The Role of Micro-finance in The Social Economic Development of Women in Rwanda

Microfinance is observed as a development tool that contributes or provides financial services and products such as very small loans, savings, micro-leasing, micro-insurance and money transfer to help the very or superbly poor in increasing or establishing their businesses. In Rwanda It is mostly used in rural areas where SMEs do not have access to other sources of financial assistance. These financial institutions constitute are; village banks, cooperative credit unions, state owned banks, and social venture capital funds to help the women in their development. Women pray a crucial role in the socio economic development of their families and communities but certain obstacles such as poverty, unemployment, low household income and social discriminations mostly in developing countries have hindered their effective performances of that role. Therefore, most of women in Rwanda embark on entrepreneurial activities to support their families as way of poverty reduction through microfinance facilities such as getting loans, pay for school fees, obtain housing, receive health care and they also provide support such as the process of decisions making, negotiations, deception and manipulation, and achievement that are out comes of wellbeing.

Statement of the problem.

It has been observed that in Nyarugenge Icyerekezo SACCO (NISACCO), like in the other UMURENGE SACCOs in Rwanda, microfinance has been applied as poverty reduction strategy on women, based on the above background it is evident that in most communities in Rwanda, women constitute a significant number of entrepreneurs as an estimated 42 percent of businesses are run by women and their main challenges is lack of funds. It has been used to provide low-income people with small donations, micro-credits and other microfinance services as motivation to exploit their productivity and develop their business to help them improve their livelihoods.

This study deal with microfinance programs mobilization targeting women for development as far as concerned to contain this financial gap, if the particular preventing factors were effectively examined as result, Rwandan women living condition will change greatly. Therefore, the purpose of this study will be to find out how credit facilities are accessed and utilized and what benefits added to the women in their development. In so doing, the study will provide information about the role played by microfinance in the socio-economic development of the women in Rwanda.

Objectives of the study.

The objectives of this study are divided into two broad objectives that are general and specific objectives which are stated as follows.

General objectives

The general objective is to determine role of microfinance in the social economic development of the women in Rwanda.

Specific objectives

Find out how women have benefited from microfinance socially and economically.

To establish the challenges faced by women in microfinance transactions.

To find out relationship between microfinance and social economic development.

To determine services done by NYARUGENGE ICYEREKEZO SACCO on women.

Research questions.

The research was guided by the following questions;

Is there improvement of the economic status of women as a result of microfinance?

What are challenges women face in accessing and utilizing from microfinance institutions?

What should be done to improve microfinance service delivery?

Has microfinance improved social status of women?

Justification of the study.