The Transparent Pricing Initiative in Rwanda has published standardized pricing data from 14 microfinance providers, representing an estimated 90% of Rwanda’s microloan borrowers. Launched in 2011 the Initiative is delivered in partnership with Planet Rating and AMIR (Association of Microfinance Institutions in Rwanda), and is funded by the MasterCard Foundation.
Microfinance in Rwanda The formal Rwandan financial sector has a low penetration ratio and informal financing activities are popular, such as the small self-help peasant organizations (tontines and ibimina) used for agriculture, cattle breeding and the purchase of domestic equipments. The support of microfinance by the government of Rwanda and the international donor and relief community after the 1990s conflict has been a critical factor in the creation of access to finance for Rwanda’s population. The microfinance sector has achieved a speedy growth in terms of outreach and volume of gross loan portfolio, and is now addressing the challenges of a poor loan repayment culture among borrowers, issues of financial sustainability and consumer practices to promote responsible lending.
Truth-in-Lending Legislation The Banking Law No. 08/99 enacted in 1999 established the regulatory and supervisory environment of the Rwandan microfinance market by entrusting in the Bank of Rwanda supervisory responsibility of the microfinance industry. Additional specific regulatory directives and guidelines were issued to govern the activities of microfinance institutions, cooperatives, and savings and credit cooperatives (SACCOs).
The Rwandan House of Parliament passed the Consumer Protection and Competition act in 2011. Due to the highly competitive nature of the Rwandan microfinance industry, this law is expected to play a pivotal role in protecting poor households and in increasing awareness about consumer rights.
Rwanda Institutions
Institution | # Borrowers | Portfolio (US$) | Products | Transp. Index | Participating Since | Age of Data |
---|---|---|---|---|---|---|
ACB-SA | 4,335 | 1,476,288 | 6 | 44 | 2011-Oct | 144 mos. |
Comicoka | 827 | 758,435 | 4 | 60 | 2011-Oct | 144 mos. |
COOJAD | 511 | 823,215 | 6 | 56 | 2011-Oct | 144 mos. |
COOPEDU | 2,029 | 7,549,835 | 9 | 68 | 2011-Sep | 144 mos. |
Duterimbere | 6,607 | 4,365,044 | 3 | 44 | 2011-Sep | 144 mos. |
Goshen | 2,076 | 3,716,008 | 5 | 54 | 2011-Sep | 161 mos. |
Inkingi | 2,648 | 2,593,366 | 5 | 43 | 2011-Sep | 161 mos. |
RML | 4,960 | 3,473,781 | 3 | 64 | 2011-Oct | 144 mos. |
UCU | 3,391 | 1,603,524 | 4 | 71 | 2011-Oct | 144 mos. |
Urwego | 37,900 | 14,755,000 | 6 | 38 | 2011-Sep | 00 mos. |
Vision Finance | 14,226 | 3,474,646 | 6 | 50 | 2011-Sep | 161 mos. |
Wisigara | 2,177 | 904,708 | 3 | 51 | 2011-Sep | 144 mos. |
Zamuka | 253 | 124,445 | 3 | 41 | 2011-Oct | 144 mos. |
Zigama CSS | 53,806 | 59,670,753 | 2 | 51 | 2011-Sep | 161 mos. |