Minister Gatete urges public to step-up savings

Rwandans must save more with formal banking institutions in order for banks to have enough money to lend to the public, the Minister for Finance and Economic Planning, Amb. Claver Gatete, has said.Amb. Gatete was yesterday speaking at the launch of the National Financial Education Strategy, which aims to improve people’s knowledge in financial services provided in the country.The minister said although liquid circulation of money had decreased over the years, it remains 10 per cent above the desired level. This, he added, could be decreased further if more people save with banks.“If Rwanda is to become a financial hub, then people must adopt modern financial practices, such as saving in banks, getting insurance and the like. These are good for individuals as well as for national development,” he said.The minister said government has put in place infrastructure needed to hold together financial services and make them sustainable.This backbone, implemented by the central bank, is known as Rwanda Integrated Payments Processing System. It supports services such as Internet, agency and mobile banking.“If you are not using broader services to acquire money, how are you, for example, going to start a business? Are you going to use your own money without borrowing from a bank? That might take you many years. Being financially included will help an individual save better, as well as acquire services they might never acquire using their own capital,” Amb. Gatete said.Banks in rural settingThe director of Microfinance Supervision at the National Bank of Rwanda, Kevin Kavugizo, said the financial literacy campaign must penetrate the rural populace if it is to achieve more.“It is sad that despite having several bank branches and other financial service providers in rural areas, many people still do not use them,” Kavugizo said. “They are not aware that these services exist or simply do not know how to use them. This campaign will steadily make them realise the importance of being financially included.”The campaign will be conducted for five years by several line ministries, the private sector and NGO partners under the supervision of the Ministry of Finance and Economic Planning.The Ministries of Youth and ICT, and Gender and Family Promotion, for instance, intend to target universities and youth associations, as well as social events such as Umuganda to engage citizens on the importance of saving to meet family demands.“Women should save more because they take care of the family. They should have financial independence and take care of their personal and families needs. Through the campaign, the ministry will urge women to teach their families about the importance of financial independence through savings, acquiring loans for business and the like,” Oda Gasinzigwa, the minister for gender and family promotion, said.The Ministry of Finance developed an action plan for the strategy which includes activities like, reviewing and modifying education curricula to include financial education content.