Microfinance institutions in Rwanda continue to face challenges related to limited resources, affecting their ability to provide adequate services to clients. The Association of Microfinance Institutions in Rwanda (AMIR) has highlighted that despite these challenges, technology could provide a sustainable solution to address them.
During AMIR’s 16th General Assembly held on December 6, 2024, Jackson Kwikiriza, AMIR’s Chairperson, emphasized their commitment to innovation in tackling existing issues. He stated:
“We are working on capacity building to ensure members operate professionally. We also plan to establish a fund through which members can borrow money since most microfinance institutions lack sufficient resources to grant loans.”
Kwikiriza stressed the importance of leveraging technology, which offers opportunities to expand financial services and address client challenges without requiring them to travel long distances. He said:
“Our country is moving towards a technological era where individuals can access services without traveling kilometers to save money. We aim to embrace advanced technology while also addressing its challenges.”
The role of RSSB in supporting microfinance institutions was also highlighted, particularly through the SME Fund, which helps these institutions secure long-term loans at low-interest rates. This initiative is expected to enable institutions to expand operations, boost investment, and improve the livelihoods of many Rwandans who rely on financial services.
Currently, Rwanda has 457 licensed microfinance institutions approved by the National Bank of Rwanda (BNR), serving over six million people, many from rural areas. As technology continues to be integrated into financial services, it will simplify processes such as saving, loan applications, and account management through mobile phones or computers, reducing the need for physical travel to access services.
AMIR’s vision is to support microfinance institutions in adopting technology to continue improving the well-being of citizens by offering faster, more affordable, and secure services.
To address existing challenges, AMIR plans to enhance the capacity of its members and encourage them to innovate effectively. This will help microfinance institutions transform their operations, provide efficient services to more people, and drive sustainable development.
