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Rwanda economy

Financial Inclusion Up Close in Rwanda

Douglas Randall's picture

You don’t have to spend very long in Rwanda before you start to be impressed by the financial inclusion landscape in this country – not only by the progress made over the past several years, but by the scale of ambition for the rest of this decade and beyond.

The government has set a target of 90 percent financial inclusion by 2020 and the evidence of progress toward this goal is everywhere: Advertisements for mobile-money products are painted and plastered onto almost every available surface and, if you know what to look for, it doesn’t take long to spot an Umurenge Savings and Credit Cooperative (Umurenge SACCO) – Rwanda’s signature financial inclusion initiative.

Six years ago, the 2008 FinScope survey found that that 47 percent of Rwandan adults used some type of financial product or service, but just 21 percent were participating in the formal financial sector, which was at the time made up mostly of banks but which also included a handful of microfinance institutions and SACCOs.

Largely in response to these figures – and in particular to the large urban/rural divide illustrated by the data – and the government set out to establish a SACCO in each of the country’s 416 umurenges, or sectors. The Umurenge SACCO was born.

Rwanda: Resilience in the face of adversity

Birgit Hansl's picture

In times of regional and global turbulence, Rwanda’s economy has demonstrated remarkable resilience. A new Rwanda Economic Update shows why.

In 2011, growth will reach 8.8 percent, inflation has been contained below 10 percent and the exchange rate remains stable. This economic resilience reflects sound macroeconomic management.

Rwanda’s growth prospects for 2011 compare favorably with others in the region, but this outlook is contingent on three factors.  First, prudent macroeconomic management continues, inflation is at single digits and the exchange rate remains stable. 

Seeds for Higher Growth in Rwanda

Birgit Hansl's picture

Rwanda’s economy is growing at a healthy rate--7.5 percent in 2010, two percent higher than the East African Community (EAC) and even more than Sub Saharan Africa (SSA).

During 2010, the services and industrial sectors progressed in their recovery, while growth in the agricultural sector slowed down marginally.  The country’s macroeconomic framework was remarkably stable, given the difficult external post-crisis environment and Rwanda’s position as a highly import-dependent, land-locked country. This was mainly achieved through a prudent fiscal stance with strong focus on priority expenditures, assisted by continued grant financing from donors.