Impact of microfinance institutions in poverty alleviation in rural area in Rwanda case study COPEDU Ltd Rwamagana branch

UNIVERSITY OF RWANDA

College of Business and Economics

SCHOOL OF BUSINESS

DEPARTMENT OF FINANCE

TOPIC:»IMPACT OF MICROFINANCE INSTITUTIONS IN POVERTY ALLEVIATION

IN RURAL AREA IN RWANDA» case study COPEDU Ltd Rwamagana branch

STUDENT NAME: SINDAHERA Olivier

REGISTRATION NUMBER: GSF 20114921s (215034124)

SIGNED: ................................................................

ADVISOR:

NAME: Ambrose NZAMALU

SIGNATURE: ...............................

DATE: ..........................................

DECLARATION

I, SINDAHERA Olivier, hereby declare that the work presented is my original work and has never been presented elsewhere for any other academic qualification at any university or institution of higher learning.

STUDENT NAMES:SINDAHERA Olivier

DATE: ......................................................................................

SIGNATURE: ...........................................................

ACKNOWLEDGEMENT

This laborious have been success without moral, financial support and guidance from various persons.

My thanks go to the government of Rwanda through the University of Rwanda for grating me access to university education scholarship. Equally the College of Businessand Economics observe mention tiresome efforts in searching for suitable lectures to prepare us for the challenges of this work.

I would like to express my appreciation to my supervision for his incomparable commitment during the course of this work. Although he had a lot to do, he was never too busy to receive me for advice.

I am particularly grateful to my brother and his wife, my sisters, my best friends for their immeasurable support rendered to me on study period.

I am indebted to thank my classmates in four year, my friends and roommates for cooperation we shared.

In finally, I would like to extend my sincere thanks and appreciation to those who supported my directly and indirectly in carrying out this dissertation.

God bless you greatly.

LIST OF ABBREVIATIONS AND ACRONYMS

1. ADB: African Development Bank

2. BNR : Bank National du Rwanda

3. BRI: Bank Rekyat Indonesia

4. CIDA: The Canadian International Development Agency

5. COOPECs: Cooperative des Epergne et Credits

6. COOPEDU: Cooperative Duterimbere

7. GDP :Gross Domestic Product

8. GNP : Gross National Product

9. Km : Kilometre

10. Ltd: Limited

11. MDGs : Millennium Development Goals

12. MFIs: Micro Finance Institutions

13. NGOs : Non-Gouvernemental Organisations

14. NMFR :National Micro Finance Policy for Rwanda

15. PRSP: Poverty Reduction Strategy Paper

16. RDB: Rwanda Development Board

17. RMF: Rwanda Microfinance Forum

18. Sq : square

19. UBPR: Union des Bank Populaire du Rwanda

20. UN : Union Nations

21. UNDP : United National Development Programs

22. US : United States

LIST OF TABLES

Table 1: sampling techniques and sample size 25

Table 2: Responses on characteristics of employees of COPEDU Ltd 32

Table 3: Responses on how the idea of starting up COPEDU Ltd comes up. 33

Table 4: Responses on the sources of funds for starting COPEDU Ltd 34

Table 5: Responses on whether beneficiaries agree with compulsory savings 34

Table 6: Responses on the level of saving in relation to credits offered 35

Table 7: whether clients are educated on the importance of saving before they are given loans 35

Table 8: Responses on how long it takes COPEDU Ltd to process application 36

Table 9: whether clients give collateral security in order to be given a loan 36

Table 10: Responses on whether COPEDU Ltd institution offers individual loans 37

Table 11: Responses on what makes COPEDU Ltd customers happy. 37

Table 12: Sources of funds for microfinance institutions 38

Table 13: capacity building programs undertaking by C0PEDU Ltd to alleviate poverty in rural areas 39

Table 14: Response on how customers come to know the existence of COPEDU Ltd 42

Table 15: Response on how long it took beneficiaries to get a credit. 42

Table 16: Response whether the credit was difficult to repay. 43

Table 17: Responses on which security clients offer to get the loans. 43

Table 18: Response on whether clients receive funds at subsidized interest rates 44

Table 19: Responses to what kind of project to invest the loan 45