The Rwandan government has reported a significant increase in the country's savings rate, with the national savings rate now standing at over 12%. This is a positive trend, according to the Ministry of Finance and Economic Planning (MINECOFIN), which aims to increase the national savings rate to at least 25.9% by 2029. The ministry attributes this growth to the increasing popularity of savings groups and cooperatives.
The country celebrated the 37th International Savings Day on October 31, with events held in the Kayonza district. The theme of this year's celebrations was "Savings, the Foundation of Development." Local residents who have formed savings groups have reported improved livelihoods, citing the ability to access loans and invest in income-generating activities. For example, Ruth Tuyiringire, a member of a savings group in Ruramira sector, reported that her group had grown from 5 million francs to over 16 million francs in just a short period.
Tuyiringire's group, which focuses on livestock and agriculture, has benefited from access to loans and savings. She reported that the group's savings have enabled them to invest in their own projects, such as buying livestock and producing animal feed. Other savings groups have also reported similar success stories, with some members using their savings to start businesses or invest in education.
However, not all savings groups have been successful, with some members reporting a decline in their savings due to economic challenges. Deborah Nyirahabimana, a member of a savings group in Gahini sector, reported that her group's savings had decreased due to a poor harvest and rising prices. She noted that she had reduced her weekly savings from 2,000 francs to just 500 francs.
Despite these challenges, the government remains optimistic about the growth of savings in Rwanda. Cyllile Hategekimana, the Chief Executive Officer of MINECOFIN's banking and financial institutions department, reported that the number of savings groups had grown significantly, with over 15,000 groups now registered. These groups have a combined savings of over 54 billion francs.
The government has also reported growth in other savings initiatives, such as the SACCO (Savings and Credit Cooperative) movement, which has attracted over 4.4 million members. The SACCOs have a combined asset base of over 301 billion francs, demonstrating the growing popularity of savings and credit cooperatives in Rwanda.
The government has urged residents to continue to save and invest in their future, despite economic challenges such as drought. Pudence Rubingisa, the Governor of Eastern Province, noted that residents should be prepared to adapt to climate change and develop strategies to mitigate its impacts. The government has also announced plans to promote other income-generating activities that are less dependent on agriculture.
Key points
- Rwandan savings groups have reached a milestone with over 54 billion francs in savings.
- The country's savings rate has grown to over 12%, with a target of 25.9% by 2029.
- The government is promoting savings and credit cooperatives, with over 4.4 million members and a combined asset base of over 301 billion francs.
