MICROCAPITAL BRIEF: FinScope Rwanda Survey Indicates Rise in Rural Lending Penetration to 58%, Reaches Savings to 68%

FinMark Trust, a South African nonprofit, recently released the FinScope Rwanda report titled “Financial Inclusion in Rwanda 2008-2012”, which indicates a growing demand for loans in rural Rwanda. According to the report, the percentage of adults using lending services in rural areas is 58 percent in contrast with 46 percent in the city of Kigali. The report also shows a rise in the portion of people using saving services to 68 percent in 2012 as compared to 54 percent in 2008. It is estimated that 72 percent of Rwandan adults (3.2 million) use financial products. Seventy five percent of the 1.3 million financially excluded Rwandans are in rural areas.

The country’s Minister of Finance and Economic Planning, John Rwangombwa, said the findings will be used in the drafting of an the Economic Development and Poverty Reduction Strategy (EDPRS) II implemented between 2012 and 2016.

By Mihaela Grindeanu, Research Associate

Sources and Additional Resources:

All Africa story: “Rwanda: Rural Lending Registers Steady Rise”, http://allafrica.com/stories/201210090042.html?viewall=1

MicroCapital story, May 25, 2012: “MICROCAPITAL BRIEF: Financial Illiteracy Blamed as Default Rates in Rwanda”, https://www.microcapital.org/microcapital-brief-financial-illiteracy-blamed-as-default-rates-in-rwanda/

MicroCapital story, December 20, 2011: “MICROCAPITAL BRIEF: FinMark Trust’s Annual FinScope South Africa Survey: Financial Inclusion Down from 77% to 73%”, https://www.microcapital.org/microcapital-brief-finmark-trusts-annual-finscope-south-africa-survey-financial-inclusion-down-from-77-to-73/

MicroCapital Universe Profile: FinMark Trust, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FinMark+Trust

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