5.2: Conclusion
Basing on the findings the following conclusions were made;
COPEDU Ltd plays a significant role in trying to alleviate
poverty in rural areas by providing small loans to its clients through credit
associations of which the results are highly positive. Data was collected and
interpreted to enable researcher draw conclusion.
MFIs contribute to the socio-economic activity of the
beneficiaries by providing small and affordable loans, insurance and repayment
services. In addition to this, they provide social inter mediation services
such as management capabilities and training of financial literacy.
To get the impact of Microfinance institutions, COPEDU Ltd was
selected for the study with a sample of 10 respondents(managers and official
employees) and 20 respondents on beneficiaries. This study was helpful since
the researcher came to know that MFIs are greatly contributing to poverty
alleviation and came to know the problems managers encounter in running their
business. Microfinance has recently become the favorite intervention for
development institutions, due to its unique potential for poverty alleviation
and financial sustainability. However, contrary to what some many claims, MF is
not a solution for poverty alleviation.
In fact, a poorly designed MF activity can make things worse
by disrupting informal markets that have reliably provided financial services
to poor households over the past couple of centuries, all but at high cost.
There are many situations in which Microfinance is neither the
most important nor the most feasible activity for a Donor or other agency to
support. Infrastructures, health, education and other social services are
critical to balanced economic development. And each in this own way contributes
to a better environment for Microfinance activities in future.
To the government and central Bank, among serious critics is
that it is more controlling and supporting. Care should be taken to ensure that
the provision of microfinance is truly demand driven, rather than simply a
means to satisfy donor agendas.
According to the World Bank (2005; 7) the role of different
players is paramount in struggling against poverty. Since poverty is caused by
multiplicity of factors: no single solution to it can suffice, rather the
government, NGOs and financial institutions should be ready to support such
good steps.
5.3: RECOMMENDATIONS
COPEDU Ltd was established in September 1997so as to solve the
increasing need of financial services for socio-economic empowerment of
Rwandans who were trying to get out their living conditions.
Today,COPEDU Ltdworks with both men and women, with more
emphasis on women 64%. The main targeted people being the rural areas based who
were trying to find means of surviving and managing their socio-economic
activities.
Therefore, for the MFIs to be successful in achieving the
objectives for which it was set up for, the following recommendations should be
considered:
5.3.1: Recommendations toCOPEDU
Ltd
COPEDU Ltd should organize a credit training program at least
three times a month. Credit officers about the background ofCOPEDU Ltd and its
services should hold consecutive meetings. This is to properly service ofCOPEDU
Ltd activities into better line for customers.
The main activities inCOPEDU Ltd is to provide loan/credit,
there is seriously a need for proper loanmanagement and an organized repayment,
business up dates, strengthening ofCOPEDU Ltd solidarity and responsibility and
encouraging them for internal visitation. This should be done to build skills
and capacity ofCOPEDU Ltd members to ensure success of their business,
management, quality repayment of proper circulation of loans to other targeted
people of Rwanda.
The study revealed that most of the employees inCOPEDU Ltd
have no skills potential. They have unqualified and inexperienced skills, there
is very important in making their business a success. Thus training should be
provided so that their activities and the impact they have on poverty reduction
can be enhanced.COPEDU Ltd should sanctions provided in case of delay for
repayment of credit, not following designed ruled and put in place mechanisms
adapted to circumstances and level of organization of COPEDU Ltd through
delegating the customers.
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