The government through Rwanda Development Bank (BRD) has opened a credit fund worth Rwf12 billion to develop the Micro-Finance Institutions (MFIs) for a period of five years.
The credit fund that was adopted by the cabinet last year and has become operational this year will provide an opportunity to the MFIs to acquire loans that will be availed to the clients, and help in capacity building.
“In the same effort to deliver improved service and develop this financial sector, we have trained 467 people in capacity building,” said Faustin Zihiga the chairperson of the Association of Micro-finance Institution in Rwanda (AMIR).
During the 4th general assembly that was held on Monday at Hotel la palisse, Zihiga said that the aim of AMIR is to improve efficiency, capacity building and building trust among the members of the association.
The microfinance association currently has got 94 members out of which 88 are active members.
The institutions have also been educated on corporate governance, accounting, financial analysis, credit analysis and business planning.
The credit fund comes to compliment the government initiative of Umurenge SACCO a credit and saving cooperative in every sector that will avail an opportunity to the rural people to access loans.
“We are also concerned with increasing the membership, promoting innovations, transparency and attracting donors,” explained Zihiga.
The criteria for joining the microfinance association include certifying with the National Bank of Rwanda.
For the saving and credit cooperative, the minimum start up capital is Rwf5 million and the limited liability companies the minimum capital is Rwf300 million.