The Private sector in Huye District is in the process to set-up a microfinance which is expected to promote business in the area.

The initiative is intended to ease access to business loans for people without collateral.

Speaking on Monday, Lambert Byemayire, the Private Sector Federation (PSF) chairman in Huye District, said the goal is to address difficulties encountered in securing capital and the challenge of high interest rates charged by banks.

He said efforts to gathers people’s views about business and interest them to join the scheme are currently on going.

Byemayire said PSF is also conducting a census to register all businesses in the district.

"This will help us know how much contribution a business person will give and be able to monitor the growth of business in the district,” he said.

He said they want to start the microfinance with at least Rwf300 million.

Once established, the microfinance will promote business in its various facets, he said.

"We do not want microfinance to remain a preserve of urban dwellers only, but also the rural small-scale entrepreneurs who have difficulties accessing loans.

He noted that businesses would enhance the Huye residents’ purchasing power.

"Once people have purchasing power, business will thrive,” he said.

The Director of Business Development and Employment in Huye District, Paulin Samvura Mutemberezi, said many people have good business ideas but such ideas are not exploited because there is a finance challenge due to lack of collateral.

"There is also the issue of high interest rates ranging from 18 to 19 per cent that is charged by commercial banks which is affecting business,” he said.

Mutemberezi said the district is sensitising business people to work in cooperatives.

"We are calling on business people to work in cooperatives and pool resources together for better results. They should abandon traditional business practices and embrace modern business practices,” he said, citing an example of Ingenzi za Huye Cooperative which built a complex that houses Huye City Modern Market.

Innocent Nshimiyimana, from Rusatira Sector, who owns a shop in Huye City Market, said the proposed microfinance should focus on tackling problems faced by traders.

Other traders said that the microfinance administration should reach traders to know their concerns and ensure it benefits small entrepreneurs whose problems are often not given enough attention.

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