Financial Crime World

Rwanda’s Financial Inclusion Project Sees Success in Reducing Crime

Kigali, Rwanda - A financial inclusion project aimed at promoting long-term saving schemes and reducing financial exclusion has yielded impressive results in Rwanda.

Closing the Financial Inclusion Gap in Rwanda (CFIGR)

The CFIGR project, implemented by CARE and the Ministry of Finance and Economic Planning (MINECOFIN), has contributed to a significant reduction in crime rates. From September 2019 to April 2022, the project aimed to improve financial literacy levels, increase access to affordable financial services, and promote digital payments among financially excluded individuals.

Achievements

The project achieved impressive results, with CARE’s financial inclusion work now covering 30 districts through 15,053 village agents supporting over 39,776 village savings and loan groups. The project has mobilized around RWF 25 billion (approximately $25 million USD) in total savings and has disbursed RWF 22 billion (approximately $22 million USD) in cumulative loans.

Organization of Financially Excluded Citizens

Additionally, 440,036 financially excluded citizens, including 71% women, have been organized into 17,088 village savings and loan associations.

Promoting Long-Term Saving Schemes

The project’s focus on promoting long-term saving schemes through the EjoHeza scheme has also yielded impressive results. To date, 225,293 VSLA members, including 70% women and 21% youth, have registered in the scheme, with 197,151 active savers contributing FRW 1.43 billion (approximately $1.4 million USD) annually.

Innovative Approach

Experts attribute the project’s success to its innovative approach, which included integrating long-term saving schemes into financial literacy manuals and training master trainers with digital materials. The project also received additional support from the United Nations Capital Development Fund (UNCDF), which equipped 416 master trainers with tablets and animated videos to help mobilize and register LTSS payments.

Impact on Crime Rates

The project’s impact on crime rates is significant, as financially excluded individuals are more likely to engage in illegal activities due to lack of access to financial services. The project’s success in promoting financial inclusion has contributed to a reduction in crime rates, making Rwanda a safer country for its citizens.

Sources:

  • CARE and MINECOFIN reports
  • UNCDF