TABLE OF CONTENTS
DECLARATION
ii
ACKNOWLEDGEMENT
iii
LIST OF ABBREVIATIONS AND ACRONYMS
iv
LIST OF TABLES
v
TABLE OF CONTENTS
vi
CHAPTER ONE: GENERAL INTRODUCTION
1
1.0: INTRODUCTION
1
1.1: BACKGROUND OF THE STUDY
1
1.2: STATEMENT OF THE PROBLEM
3
1.3: OBJECTIVES OF THE STUDY
4
1.3.1: The general objective
4
1.3.2: The specific objectives
4
1.4: RESEARCH QUESTIONS
4
1.5: RESEARCH HYPOTHESES
5
1.6: SIGNIFICANCE OF THE STUDY
5
1.7: SCOPE OF THE STUDY
6
1.8: ORGANIZATION OF THE STUDY
6
CHAPTER TWO: LITERATURE REVIEW
7
2.0: INTRODUCTION
7
2.1: MICROFINANCE HISTORICAL AND BACKGROUND AND
EVOLUTION
7
2.2: DEFINITION OF THE CONCEPT MICRO FINANCE
8
2.3: MICROFINANCE INSTITUTION
10
2.4: CHARACTERISTICS OF MICROFINANCE
10
2.5: REFLECTIONS ABOUT THEORIES
11
2.6: MICROFINANCE INSTITUTIONS IN RWANDA
11
2.7: MICROFINANCE IN DEVELOPING ECONOMIES
13
2.8: THE ISSUE OF POVERTY
14
2.8.0: Introduction
14
2.8.1: Definition of poverty
15
2.8.2: Measurement of poverty
17
2.8.3: Poverty in Rwanda
18
2.8.3.1: Structural features
19
2.8.3.2: The Legacy of Genocide
20
2.8.4: Poverty in Africa
20
2.8.5: Poverty alleviation
21
2.9: REFLECTIONS ABOUT MICROFINANCE AND POVERTY
ALLEVIATION
21
CHAPTER THREE: RESEARCH METHODS
23
3.0: INTRODUCTION
23
3.1: RESEARCH DESIGN
23
3.2: SOURCE OF DATA COLLECTIONS
24
3.2.1: Primary data
24
3.3: AREA OF THE STUDY
24
3.4: SAMPLE, SAMPLE SIZE AND SAMPLE SELECTION
25
3.4.1: Sampling
25
3.4.2: Sample size
25
3.5: TECHNIQUE OF DATA COLLECTION
25
3.6: DATA COLLECTION
26
3.6.1: Questionnaires.
26
3.6.1.2: Open-ended questions
26
3.6.2: Interview
26
3.6.3: Documentary study
26
3.6.4: Observation
27
3.6.5: Data processing
27
3.6.5.1: Editing
27
3.6.5.2: Coding
27
3.6.5.3: Tabulation
28
3.7. LIMITATIONS OF STUDY
28
CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION
30
4.0: INTRODUCTION
30
4.1: PARTI: PROFILE OF COPEDU Ltd MICROFINANCE
30
4.1.1: Historical background of COPEDU Ltd
30
4.1.2: Mission
31
4.1.3: Vision
31
4.1.4: Values
31
4.1.5: Products
31
4.2: PART II: RESPONSES FROM COPEDU 'S MANAGER AND
EMPLOYEES.
32
4.2.4. Response on how micro finance institutions
are helping the Rwandan rural poor population
39
4.2.5. Answers to research questions
39
4.2.6: Problems COPEDU Ltd encounters in running
its business
41
4.2.7: How to overcome these problems
41
4.3: PART III: RESPONSES FROM COPEDU Ltd
BENEFICIARIES
42
4.3.1: What necessitated them to be beneficiaries
of COPEDU LTD?
44
4.3.2 Whether the clients have recommended other
people to join COPEDU Ltd
45
4.3.3 COPEDU Ltd has contributed to customers'
welfare
45
CHAPTER FIVE: SUMMARY, CONCLUSION AND
RECOMMENDATIONS.
46
5.0: INTRODUCTION
46
5.1: Summary of the findings
46
5.2: Conclusion
47
5.3: RECOMMENDATIONS
48
5.3.1: Recommendations to COPEDU Ltd
49
5.3.2: Recommendation to the Government
49
5.3.3: Recommendation to microfinance
institutions.
50
5.4: AREAS FOR FURTHER RESEARCH
51
REFERENCES
52
15: How micro finance institutions are helping the
Rwandan rural poor population?
58
16: How COPEDU Ltd has contributed to customers'
welfare?
58
17: Whether the clients have recommended other
people to join COPEDU Ltd?
58
19: What is necessitated them to be beneficiaries
of COPEDU Ltd?
59
ABSTRACT
The study aimed at finding out the Impact of Micro Finance
institutions credit services in poverty alleviation in rural areas of Rwanda
with a case ofCOPEDU LtdRwamagana branch.
The research was carried out in COPEDU Ltdwhere 10 respondents
were selected from COPEDU Ltdmanagers and employees and 20 respondents were
selected from COPEDU Ltd's beneficiaries.
The main objective of the study was to determine whether Micro
Finance institutions have an impact in alleviating poverty in rural areas of
Rwanda.
In this study the main consideration was primary source of
information, COPEDU Ltdrespondents were given questionnaires and finally
interviewed in order to get the required data.
For the case of secondary data, documents related to
Microfinance Institutions in alleviation poverty were reviewed, textbooks and
magazines were consulted.
The major findings and recommendations of the study was that
Microfinance Institutions contribute a lot to the poverty alleviation and for
COPEDU Ltd, loans are issued to clients on the basis of credit associations,
all members in COPEDU Ltd guarantee each other and bear responsibility of
timely loan repayment. It was found out that Microfinance institutions do not
offer adequate financial products and services adapted to low income brackets
of the population and that beneficiaries are not contented with the rate of
interest charged because they feel it is high.
There is a problem of insufficient funds to fulfill clients'
demands and there is a general problem of lack information sharing as most of
the employees are inexperienced and unqualified, calling Microfinance
Institutions to make an improvement on them.
After analyzing and interpreting results, recommendations were
made for effective and efficient operation of Microfinance Institutions in
Rwanda as a way forward to poverty alleviation.
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