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Rwanda’s Financial Sector Sees Significant Transformation

Kigali, Rwanda - The Rwandan financial sector has undergone significant transformation in recent years, with notable declines in poverty and extreme poverty rates.

Poverty and Extreme Poverty Rates Decrease

According to the 2013/14 Integrated Household Survey (EICV4), poverty has decreased from 45% in 2010/11 to 39%, while extreme poverty has dropped from 24% to 16%. The survey also reveals that the proportion of the population dependent on subsistence agriculture has decreased from 71% to 70%.

Rwandan Financial Sector Development Programme (FSDP)

Launched in 2006, the FSDP aimed to develop a stable and sound financial sector capable of efficiently mobilizing and allocating resources to address the development needs of the economy and reduce poverty. The program has achieved significant milestones, including:

  • An increase in non-farm jobs from 17% to 20%
  • Improved access to savings accounts, with 54% of households now having at least one savings account, up from 36% in previous years

Commitment to Financial Inclusion and Poverty Reduction

The government has implemented several policies and regulations to achieve financial inclusion and reduce poverty, including:

  • Establishment of a Credit Reference Bureau
  • Loan guarantees for small businesses
  • Financial education strategies

These developments are seen as a testament to the country’s commitment to achieving financial inclusion and reducing poverty.

FinScope Survey Insights

The FinScope survey, conducted by FinMark Trust, has been instrumental in providing credible financial sector information to guide policymakers and regulators. The survey provides insights into how individuals generate an income and manage their financial lives, identifying factors that drive financial behavior and those that prevent individuals from using financial products and services.

Financial Inclusion Goals

The government’s efforts to promote financial inclusion have yielded results, with the 2012 FinScope survey showing a doubling of formal financial inclusion from 21% to 42%. The goal is to achieve:

  • 80% financial inclusion by 2017
  • 90% financial inclusion by 2020

Minister of Finance’s Statement

“This is a significant achievement for Rwanda’s financial sector,” said [Name], Minister of Finance. “We are committed to continuing our efforts to promote financial inclusion and reduce poverty, and we believe that these results demonstrate the effectiveness of our policies and regulations.”

Future Plans

The FinScope survey will continue to play a crucial role in monitoring progress towards achieving financial inclusion goals and identifying areas for improvement.