Despite the progress made in Rwandan women’s access to financial services, the National Bank of Rwanda (BNR) has said that the banking sector should play a leading role to further drive financial inclusion.

This was highlighted during the presentation of the Monetary Policy and Financial Stability Statement (MPFSS) – which assesses the country’s economic and financial sector performance – on September 25.

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Looking at banks’ loan book where borrowers increased to 1.3 million, only 29 per cent were female while out of 3.6 million depositors, only 14 per cent were female, as of June 2024.

In contrast, microfinance institutions show slightly better figures, with 47 per cent of 386 thousand borrowers and 44 per cent of 5.4 million depositors being women.

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Jean Bosco Iyacu, the chief executive of Access to Finance Rwanda, stressed the importance of financial institutions in understanding the barriers faced by women in accessing finance.

"It is crucial for banks to listen to and understand the specific needs of women to provide relevant services,” he said.

Iyacu pointed to social norms as a significant barrier to women’s financial engagement, explaining that societal attitudes often discourage women from approaching financial institutions.

"This mindset not only affects women’s confidence but also allows others to take advantage of them,” he added.

Another issue is the lack of financial products tailored to women’s needs, such as cash flow-based lending.

Iyacu urged institutions to reevaluate their lending processes and consider the unique challenges women face in accessing loans.

"Recent research shows that women tend to repay their loans responsibly. Banks should ease the application process and place more trust in female borrowers,” he noted.

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Financial literacy emerged as another barrier, with Iyacu advocating for enhanced financial education to help women better understand their financial options, calling on development partners and relevant bodies to create supportive schemes that facilitate women’s access to finance.

"Women should step out of their comfort zones and at least consider forming groups. The power of associations can significantly help address financial and market challenges, among others,” Iyacu advised.

What more can be done?

While 47 per cent of female borrowers and 44 per cent of female depositors in microfinance institutions (MFIs) are women, only a small percentage (3% of borrowers and 9% of depositors) are organised in groups, central bank data shows.

Diane Karusisi, Chief Executive Officer of the Bank of Kigali (BK), recognised the findings from BNR as a valuable foundation for strategic planning for 2025.

"These results will help us identify our priorities for the upcoming fiscal year,” she noted.

Karusisi highlighted that BK has products designed specifically for women but acknowledged the need for better marketing to raise awareness.

"We are focusing on awareness, extending loans, and providing financial education while designing secure products for women,” she added.

The central bank has issued guidelines to financial institutions to better address the needs of female clients.

Shelagh D. Kahonda, Executive Director, Financial Stability Directorate at BNR, confirmed the development, expressing optimism for positive outcomes.

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Peace Umuganwa, a businesswoman specialising in extraction machinery rental, shared her experiences with financial barriers.

Initially relying on personal savings for her small business, Umuganwa faced significant challenges due to lack of collateral.

"I didn’t see the way out for my business because I lacked the financial capacity to operate effectively,” she recalled. Her fortunes changed when her business proposal won a competition, allowing her to secure financing at an interest rate of 15 per cent without requiring collateral.

Ten years in business, she said the business is returning profits. She urged financial institutions to consider the positive aspects of women’s financial requests rather than solely focusing on perceived risks.

Umuganwa suggested improving supervision processes to ensure that funds are utilised effectively, which would encourage more women to seek financial support.

"Women must step up because opportunities won’t find them indoors,” she asserted.