By June this year, the amount of money deposited with Savings and Credit Cooperatives (SACCOs) hit Rwf1.5 billion. This signals the great potential that lies within successful implementation of the Umurenge Sacco program – a government initiative that aims to increase access to financial services and boosting domestic savings.
While tremendous progress has been made, key challenges remain that if not addressed will undermine successful implementation of program.
For instance, some local leaders are not active in mobilizing the people to participate in the Umurenge SACCO program. They leave all the sensitization efforts of the local population to the employees of
More importantly, there is need to build confidence in local the population who feel SACCOs would end up running bankrupt and the operators disappearing with deposits as was the case with COOPECS.
Successful implementation of the program will not only mean more Rwandans have access to financial services but also boost domestic savings that are critical for investment.
The concept of Umurenge SACCO was initiated on the understanding that banks and other financial institutions are more concentrated in towns and less spread in rural areas to serve the poor. As such, establishing a SACCO at every sector (Umurenge) would bridge this gap.
Local citizens would thereafter be able to save; access loans and credit for different business activities, thus allowing them to invest and lift themselves out of poverty.
The idea, if implemented according to plan, will definitely meet its objectives and should, therefore, be collectively supported.