Financial Crime World

Compliance in Rwanda’s Finance Industry on the Rise, Says Ministry

Kigali - The Rwandan government has announced a significant improvement in financial inclusion in the country, with 93% of adults now accessing and using both formal and informal financial products. This is according to the 2020 FinScope Survey Report launched by the Ministry of Finance and Economic Planning in partnership with Access to Finance Rwanda (AFR).

Financial Inclusion Levels Vary Across Districts

The report highlights that levels of financial inclusion vary across districts, with Gasabo district recording the highest level at 99% and Rusizi district having the lowest at 83%. However, the survey notes a narrowing gender gap in financial inclusion, with only 8% of women excluded compared to 7% of men.

Key Statistics:

  • 93% of adults now accessing and using both formal and informal financial products
  • Gasabo district has the highest level of financial inclusion at 99%
  • Rusizi district has the lowest level of financial inclusion at 83%
  • Only 8% of women are excluded from financial inclusion, compared to 7% of men

Youth Remain the Most Financially Excluded

The survey notes that youth aged between 16 and 24 are the most financially excluded, with 18% not accessing or using financial products. On the other hand, 77% of the Rwandan population accesses and uses formal financial products, including those provided by banks, insurance firms, mobile network operators, microfinance institutions and SACCOs.

Youth Financial Inclusion:

  • 18% of youth aged between 16 and 24 do not access or use financial products
  • 77% of the Rwandan population accesses and uses formal financial products

Digital Financial Tools Gain Momentum

The report also notes that the proportion of adults who are banked has increased to 36%, with a growth of 1.1 million since 2016. Additionally, 25% of banked adults now use digital financial tools, up from 6% in 2016.

Digital Financial Tools:

  • 36% of adults are now banked, up from 35% in 2016
  • 25% of banked adults use digital financial tools, up from 6% in 2016

Government Efforts and Future Targets

Dr. Uzziel Ndagijimana, Minister of Finance and Economic Planning, attributed the improvement in financial inclusion to government efforts to remove systemic barriers to access. He urged all stakeholders to continue working towards achieving 100% financial inclusion by 2024.

Government Commitment:

  • The Rwandan government aims to achieve 100% financial inclusion by 2024
  • Ongoing efforts will focus on removing systemic barriers to access

Conclusion

The FinScope Rwanda survey provides valuable insights for policymakers, regulators and financial service providers, helping them identify areas that need attention and track progress towards achieving financial inclusion targets.