Micro Finance Institutions to Improve Service Derivery

{{A three day workshop aimed at sensitizing heads of micro finance institutions on ethical codes in their financial organs to endorse improved customer care in Rwanda ends September 19 at Chez Lando Hotel in Remera.}}

Speaking to {Igihe.com}, the Programs Manger for Micro Finance Institutions in Rwanda (AMIR) Peter Rwema said, “Most of micro finance institutions don’t have codes of ethics to guide their institutions which leads to poor customer care delivery”

“People fear to acquire loans because of some horrible procedures used by some institutions when people fail to payback, there should be instant communication between both parties before selling properties” he narrated adding that such scenarios are due to lack of professional ethics.

He also added that even the few that posses such ethical rules keep them in drawers in some cases. “We find some files kept in drawers with dust showing that they have not been touched by anyone” he further clarified

The micro finance institutions came as a cure to poverty in Rwanda though some of them became more obstacles than cure to access to financial credits. The government of Rwanda has invested a lot in poverty eradication projects to fight poverty in Rwanda.

In 2006, poorly managed micro finance institutions where closed down by central bank and this left a big number of People in a dilemma after losing millions

This led many people to lose confidence in such institutions yet in developed countries micro finance institution have played a very big role towards the development.

SACCO is an example of current micro Finance which reaches down in the villages, the government of Rwanda’s initiative as elaborated in the Vision 2020 development agenda that aims to increase access of financial services to citizens.

The concept of Umurenge and Umwalimu SACCO was initiated on the understanding that banks and other financial institutions are more concentrated in towns to the detriment of the poor citizens in rural areas. As a result establishing a SACCO at every Umurenge would bridge this gap.