ROLE OF MICROFINANCE SERVICES ON POVERTY REDUCTION IN RWANDA A CASE STUDY OF SACCO ICYEREKEZO KINYINYA PERIOD: 2020-2023

Abstract

The purpose of the study is to analyze the role of saving and credit cooperatives on poverty reduction of its members where the people who had sufficient foods had been increased from 27.0% to 41.0% and the insufficient foods had been decreased from 68.0% to 0.0%. The people interventions of loans from SACCO ICYEREKEZO KINYINYA to the foods problems resolution. One of respondents said that “before joining SACCO ICYEREKEZO KINYINYA, I could not buy meat for my children, but now it is our food.” As many studies have shown, in Africa children who eat healthier tend to healthier which has a positive effect on socio-economic development of its members. Before getting the loan, 15.0% of the respondents from the sample said that was to build their owner house but after getting services from SACCO ICYEREKEZO KINYINYA 39.0% of respondents was able to build their owner house, 81.0% of respondents rented house before getting credit while after getting credit the Frequency who live in rent reduced at 15.0%, while credit received from SACCO ICYEREKEZO KINYINYA helped them to repair their house and 14.0% of respondents was able to repair their house while after the number of repairing increased up to 36.0%. This means that services obtained from this SACCO help its members to access water supply and electricity. One of respondents said that “Water can save lives, but it can also kill people. Access to clean water is a requirement for survival and for health; however, a lot of Rwandans drink unsafe water every day, which results in epidemic diseases in our communities. Before joining SACCO ICYEREKEZO KINYINYA on monthly basis, Based on the findings and analysis, the following suggestions can be made,Sacco Icyerekezo Kinyinya should think and ask BNR to revise the interest rate scheme to an affordable rate so that clients can be able to access loans since the study revealed that high interest rate is limiting lower income from applying for loans.It is recommended to Sacco Icyerekezo Kinyinya to offer discounts of a certain amount from the loan to customers who meet their repayments schedule so as to encourage prompt loan repayment.Sacco Icyerekezo Kinyinya should assist the owners of small businesses in getting loans. It should simplify the procedures associated with loan acquisition.They credit committee and the management team should teach the beneficiaries of Sacco Icyerekezo Kinyinya loans on how to create small business projects generating income in order to increase the number of those who overcome poverty.The government should finance the Umurenge Saccos because only the deposits of the members cannot finance by grating loans to all members.