ADRIEN NZAYISENGA

i
UNIVESITY OF TOURISM TECHNOLOGY AND BUSINESS STUDIES
(UTB)
P.O. Box 350 KIGALI, RWANDA
Submitted By:
ALIETE
Registration number: 00/14/G
Under the guidance and supervision of:
Mr.
University of Tourism Technology and Business Studies in partial fulfillment of
requirement for the award of the Bachelor’s degree in Business Management
Department of Business Management
September, 2017
THE ROLE OF MICROFINANCE INSTITUTIONS IN POVERTY
ALLEVIATION IN RWANDA
CASE STUDY: AMASEZERANO COMMUNITY BANKING LTD

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DECLARATION
I ALIETE do declare that this research project is my own work. I have to the best of my
knowledge acknowledged all authors or sources from where I got information. I further declare
that this work has not been submitted to any university or institution for the award of a degree or
any of its equivalents.
Signed............................................. Date.......................................................................

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APPROVAL
This is to acknowledge that this research project has been submitted with my approval.
Signed…………………………………………Date………………………………….
Supervisor:

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DEDICATION
This research is dedicated to my father,
To my mother,
To my brothers and sisters

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ACKNOWLEDGEMENT
I thank the Almighty God for giving me courage, wisdom, time and energy to complete my
research. I pay gratitude to my dear mother my other mothers , uncles, aunties, and brothers for
nursing me physically materially spiritually and above all paying my school fees up to the
highest institution may God award them in paradise
I cannot forget my research supervisor Mr. …………for encouragement and guidance in the
whole research process thanks for being patient and a good man may God awards you in
abundance.
Lastly I give thanks to my friends and all my classmates and many others I hold at heart for their
material support and encouragement when still at compass

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LIST OF SYMBOLSABBREVIATIONS ACCRONONYMS
$ : Dollar
% : percentage
AEE : African evangelist enterprise
CGAP : Consultative Group to Assist the Poor
DC : Direct current
ICT : Information and communication technology
MDGs : Millennium Development Goals
MFIs : Microfinance institutions
NGOs : Non-profit organizations
SACCO: Savings and Credit Cooperatives
SHGs : Self-Help Group
US : united state
UTB : university of tourism technology and business studies
VUP : Umurenge Program

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LIST OF APPENDICES
APPENDICES I:QUESTIONNAIRES WERE ADMINISTERED TO EMPLOYEES AND
CUSTOMERS OF AMASERANO COMMUNITY BANKINGError! Bookmark
not defined.a

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LIST OF TABLES
Table 1: Characteristics of respondents by marital status ................................................................... 31
Table2: Characteristics of the respondents by educational level .......................................................... 32
Table 3: Research Question One, What is the contribution of Umurenge Sacco Ishakwe in
poverty reduction?.....................................................................................................................30
Table 4: Research Question Two, What are the challenges facing Umurenge Sacco Ishakwe in
poverty reduction?………………………………………………………….................................32
Table5: Research Question Three, What are possible solutions to the challenges facing
Umurenge Sacco in poverty reduction?........................................................................................33

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TABLE OF CONTENTS
DECLARATION............................................................................................................................. 1
APPROVAL.................................................................................................................................... 2
DEDICATION................................................................................................................................. 3
ACKNOWLEDGEMENT............................................................................................................... 4
LIST OF SYMBOLSABBREVIATIONS ACCRONONYMS........................................................ 5
LIST OF APPENDICES.................................................................................................................. 6
LIST OF TABLES........................................................................................................................... 7
ABSTRACT.............................................................................................Error! Bookmark not defined.
CHAPTER ONE:....................................................................................Error! Bookmark not defined.
BACKGROUND OF THE STUDY.........................................................Error! Bookmark not defined.
1.1. Introduction................................................................................. Error! Bookmark not defined.
1.2. Background of the study............................................................... Error! Bookmark not defined.
1.3. Problem Statement....................................................................... Error! Bookmark not defined.
1.3.1. The general objective.................................................................. Error! Bookmark not defined.
1.3.2. Specific objectives...................................................................... Error! Bookmark not defined.
1.4. Research questions ........................................................................ Error! Bookmark not defined.
1.5. Significance of the study................................................................ Error! Bookmark not defined.
1.5.1. To the researcher........................................................................ Error! Bookmark not defined.
1.5.2. To UTB..................................................................................... Error! Bookmark not defined.
1.5.3. To the community ...................................................................... Error! Bookmark not defined.
1.6. Scope of the study......................................................................... Error! Bookmark not defined.
1.6.2. Content scope............................................................................. Error! Bookmark not defined.
1.6.3. Time scope ................................................................................ Error! Bookmark not defined.
1.7. Limitations of the study.................................................................Error! Bookmark not defined.
1.8. Summary of the Chapter................................................................ Error! Bookmark not defined.
CHAPTER TWO.............................................................................................................................. i
LITERATURE REVIEW.............................................................................................................. 16
2.1. Introduction ...............................................................................................................................16
2.2. Definitions of key Terms ............................................................................................................16
2.2.1. Microfinance institutions .........................................................................................................16
2.2.2. Poverty reduction ....................................................................................................................16

