Rwanda’s Umurenge SACCO network has long been a lifeline for financial inclusion, especially in rural areas. The programme, launched in 2009, brought formal savings and credit to each of the country’s 416 sectors. Today, about 28% of adults belong to an Umurenge SACCO, down from 36% in 2020. Over the same period, mobile money wallets have grown from 60% to 77% of adults. With mobile money on the rise, are SACCOs losing their hold on rural savers? ALSO READ: Interest rates in Umurenge SACCOs fall as consolidation nears completion Just 15 years ago, Rwanda had virtually no rural banking network. When the Umurenge SACCO programme was launched, membership boomed. When the programme began, enrolment was effectively zero; by 2020 roughly 36% of adult Rwandans (about 2.5 million people) had joined a SACCO. ALSO READ: What to expect from automation of Umurenge SACCOs By contrast, in 2020 about 60% of Rwandan adults owned a mobile wallet. Fast-forward four years, and the picture has flipped. Today nearly 86% of adults have used mobile money, and around 77% have a registered mobile wallet on their phone. That is roughly 6.9 million people tapping into digital cash. The change happened quickly; tower coverage expanded, phone prices fell, mobile phone financing services were introduced, and the nail in the coffin was the COVID-19 pandemic. During the pandemic people turned to mobiles to pay bills or send remittances safely and most people never went back. Now, even in some remote villages, shopkeepers accept payments via MOMO. ALSO READ: Rwanda achieves 96% financial inclusion for women, driven by mobile banking growth The rise of mobile money shows up in the data, and it has translated into a shrinking role for SACCOs and other financial institutions. A recent national financial inclusion survey (Rwanda Finscope 2024) found that SACCO membership fell to 28% of adults (about 2.3 million people) in 2024, down from 36% (about 2.5 million people) in 2020. In other words, hundreds of thousands of Rwandans have quietly let their SACCO memberships lapse or simply stopped using their accounts. ALSO READ: Youth financial inclusion soars to 94%: Key insights from AFR report This trend is not entirely surprising; if a farmer can receive crop payment on her phone and send school fees by a few taps, the walk to the SACCO office may lose its appeal. Yet, the story is far from settled. Umurenge SACCOs were not just financial outlets; they were woven into the fabric of rural life. Their advantages remain powerful in ways that mobile money alone cannot match. SACCOs provide dividends and interest on savings, unlike mobile money. They are rooted in the community, often located near clinics, schools or markets. As member-owned cooperatives, loans are guaranteed by neighbours, and oversight is local. Familiar tellers and face-to-face service build confidence, especially for older or less tech-savvy users. SACCOs also provide services designed around local needs—group savings for women, school fee savings plans, farming input certificates, and small emergency or agriculture loans. They serve as village payment points for government programmes. These community-informed products address gaps left by big banks and mobile wallets. SACCOs also provide financial education to their members, helping them make informed financial decisions. These strengths explain why millions still keep SACCO accounts. With mobile wallets now in almost every pocket, the dynamic between digital and brick-and-mortar finance is complex. Is mobile money a killer of SACCOs, an accelerant, or simply a signpost to the future? The answer seems to be all the above. Mobile money has significantly reduced SACCO foot traffic, as it did for other banks and microfinances. What once meant standing in line to send cash, make a deposit or pay bills now happens in a few taps. When all you need is basic saving or transfers, your phone always wins. On the other hand, not all is lost. Mobile money is becoming part of the team. Many SACCOs now serve as mobile money agents, turning their offices into cash-in, cash-out points. This keeps them in the loop as trusted hubs for digital transactions. For long-term saving or large transfers, people still value the security of an institution. Mobile fits in, not replaces, the bigger financial picture. The spread of mobile money has triggered SACCO leaders into action. It became clear that staying analogue was not an option. The government and partners are digitising SACCO operations, unifying platforms and consolidating 416 tiny cooperatives into about 27 district-level SACCOs. This scale-up aims to improve capital, efficiency and services—online accounts, eventually leading to ATM access and mobile apps. Where does this leave Umurenge SACCOs? Both competition and opportunity lie ahead. If SACCOs do nothing, they risk becoming ghost towns; digital financiers and banks might gradually take over. Yet in many ways, SACCOs still have an irreplaceable role. They are holding the last mile of Rwanda’s inclusion mission, especially in rural areas. Nearly half of SACCO members are farmers and most are from rural areas—precisely the groups that banks neglect. If SACCOs can adapt their delivery, they can keep serving these people even as the finance landscape digitises. Innovation will be key. We may see SACCOs integrate with mobile platforms fully. The real future may not be “SACCO versus MOMO,” but “SACCO with MOMO.” George Niyonshuti is a Senior Associate, Government and Public Sector, at PwC Rwanda. Anthony Njeeh is an Associate Director, Government and Public Sector, at PwC Rwanda.
