The Business Development Fund (BDF) has called for a shift in mindset among Savings and Credit Cooperative Societies (SACCOs) to enhance financial service delivery and broaden access for Rwandans. Vincent Munyeshyaka, CEO of BDF, stressed the need for SACCOs to prioritise direct service to citizens rather than deferring them to BDF. He voiced concerns over inefficiencies in some SACCOs, which hinder their ability to support the population effectively. SACCOs must improve their services and provide essential information directly to citizens instead of simply referring them to BDF, Munyeshyaka said, highlighting gaps in service delivery. He also raised concerns about the reluctance of some SACCOs to participate in the Economic Recovery Fund (ERF), a government initiative designed to support businesses affected by the COVID-19 pandemic. According to Munyeshyaka, this hesitation presents a significant challenge to financial support for Rwandans. Some SACCOs have inexplicably opted out of the ERF. Stronger collaboration among financial institutions is essential to ensure broader access to financial services, he emphasized. We are all working toward the same goal—expanding financial inclusion in Rwanda. This requires joint efforts and a shared understanding of financial management and service delivery. Ultimately, our collective commitment is key to achieving optimal financial inclusion nationwide. BDF’s assessment of its partnership with SACCOs revealed challenges such as poor service delivery and resistance to change among some SACCO managers. As BDF CEO, my recommendation to SACCO managers is this: let us pool our resources and efforts to increase the number of beneficiaries, Munyeshyaka urged. Immaculé Uwingabiye, manager of Imparanirakurusha SACCO in Murambi Sector, Karongi District, acknowledged the challenges posed by new programs and their impact on SACCO performance. She called for additional training, stating, We recommend further training on these new programs designed to support socio-economic development. Aimable Mutesa, manager of Intarutwa SACCO in Rugerero Sector, Rubavu District, echoed the need for training, emphasizing its importance in improving financial service delivery and contributing to national and community development. The Economic Recovery Fund (ERF) was launched on June 8, 2020, to assist businesses severely affected by the COVID-19 pandemic, enabling them to recover, resume operations, and retain employees. The Central Bank channels these funds to commercial banks, microfinance institutions, and SACCOs, which then lend to eligible businesses across the country. Between 2020 and 2021, Phase I of the ERF supported 6,742 projects with over Rwf 6 billion, according to BDF. From 2022 to 2024, Phase II financed 2,223 projects with nearly Rwf 8 billion. As of now, BDF has secured an additional Rwf 5 billion, set for disbursement between January and July 2025, as part of the Rwf 30 billion allocated by the government for Economic Recovery Fund Phase III.
