Poverty eradication remains a top priority within the 17 Sustainable Development Goals (SDGs) outlined in the 2030 Agenda. The first goal specifically highlights the need to mobilise resources to help developing countries, especially the least developed, implement effective programmes and policies to end poverty in all its forms. Access to Finance Rwanda (AFR) is part of the Financial Sector Deepening (FSD) network in Africa, aiming to make an impact by enhancing financial inclusion and sector development. By working with policymakers, regulators, and financial service providers, AFR strives to drive inclusive and sustainable economic growth in Rwanda. ALSO READ: Catalysing Rwanda's financial sector growth through skills development In an interview with The New Times, Jean Bosco Iyacu, CEO of Access to Finance Rwanda, shared insights into how AFR is supporting Rwanda’s financial landscape towards becoming more inclusive and innovative. He also underlines the role of data analytics in achieving this goal with a focus on the recently launched Rwanda Finscope 2024 report. How does Access to Finance Rwanda’s mission align with Rwanda’s national development goals? Access to Finance Rwanda (AFR) was established in 2010 as a not-for-profit company to advance financial inclusion and develop the financial sector in Rwanda, we are funded by Sweden, the MasterCard Foundation, and Jersey Overseas Aid. Inclusive economic growth and poverty reduction are impossible if key segments of the Rwandan population and priority sectors can’t access the financial services they need. AFR addresses the challenges within Rwanda’s financial ecosystem, supporting the design, pilot and rollout of new and innovative financial solutions/products in collaboration with policymakers and private sector players like the Long-Term Saving Scheme (“Ejo Heza”) BY Rwanda Social Security Board (RSSB), the National Agriculture Insurance Scheme (Tekana Urishingiwe Muhinzi Mworozi) by the Ministry of Agriculture and Animal Resources (MINAGRI), and the Rwanda National Digital Payment System- eKash by RSwitch, etc. We also support the development of new laws and regulations and provide essential data and insights, such as those from the Finscope survey, to inform policy and business decisions crucial for national development. Can you briefly explain the Finscope Survey’s history in Rwanda, its primary goals, and why it’s conducted regularly? The Finscope Survey is a demand-side survey conducted every four years since 2008, assessing the access to and usage of financial services by Rwandans. It provides critical insights into the financial landscape, highlighting key drivers and barriers to financial inclusion. The survey’s periodic nature allows enough time for financial interventions to produce measurable outcomes and aligns with the frequency of other national surveys, like the Integrated Household Living Conditions Survey (EICV). For the 2024 edition released in June, we’ve expanded the survey to include refugees and Micro, Small, and Medium Enterprises (MSMEs), offering a comprehensive view of financial inclusion across different segments of the population. We also introduced measures of financial health to assess whether people are spending, saving, borrowing, and planning in ways that will enable them to be resilient and pursue opportunities. What trends have emerged from the latest Finscope Survey? Financial inclusion has risen significantly, increasing from 93 per cent in 2020 to 96 per cent in 2024, now covering 7.9 million of the adult population in Rwanda. This progress has drastically reduced financial exclusion from 52 per cent in 2008 to just 4 per cent in 2024. Formal financial inclusion also saw a jump from 77 per cent in 2020 to 92 per cent in 2024. However, challenges persist. The exclusion rate remains high among young adults aged 16-17 and the elderly (61+). Mobile Money uptake has driven much of the inclusion growth, rising from 72 percent in 2020 to 91 percent in 2024. The gender gap in accessing formal financial services has narrowed from 8 per cent in 2020 to 4 per cent in 2024. Despite these advances, only 59 per cent of adults save with formal institutions (up from 54 per cent in 2020), and bank credit usage remains low at 9 percent. Access to insurance has increased from 17 percent in 2020 to 27 percent in 2024, while 69 percent of adults have faced climate change-related risks. Overall, the percentage of financially included Rwandans has surged from 48 percent in 2008 to 96 percent in 2024. How do Finscope Survey findings influence government policy and business decisions in Rwanda? The Finscope Survey plays a role in shaping policies and interventions across various sectors, including MSME financing, agriculture, and women’s empowerment. Finscope provides essential data that guide the development of targeted policies and regulations to tackle financial access challenges for different population segments. The survey’s insights are pivotal for crafting effective strategies, as they help identify specific needs and gaps. Finscope findings allow financial service providers to better understand and serve diverse client categories, leading to the creation of tailored financial products. What are the main barriers to financial inclusion in Rwanda, and how is AFR addressing them? Despite significant progress, challenges like low financial literacy, lack of collateral, and limited innovation from Financial Services Providers (FSPs) persist. To address these, AFR, in close collaboration with the National Bank of Rwanda, supports the National Financial Education Strategy and collaborates with the Ministry of Agriculture and Animal Resources (MINAGRI) to increase farmers’ visibility in the financial sector through integrated Digital Public Infrastructure (DPI). We’ve also established a Portfolio Guarantee Scheme with top commercial banks to facilitate lending to MSMEs and are implementing various data analytics projects to support financial institutions in creating innovative products. We are implementing a five-year initiative, Grow 2 Scale, funded by the MasterCard Foundation, aimed at enhancing investment readiness for MSMEs. Additionally, we are developing an Inclusive Insurance Market Development Roadmap to guide key stakeholders in the insurance industry on prioritising and implementing transformative initiatives. Our efforts also include tackling gender norms that impede financial inclusion for women and girls. How does financial literacy contribute to financial inclusion, and what initiatives are being undertaken in this area? Financial literacy is crucial for improving financial inclusion. It enhances understanding of financial products, encourages savings and investment, fosters better financial management, and increases financial confidence. We’ve supported the National Financial Education Strategy in collaboration with the central bank and the Ministry of Finance and Economic Planning to ensure that more Rwandans are equipped with the knowledge they need to participate in the economy effectively. What challenges are associated with integrating FinTech solutions into Rwanda’s financial ecosystem? Integrating FinTech solutions presents some challenges if not well managed, those would include regulatory compliance, cybersecurity risks, and compatibility issues. However, FinTech solutions present huge opportunities in accelerating Rwanda’s financial inclusion agenda and financial sector innovation. FinTech fosters increased efficiency, enhanced data analytics, and innovation in financial products. AFR is working to promote collaboration between FinTechs and traditional Financial Service Providers to bring innovations to the financial ecosystem, particularly for underserved populations. How is AFR addressing gender disparities in financial inclusion? Gender disparities in financial inclusion are a concern. We’ve conducted gender norms studies to understand how social norms affect women entrepreneurs’ financial inclusion. The insights from these studies guide our efforts to influence the financial market to better meet women’s needs. We are intentional about incorporating gender aspects into all our projects and use gender-disaggregated data to develop innovative, transformative financial products and services. Any final thoughts? What are you doing to help financial service providers better reach the unbanked and underbanked? AFR is actively providing technical assistance and capacity enhancement to Banks, Microfinance Institutions (MFIs), FinTechs, and industry associations. Our initiatives include business model diagnostics, strategy development, product innovation, go-to-market strategy, policies, procedures, processes and tools reengineering, and skills enhancement, among others. We also offer a Portfolio Guarantee Cover to facilitate lending to eligible customers, helping MSMEs overcome collateral requirements and access the financial services they need to grow and create dignified and full employment opportunities for young women and men.
