Finance::New financial education approach targets MFI, banks

As it seeks to address the challenges of financial exclusion, the Association of Microfinance Institutions in Rwanda (AMIR) is rolling-out a new strategy that will increase the sensitisation of banks and MFIs clients. The Executive Secretary of AMIR, Rita Ngarambe, said that the strategy will reboot current strategies aimed at promoting and sensitising people on financial discipline. “Financial literacy is still a challenge to our financial sector, even these people who already access banks and MFIs still cannot understand how to appropriately use money they have saved or acquired as loans,” she said. With the move, Ngarambe is optimistic that there will be a reduction in non performing loans and an increase in savings turnovers prompting a raise in the sector’s competitiveness. Early this year, AMIR embarked on building the capacity of MFIs staff and top managers in management, accountability, and customer care related issues that rekindled MFIs competitiveness in the sector. Ngarambe said that the program, which is expected to start before the end of this year, will provide trainers to banks, MFIs and SACCOs who will train their clients on financial discipline and business planning as well as management. She believes the recent concluded training of 24 Trainers of Trainers on micro business Simulation- a methodology to support informal micro enterprises manage their business transactions, publications of quarterly magazine and handbooks to be used in universities are components of the program. Iyikirenga M Remy, the Savings Coordinator and Promotion Specialist in the Ministry of Finance and Economic Planning said that the initiatives will help in harnessing current economic reforms aimed at eradicating extreme poverty. “Human resource is a priority in our country and this is the only way we can achieve our economic development,” he told Business Times, last week, in an interview. Gabo Kayitare, an entrepreneurial consultant noted that the strategy is a financial conduit through which financial institutions can easily extend their products to its clients in a cost effective and efficient way thus giving the latter a choice. Ends

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Finance::New financial education approach targets MFI, banks