MSME Finance in Rwanda-Status and Opportunity for Financial Institutions

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MSME Finance in Rwanda-Status and Opportunity for Financial Institutions

by Anup Singh
Jul 17, 2017
1 min

This briefing note elaborates on key findings of the research and how financial institutions can profitably serve this strategic and niche segment in Rwanda.

Rwanda aspires to progress from a low income, agriculture based economy to a middle income, knowledge based service economy by 2020. In its economic development, as per the vision 2020 document, Rwanda sees an important role of MSMEs who account for approximately 97% of businesses, contribute to 55% of the total GDP, and employ around 41% of the population.

MicroSave, conducted a study to assess the state of finance to MSMEs in Rwanda which revealed that though MSMEs are adequately served by financial institutions ( in terms of MSMEs accessing savings/current accounts from formal financial institutions), a significant number reported that their financing needs are rarely met by financial institutions. This briefing note elaborates on key findings of the research and how financial institutions can profitably serve this strategic and niche segment in Rwanda.