Editor,

RE: "Over 89% Rwandans have access to finance - survey” (The New Times, March 4).

First things first; 89 per cent of financial inclusion is not just a step in the right direction, it is a gigantic step that we should all be proud of. Many more Rwandans have access to bank accounts, money can be transferred at a click of mobile phone button, and access to the internet has aided this transition.

Kudos to that! Now, let me point out something critical; we may have indeed progressed in terms of accessing financial services such as accounts, loans, overdrafts and whatnot, however, there remains a big gap between access and actual access.

I am talking about the ability to be able to apply for and be granted a loan, but be put off by the inexplicably high interest rates of anywhere between 16 -20 per cent, which prohibit people from accessing financial services in the first place .

In the end, the only people who go ahead and accept such high interest loans are those that can afford to repay, and they are a minority. The vast amount of Rwandans cannot repay interests rates of 16 per cent and above, it is simply unrealistic.

In my opinion, financial inclusion comes in twofold; first is the access to financial services, and second, that access has to be realistically accessible (affordable). Without the latter, the former is of little use.

Freddy G