WHEN HE LEFT HIS HOME VILLAGE in Kirambo area, Nyamasheke District in the  Western Province, shortly after the 1994 Genocide against the Tutsi and headed to Bugarama, in the far south-west part of the country, Theoneste Ndamuzeye dreamt of getting a new lease of  life.At the time, Bugarama was and remains a major rice farming hub in the country. So, Ndamuzeye wished to reap big from the field.However, hope turned into despair in his first years there as the 38-year-old father lived a dog’s life earning a living by working in other people’s gardens and doing odd jobs, like carrying people’s luggage. He earned less than Rwf1,000 even on a good day.But amid these challenges, Ndamuzeye never lost hope and in early 2000, he and a  few local residents started a small group that sought to encourage the saving culture amongst themselves.The informal group would later transform Ndamuzeye’s life, together with the lives of his colleagues.Using his savings, Ndamuzeye embarked on agriculture, focusing mainly on rice and maize farming.And, in 2007,  with the help of the government and non-governmental organisations, the group merged with about 30 other informal savings and credit groups and associations to form a stronger micro-finance cooperative.The cooperative was later named CMF Umwete (Cooperative de Micro-Finance Umwete), perhaps to allude to members’ commitment to improving their lives.The cooperative currently operates in 12 sectors in both Rusizi and Nyamasheke districts of the Western Province with over 7,000 members of whom 3,173 are women.Since its inception, the cooperative has extended loans to its members for investment in income generating activities and thus improved their livelihood, according to members.This year alone, it has given out Rwf117 million to 404 members, according to Fulgence Menyabakunzi, the coop’s manager.Transforming livesNdamuzeye has no regrets for joining the informal savings and credit group, ."Whenever I need a loan, I get it in a few days,” Ndamuzeye says, as he feeds his Friesian cow at his home in Cyarukara cell, Muganza Sector, Rusizi District.When he started borrowing money from the cooperative in 2007, Ndamuzeye received only Rwf50,000 and used it to purchase fertilisers for his farm.Later, the father of three sought to increase  farm production and borrowed more money. Though Ndamuzeye doesn’t recall the number of times he has borrowed and the total amount he has received in loans, he estimates it to be in millions.He attributes his rise from poverty to working with microfinance institutions."Everything I have in life is as a result of my relationship with the cooperative,” Ndamuzeye says, adding that he never struggles to acquire a loan.Ndamuzeye is now a proud owner of a house and  about five plots of land in Bugarama, where he grows rice. He says he gets at least Rwf2 million from rice farming annually.Ndamuzeye also has two Friesian cows that he  bought two years ago and a number of  goats, chicken and pigs. He also has a Loncin LC motorcycle that he uses in his farming and livestock activities. "From almost nothing, I gradually improved my welfare until I became the man I am today,” Ndamuzeye says, noting that he can ably provide for his family."I look forward to growing bigger,” he adds, observing that working with the micro-finance institution has not only given him access to finance but also taught him financial management.He says the secret to his improved social welfare lies in  hardwork and avoiding lavish lifestyle."You have to efficiently manage your resources and in case you secure a loan,  you should service it accordingly,” Ndamuzeye advises. But Ndamuzeye is just one of the many Rwandans who have benefited from local micro-finance cooperatives.Simon Mutangana, 65, also acquired a loan to boost his business. The resident of Rusizi District, who has been dealing in fertilisers and a variety of chemicals used both in agriculture and animal husbandry, says he acquired over Rwf2 million in loan to expand his activities."My business was struggling and the loan helped me salvage it,” Mutangana says.Mutangana, 65, says he prefers working with micro-finance institutions to commercial banks. "They are accessible and flexible,” he says.Fighting povertyMicro-finance cooperatives offer financial services in form of loans to the poor. The institutions offer one of the best ways to poverty alleviation and improvement of people’s lives.Experts argue that the cooperatives reach more individuals and families than other financial institutions, thus making them the main actors in offering financial services to the people.Generally, these cooperatives offer short-term loans to residents, mainly farmers and small business owners.So far, the cooperatives have offered billions in loans to people who in turn invest the money in income generating schemes.For instance, Union des CMF Umurimo, which manages four micro-finance cooperatives with over 18, 900 members in Rusizi and Nyamasheke districts, had a gross loan portfolio of Rwf372 million spread among 1,744 members between January and  September this year.A recent monetary policy and financial stability statement by the National Bank of Rwanda, indicates that the micro-finance sector, which comprises 490 institutions, including 478 savings and credits cooperatives (SACCOs), has played a major role in fighting poverty.The report indicates that the sector recorded a positive performance with 20.8% asset growth from December 2012 to June 2013, up from Rwf101.0 billion to Rwf122.1 billion. Gross loans increased by 7.9% moving from Rwf59.2 billion to Rwf63.9 billion over the same period, according to the report."The cooperatives have been instrumental in boosting members’ welfare,” Prisca Nyirabadage, the Union accountan, says. "So many individuals have been lifted from absolute  poverty courtesy of cooperative societies. Many of those who get loans are investing in agriculture or livestock farming and it is impacting positively on their lives.” Sylvain Mugorozi, a member of the Huye-based Coopec Inzira, says he has received over Rwf3.5 million over the last three years which he has successfully managed to service."The money has allowed me to grow my business,” said the 35-year-old electronics dealer. "I invested it in my business and the proceeds I got allowed me to grow my business, gain much interest, service back the loan and provide for myself and family.”