Assessing the Financial Impact of HIV/Aids: A Survey of Rwandan Credit Union Members

This report analyzes findings of a survey of credit union members in Rwanda, designed to learn how members are coping with the financial burden of health related expenditures. The survey was conducted in February and March 2004 at four credit unions of the Rwandan Credit Union Association.

The survey aimed to develop a socioeconomic profile of credit union members, assess their financial coping mechanisms with respect to health emergencies and characterize the financial behavior of member households that were affected by HIV/AIDS. Results indicate that, compared to non affected households, HIV/AIDS affected households:

• Are poorer, have less income or are in the process of asset liquidation;
• Have a greater tendency to save for the future and less use for credit;
• Report greater health related expenses;
• Rely more on savings and informal credit and less on formal credit to cope with unanticipated expenses.

The report suggests that credit unions could offer additional coping mechanisms to HIV/AIDS affected households, but should do so with caution given the weakened financial condition of these households. Further, donors and policymakers could expand HIV/AIDS funding to include support for community based financial institutions to help cope with the pandemic.