In a move to improve the effectiveness of Microfinance Institutions (MFIs), 50 industry practitioners are set to receive training in MFI management. Ten will become certified trainers.
The programme dubbed “Making Microfinance Work; Managing for Improved Performance” is designed under International Training Centre of International Labour Organisation for 24 modules.
The courses include, market and marketing, human resource management, risk management, customers service and general management.
Rwema Peter, the Manager of Refinancing, Research and Product Development in Rwanda Association of Microfinance Institutions in Rwanda (AMIR) said that 20 people were trained in the first phase, ten in the second phase. The third phase targets 25 people.
The course is organised in response to microfinance mismanagement and to help managers understand their job.
Rwema is optimistic that the programme will enhance effectiveness and efficiency in microfinance.
“This what AMIR is working on; to improve the performance and effectiveness of MFI’s in the country,” Rwema said.
The team is expected to make the industry work and meet the required skills such as giving better services to low income earners, reducing costs to their clients while they achieve their institutional needs.
“We are all looking forward to you, make microfinance a success”, said Faustin Zihiga, the Chairman Board Director of AMIR.
Zihiga was addressing the trainees in Muhanga last week.
The training is conducted in collaboration with the Ministry of Finance and Economic Planning, AMIR and the International Labor Organization (ILO).
According to the Central Bank’s monetary policy statement, consolidated financial position of MFIs total assets in the sector increased by 13.2 percent from December 31, 2009 to June 30, 2010 while equity has increased by 16.3 percent. Gross loans and deposits increased by 22.1 percent and 15.2 percent respectively.
However, it was mentioned that the performance of saving and credit cooperatives has been very poor.
“The performance of saving and credit cooperatives has been very poor and the trend of non performing loans within this category of microfinance institutions is very worrying and requires a Government intervention to rebuild the credit culture”, the statement said.