MFIs in drive to promote cashless transactions

The Association of Microfinance Institutions in Rwanda (AMIR) launched a new programme to promote cashless lending through micro finance institutions on Monday. The programme is designed to equip sector players with financial and technical skills in lending and credit management. According to AMIR’s Jean Pierre Uwizeye, the programme will avail the most innovative technologies and skills that will help promote the cashless economy. “Already more than 48 MFIs have embraced the programme and will soon be rolled out to all the 416 microfinance institutions across the country,” Uwizeye told The New Times. He added that the programme will help strengthen financial capacity and discipline among MFIs which will reduce cases of nonperforming loans. Uwizeye said the association is currently working with the finance ministry and Cardiff University to conduct vigorous training, coaching and technical assistance to credit institutions, especially those in rural areas. The association is also supporting more than 182 Umurenge -Sacco’s with financial education kits to boost their financial literacy. According to Blondel, Tumaini, the Director General, Amasezerano Cooperative Bank Limited, the programme is timely and will help boost credit to the private sector especially among the startups. “This is very important because government is counting on the private sector to drive the country’s second Economic Development and Poverty Reduction Strategy (EDPRS2),” he said. Rwanda’s microfinance sector’s total assets rose by 17.7 per cent from Rwf159.3 billion in December 2014 to Rwf187.5billion in June this year, driven by loans and liquid assets, which rose by 8 per cent and 37.4 per cent, respectively. Its deposits grew by 21.8 per cent, from Rwf86.1 billion in December 2014 to Rwf104.9 billion in June. However, the asset quality measured by non-performing loans ratio deteriorated slightly to 7.4 per cent in June, from 7 per cent end December 2014. business@newtimes.co.rw

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MFIs in drive to promote cashless transactions