Rwanda Microfinance Sector Assessment 2005

This document is an assessment of the developments in the Rwandan microfinance sector for the year 2005. The report commences with a brief backdrop of the microfinance sector in Rwanda and goes on to profile the country in terms of:

• Political environment and demographics;
• Macroeconomic development;
• Composition and performance of the financial sector.

The assessment report examines in detail the microfinance sector development in Rwanda by studying the following aspects:

• Life cycle stage of the sector which is indicative of the maturity of the sector;
• Demand for microfinance, profile of clients and uses of credit;
• Microfinance suppliers, area of service coverage, outreach and various institutional forms of service delivery that include:
  • Savings and credit cooperatives;
  • Credit only MFIs;
  • Banks that provide microfinance services;
  • Informal finance.

The document sums the overall institutional capacity of the sector and goes on to examine the effectiveness of government policies, legal and regulatory framework, and other sector infrastructure to access the same through variables such as:

• Network association;
• Technical assistance providers;
• Audit firms;
• Credit bureaus;
• Research institutes;
• Wholesale microfinance;
• Donor funding.

The document concludes with a study of the challenges and opportunities and strategies for sector strengthening to improve the synergy between stakeholders, efficiency and sustainability of the sector and broaden and deepen outreach.