UNDP commits $4m towards microfinance development

The United Nations Development Program (UNDP), through the United Nations Capital Development Fund (UNCDF) has committed $4m to building an inclusive financial sector in Rwanda. The programme aims at sustaining the implementation of the National Microfinance Strategy for a period of four years between 2009 and 2014. A memorandum of understanding that will see disbursement of these funds was signed yesterday between UN Resident Coordinator Aurelien Agbenonci and Finance Minister John Rwangombwa. At the same event, the United States also committed $1 million to the same project. “This support is highly appreciated because it is in line with Rwandan Vision 2020 that aims at transforming Rwanda into a middle income country as well as an economic trade and communications hub by the year 2020,” Rwangombwa said. In 2007, the government approved the validation of the National Microfinance Strategy (NMS) for a five-year period with the objective of supporting sustained economic growth and social development in Rwanda. The Minister said that the projects will aim at improving productivity and enhance the market access of small and medium scale producers and micro enterprises. “The support given by UNDP/UNCDF is aligned to Financial Sector Development Programmes and the National Monetary Fund Policy Implementation Strategy to contribute to the refinancing and sustainable management of Microfinance Institutions,” Rwangombwa noted. He said that the ministry will strive to ensure that the funds are focused on the programmes and implementation of policies rather than on administrative and operational overheads or managerial expenses. He noted that the project will be result oriented and will emphasize a zero tolerance to mismanagement of these resources. Ends