Building Inclusive Financial Sector in Rwanda ( BIFSIR)

What is the project about


Wowen becoming micro-entrepreneurs (Photo : UNDP/Elena Ganan)

The programme aims at contributing to capacity building of the various stakeholders at the macro, meso and micro levels, with a view of supporting the development of sustainable, quality and diversified financial services that are accessible to the less advantaged Rwanda, both in rural and in urban areas, and to improve the economic and social status.

  • Macro level  : Support the coordination and the regulatory framework of the sector, with a view to promoting financial inclusion in Rwanda;
  • Meso level:  Contribute to capacity building and to the consolidation of the sector, and develop the financial infrastructure in order to support the sustainability of inclusive financial services;
  • Micro level:  Support the professionalization of MFIs and innovations to promote sustainable access to financial services

Thus, the programme strategy will be to support the improvement of the regulatory and institutional framework, the strengthening of the National Association of Microfinance, and the professionalization of MFIs, including aspects related to the consolidation of small MFIs, financial transparency, risk management, as well as the strategic partnerships between banks and MFIs.

Programme beneficiaries are the IMF and Savings and Credit Cooperatives (SCCs) serving poor and low-income populations, especially women, micro-entrepreneurs and small family farms; environmental stakeholders (AMIR, BNR, CCNMF, FOREDEM, MINECOFIN); and the management bodies of the Programme (Steering and Investment Committees).

With a budget of $US 5 million over 4 years, the Support Programme for the NMS (BIFSR) is jointly funded by UNDP ($US 2,000,000), UNCDF ($US 2,000,000), and $US 1,000,000 to be mobilized. Funding for the Programme remains open to other donors interested in developing an inclusive financial sector in Rwanda to broaden access to financial services. With nearly 700,000 active customers in late 2008, microfinance providers can serve more than 200,000 additional customers by the end of 2012, bringing the number of beneficiaries at the end of the Programme to about one million.

The specific objective of the programme is to contribute to capacity building of the various stakeholders at the macro, meso and micro levels, with a view of supporting the development of sustainable, quality and diversified financial services that are accessible to the less advantaged Rwanda, both in rural and in urban areas, and to improve the economic and social status.

With nearly 700,000 active customers in late 2008, Microfinance sector providers can serve more than 200,000 additional customers by the end of 2012, bringing the number of beneficiaries at the end of the Programme to approximately one million.

The restructuring of Government institutions (rightsizing, redeployment and accompanying measures for retrenched staff) is carried out ;
The human resource development and capacity building policy is elaborated and approved;

  • Jobs description/classification and new grading system designed;
  • A new salary policy and scale is designed;
  • Performance evaluation tools and systems developed and approved;
  • ICT development (computerized pay system, registration etc) policy designed

Achievements in 2011

At macro level, BIFSIR contributed to the funding of the study that Access to Finance Rwanda (AFR) contracted with Oxford Policy Management (OPM) to undertake a critical study of the Savings and Credit Cooperatives (SACCOs) sector in Rwanda, which included developing a practical set of measures and an action plan to ensure SACCOs become fully sustainable financial service providers, especially to the rural poor. BIFSIR Investment Committee (IC) reviewed the application of BNR for funding and approved it with necessary changes to be made before disbursement. Shortly, a funding agreement was signed between BIFSIR donors and the Central Banks (BNR) to provide funding for strengthening the supervision of SACCOs established in line with UMURENGE SACCO program.

At meso level, BIFSIR/IC approved a multiyear funding for AMIR covering three years (2011, 2012, and 2013) and provided funds to AMIR to perform activities such as a support to C apacity building of AMIR that includes conference, seminars, training, exchange visit and CGAP training of the MFIs; a support to the establishment of an MIS for AMIR data collection and a Joint Financing of rating for MFIs. BIFSIR/SC also approved a support to BRD and provided fund for Refinancing of selected MFIs and Capacity building in favor of MFI Investees.

As a micro level, BIFSIR/IC approved funding of 200,000 USD to UOB for the implementation of mobile banking and agent banking among their clients and consequently, UOB received 100,000 USD for 2011 activities. BIFSIR also provided funds of USD25,000 to PAJER for linkage programme of VSLA’s financial services.

Who finances it



Donor Contributed amount
UNDP USD 2,000,000
UNCDF USD 2,000,000
UNCDF One Fund
USD      25,000

Total expenditures

Year Amount
2010
USD 507,895
2011 USD 1,127,232

 

Project overview
Status
Active
Project start date
Jan 2010
Estimated end date
Dec 2013
Focus area
Poverty reduction
Partners on ground
Ministry of Economic Planning and Finance(MINECOFIN), Banque National du Rwanda(BNR), Association des Microfinances au Rwanda(AMIR),Rwanda Cooperative Agency (RCA), Banque Rwandaise de Development(BRD), MFIs, TSPS
Responsible parties
Ministry of Economic planning and Finance MINECOFIN, Association des microfinances au Rwanda AMIR
Geographic focus
Country wide
UNDAF outcomes(GOAL 1)
UNDAF Outcome 5: Rwandan Population benefit from economic growth and is less vulnerable to social and economic shocks
Contacts
Desiderata Kayitaba
Programme Associate
desiderata.kayitaba@uncdf.org
Arthur Sabiti
National Project Coordinator
arthur.sabiti@uncdf.org
BIFSIR in UNCDF Website
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Annual reports