MICROCAPITAL BRIEF: Association of Microfinance Institutions in Rwanda (AMIR) Seeks Government Support, Tax Breaks

The Association of Microfinance Institutions in Rwanda (AMIR) recently called for government support to address issues that it says are hindering the growth of the country’s microfinance sector. In a meeting with the ministries of commerce and finance, the Rwanda Revenue Authority and the National Bank of Rwanda, Patricia Uwimbabazi of AMIR cited high taxes as a leading obstacle to the growth of microfinance institutions (MFIs). According to Ms Uwimbabazi, each MFI branch must pay RWF 200,000 (USD 336) for a trading license regardless of the income generated at the branch. MFIs must also pay RWF 10,000 (USD 16) in district taxes every month and between RWF 100,000 (USD 168) and RWF 200,000 annually to the district Joint Action Forum, which organizes and implements socio-economic development activities. Other reported obstacles to MFI growth include limited commercial courts and high audit costs. As of 2009, Rwandan MFIs that report to the Microfinance Information Exchange (MIX), the US-based data provider, have aggregate gross loan portfolios totaling USD 20.5 million.

By Julie Moksim, 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 Additional Resources:

The New Times: “Rwanda: MFIs Seek Government Support” by Bosco Asiimwe

http://allafrica.com/stories/201103210070.html

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/