13 August 2014

Rwanda: Microfinance Banks Move to Foster Efficiency, Transparency

For anyone wishing to apply for a loan and has an account with a microfinance institution, it will now take a few procedures, thanks to a new computer application the Association Microfinance Institutions of Rwanda (AMIR) is implementing to ease operations.

According to Peter Rwema, AMIR Programmes Director, the application, known as performance monitoring tool, will enhance transparency and efficiency in loan application processing, and thus improve service delivery.

He said 16 micro-finance managers had already been trained to use software.

"The technology will also help create a one-stop data collection centre at AMIR headquarters in Kigali," Rwema said.

He was speaking during one of the training sessions of some microfinance institutions personnel in Kigali on Monday

He added that the project was being supported by the National Bank of Rwanda, Access Finance Rwanda and Small Enterprise Education and Promotion Network, (SEEP), a US-based organisation.

"The first phase of training and software installation is underway across the country. Accountants and IT department personnel across the sector will also be trained under the programme," Rwema said.

Microfinance is one of the sectors in the financial services industry whose operations have been largely manual. This initiative should, therefore, enhance service delivery to members and clients as well as ensure good governance.

Jean Damascene Hakuzimana, the Communication and Advocacy Officer at AMIR, said participants were being trained to use the software to monitor performance.

Central bank statistics for second quarter of 2014 indicate that the microfinance sector registered return on asset and return on equity of 0.6 per cent.

Total liquid assets increased from Rwf42.08 billion in 2013 to more than Rwf43.95 billion during first quarter of 2014.

This growth was mainly driven by the liquid assets and gross loans which increased by 27.2 per cent and 24.2 per cent, moving from Rwf33.1 billion to Rwf42.1 billion and Rwf59.2 billion to Rwf73.5 billion.


Common Wealth Forum Seeks to Break Down Gender Barriers

Although Rwanda continues to shine for its progress in gender equality and women empowerment, ignorance, cultural and… Read more »

Copyright © 2014 The New Times. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 1,000 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.