Kanimba, who was on Friday appointed the Minister of Trade and Commerce in a cabinet reshuffle said that last government retreat tasked central bank to strengthen SACCO establishment which have been awash by management problems that have retarded their objectives.

“Our expectations from inspectors from the inspectors very, very high, one of their assignment is to be sure that the implementation of Umurenge SACCO programme is collected safely and successfully,”

The inspectors, according to Kanimba, are also charged with devising means of ending the non-performing (NPL) loans in the microfinance institutions.

The high NPL, which are loans in default or close to being in default, are believed to be one of the major challenges for the microfinance industry, which led to the closure of so many MFIs in the country in the recent past.

The Senior Private Sector Development Specialist in the World Bank, Lucy Mamganga Fye, said that the training and deployment of inspectors indicates an informed decision the government has taken to achieve its commitment of financial inclusion for all.

“Apart from regulation and inspection, it is your responsibility as central bank to make sure that programmes put in place meet their goals they are set up,” she said

Isaac Hagenimana, who represented the inspectors, showed the inspectors commitment to perform their duties diligently.

“We are going to make sure that SACCOs recruit qualified staff, ensure that al elected organs are operational and are working towards the achievement of SACCOs objectives,” he said.

Ends


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