The Association of Microfinance Institutions in Rwanda (AMIR), an 84-member organization that was established in 2007 to build the capacity of the microfinance industry in Rwanda, has cautioned microfinance institutions (MFIs) in Rwanda regarding the risks of offering the same financial products to all clients.
AMIR Executive Secretary Rita Ngarambe told The New Times, a Rwanda-based news source, “MFIs must know that products that work here in town cannot work well in rural areas, they need to craft new products that will help these poor people access financial services….Because of this problem of MFIs using the same products, it is affecting them greatly especially with increasing Non Performing Loans, poor governance and operational risks” [1].
Ms Ngarambe also points out that AMIR has embarked on training MFIs on financial reporting, accountability and customer service in an effort to assist them in tackling the challenges they are facing, especially those in rural markets.
By: Alexandra Pattee, Research Associate
About the Association of Microfinance Institutions in Rwanda (AMIR): AMIR is an organization that was established in 2007 to build the capacity of the microfinance industry in Rwanda. As of March 2011, AMIR consists of 84 members that serve poor and middle-class families throughout the country. The association is governed by a general assembly and board of directors from Rwandan microfinance institutions (MFIs). Membership to AMIR is open to all MFIs that have been registered by Rwanda’s central bank.
Sources and Resources:
[1] The New Times, “MFIs Warned On Financial Product Duplication”, http://www.newtimes.co.rw/index.php?issue=14644&article=41782
MicroCapital.org Brief, May 31, 2011, “Rwanda’s Bank of Kigali Announces Three Microfinance Products Targeting Rural Financial Inclusion”, https://www.microcapital.org/microcapital-brief-rwanda’s-bank-of-kigali-announces-three-microfinance-products-targeting-rural-financial-inclusion/
MicroCapital.org Brief, April 19, 2011, “Urwego Opportunity Bank of Rwanda Introduces Mobile Banks to Increase Access to Financial Services in Rural Areas”, https://www.microcapital.org/microcapital-brief-urwego-opportunity-bank-of-rwanda-introduces-mobile-banks-to-increase-access-to-financial-services-in-rural-areas/
MicroCapital.org Brief, November 1, 2010: Rwandan Government Launches 7-Year Program for Economic Recovery, Aims to Reach 80% of Population With Financial Services, https://www.microcapital.org/microcapital-brief-rwandan-government-launches-7-year-program-for-economic-recovery-aims-to-reach-80-of-population-with-financial-services/
MicroCapital’s Microfinance Universe Profile: Association of Microfinance Institutions in Rwanda (AMIR), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Association+of+Microfinance+Institutions+in+Rwanda+%28AMIR%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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