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 noted that.“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”
Despite the challenges, the Rwanda cooperative alliance is optimistic that the tremendous performance of Umurenge SACCOs need stable MFIs that are able to serve the demand already created by the SACCOs.
“We have achieved a lot in cooperatives and what we need now is strong financial institutions that are able to provide banking services,” Audace Bimenyimana, of Rwanda Cooperative Agency said.
Reacting on the matter, Ngarambe assured 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.
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