Musanze —The Governor of the Northern Province, Aime Bosenibamwe, has urged sector leaders in the region to use Savings and Credit Cooperatives (SACCOs) to accelerate development by mobilising residents to get credit for private investment.
He was addressing sector executive secretaries and vice mayors in charge of economic development, from all the districts of the province.
The local leaders had gathered to present reports on the performance of the savings and credit cooperatives, challenges and investment promotion.
All sectors in Gicumbi and Burera districts raised between Rwf10 and 50 million, the amount recommended by the National Bank of Rwanda (NBR), before giving out credit to clients.
“Investment at the local level is still low,” Bosenibamwe complained. “We can only bring about development if we mobilise and guide communities on accessing credit for investment. It will raise the GDP and family incomes; this should the priority for local leaders.’’
Sector leaders cited lack of infrastructure for SACCOs, lack of security for the money being collected, during its transfer to various banks, and lack of commitment by leaders to mobilise residents to join SACCOs, among the main challenges.
Musanze and Rulindo were reported to be the districts with small membership levels, and little amount of savings.
“We had strong mobilisation in all sectors; we agreed that all the money from the district and from other activities be channelled through SACCO. When over Rwf3 million was stolen we had to find ways of refunding it in order the regain confidence from residents,’’ Joseph Zaraduhaye, the vice mayor of Burera said.
Last year, in Base Sector, a SACOO accountant reportedly disappeared with over Rwf4 million, while in Mugunga, there is no corresponding amount as registered from the members.
The Financial Access Forum, which is composed of district leaders, was tasked to guide SACCOs on making proper business plans and accessing credit facilities.