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The impact of Micro-finance on poverty reduction in Rwandakey findings of this work and study have been discussed. The goal of this research was to study the impact of Microfinance on poverty reduction in Rwanda, Case study: Kacyiru SACCO Headquarter. The analysis of data using the survey that was conducted, demonstrates that the majority 52.9% clients of SACCOs are women and most of them just had primary education. Most of the women started their business by taking loan from SACCOs as compared to other sources. They were able to increase their income and provided not only with the financial help to their families but also had positive impact on other factors of daily life. These poor women brought about a positive change to their financial and social situation and started taking active part in the decision making process of the family and society. The results obtained from our analysis regarding the success of increasing role in decision making process in the family, reveals that SACCOs are highly associated to build up of social and economic empowerment. In addition, the analysis of the data obtained in this study indicates that the procedure of obtaining loans from SACCOs is easier than conventional banking. Based on the first-hand experience of the society and from the researcher’s observation, it is evident how the Government of Rwanda intervened to eradicate poverty through the VUP which made it possible for everyone to join the SACCOs. Since most of the SACCOs don’t require a collateral from one acquiring the loan, this is one of the most favorable reasons to take loan from SACCOs unlike the conventional banking where collateral was the first and foremost requirement. The study also established the conception about operational assistance of SACCOs that affect positively to run the business successfully. This is also one of the reasons of micro-credit scheme being popular. It is an effective mechanism, which assists both lenders and borrowers. The borrowers get the guidelines from the SACCO’s workers to develop or to run the small business, which can hardly be expected from conventional banks. This is another reason of poor people to become MFIs oriented. Another impact of SACCOs that was found to be important is the creation of employment opportunities. From the study, it can be interpreted that SACCOs affect the creation of employment. It was found from our observation that most of the family members of borrowers contributed to run the business directly or indirectly, unrelated to the matter that which member was endorsed with the loan. To sum up, it can be noticed from the overall analysis that there is significant impact of microfinance activities on improvement of the living standard of the family not only in economic term but also in social term. Amazingly, the relation between different factors of society and family became evident and clear, which were being neglected and not thought about during the period of existence of only conventional banking system. From the study and research, the researcher came to the conclusions that there is a noticeable and positive impact of microfinance activities on the living standards, empowerment and poverty alleviation among the poor people in the society. Fichier: 
Rubrique: Mémoire/Travaux Auteur: Nicolenstia Bateau | Date: 11 Sept 2015 |
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