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2.5. Summary of the Chapter.............................................................................................................26
RESEARCH METHODOLOGY....................................................... Error! Bookmark not defined.
3.1. Introduction .................................................................................. Error! Bookmark not defined.
3.2. Research design ............................................................................ Error! Bookmark not defined.
3.3.1. Sample Selection Technique ....................................................... Error! Bookmark not defined.
3.3 Tools for data collection/ Instrumentation........................................ Error! Bookmark not defined.
3.3.1. Documentation........................................................................... Error! Bookmark not defined.
3.3.2. The questionnaire ....................................................................... Error! Bookmark not defined.
3.4. Sources of data collection .............................................................. Error! Bookmark not defined.
3.4.2. Secondary data........................................................................... Error! Bookmark not defined.
3.5. Data Analysis................................................................................ Error! Bookmark not defined.
3.5.1. Editing....................................................................................... Error! Bookmark not defined.
3.6. Validity and reliability of the research............................................ Error! Bookmark not defined.
3.7. Ethical consideration ..................................................................... Error! Bookmark not defined.
3.8. Summary of the chapter.................................................................Error! Bookmark not defined.
CHAPTER FOUR ......................................................................................................................... 31
DATA PRESENTATION, ANALYSIS AND INTERPRETATION............................................... 31
4.1. Introduction ...............................................................................................................................31
4.2. Bio Data of Respondents.............................................................................................................31
4.2.1. Marital status of the Respondents .............................................................................................31
Table 1: Characteristics of respondents by marital status .....................................................................31
4.2.2.Educational level of the respondents ..........................................................................................32
Table2: Characteristics of the respondents by educational level ...........................................................32
CHAPTER FIVE........................................................................................................................... 36
SUMMARYOF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS ............................ 36
5.1. Introduction ...............................................................................................................................36
5.2. Summary of the Study ................................................................................................................36
5.3. Conclusions ...............................................................................................................................37
5.5. Areas for Further Researcher.......................................................................................................38
REFERENCES...............................................................................................................................38
APPENDICES................................................................................................................................41

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CHAPTER ONE: GENERAL INTRODUCTION AND BACK ROUND OF THE STUDY.
1.1 Introduction
Microfinance refers to the provision of financial services to the poor-low income clients,
including, consumers and the self - employed (Lidgerwood, 2000),Christen et al (2004) asserted
that microfinance refers to a movement that envisions “a world which as many poor and near-
poor households as possible have permanent access to an appropriate range of high quality
finance services and the management of small amounts of money through a range of products
and a system of intermediary functions that are targeted at low income clients. Today,
microfinance institutions view permanent reduction of poverty by addressing the multiple
dimension of poverty with the aim of reaching specific Millennium Development Goals (MDGs)
in education, women's empowerment, and health, among others. Even if developing countries
need to integrate microfinance programs, developed countries do also take it as an essential
element in their financial system.
The first chapter of this study presents the background to the study, problem statement, general
objective, specific objectives, research questions, scope of the study, significant of the study and
limitations of the study.
1.2. Background of the study
Around the world Micro financing can be traced back as long to the middle of the 1800s when
the theorist Lysander Spooner was writing over the benefits from small credits to entrepreneurs
and farmers as a way getting the people out of poverty. But it was at the end of World War II
with the Marshall plan the concept had an big impact. The today use of the expression micro
financing has it roots in the 1970s when organizations, such as Grameen Bank of Bangladesh
with the microfinance pioneer Mohammad Yunus, where starting and shaping the modern
industry of micro financing. Another pioneer in this sector is Akhtar Hameed Khan. At that time
a new wave of microfinance initiatives introduced many new innovations into the sector. Many

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pioneering enterprises began experimenting with loaning to the underserved people. The main
reason why microfinance is dated to the 1970s is that the programs could show that people can
be relied on to repay their loans and that it´s possible to provide financial services to poor people
through market based enterprises without subsidy. Shore bank was the first microfinance and
community development bank founded 1974 in Chicago.
Today the World Bank estimates that more than 16 million people are served by some 7000
microfinance institutions all over the world. CGAP experts mean that about 500 million families
benefits from these small loans making new business possible. In a gathering at a Microcredit
Summit in Washington DC the goal was reaching 100 million of the world´s poorest people by
credits from the world leaders and major financial institutions. The year 2005 was proclaimed as
the International year of Microcredit by The Economic and Social Council of the United Nations
in a call for the financial and building sector to “fuel” the strong entrepreneurial spirit of the poor
people around the world.
Agriculture credit, donors set up credit unions inspired by the raiffeisen model developed in
Germany in 1864. The focus of these cooperative financial institutions was mostly on saving
mobilization in rural areas in an attempt to teach poor farmers how to save.
Beginning in the mid-1880s in some parts of Africa the subsidized targeted credit model
supported by many donors, was the object of steady criticism because most programs
accumulated large losses and frequent recapitalization to continue operating. It became more and
more and more evident that market based solutions were required. This led to new approach that
considered microfinance as an integral part of the overall financial system .emphasis shifted from
the rapid disbursement of subsidized loan to target population towards building of local,
substantially and donors actively support and encourage microfinance activities, focusing on
MFIs that are committed to achieving substantial outreach and financial services
According to hominin Marlboro general manager consultative group to assist the poorest said
that: Microfinance is the provision of banking services for the poor. Over the past 20years the
field has been revolutionaries d as dozens of microfinance institutions have demonstrated the

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feasibility of delivering such services on financial sustainable basis. Today the World Bank
estimates that more than 200 million people are served by some 70000 microfinance institutions
all over the world. But many credit unions, especially in Africa are offering microfinance
services and few licensed finance companies and commercial banks are beginning to enter the
market. At present, most finance institutions are funded by donors and government.
After the 1994 Genocide in Rwanda, the microfinance sector has known a dramatic progress
through the support of relevant international and non-government organizations especially for
humanitarians. These NGOs helped people by support of daily use of equipment, foods but had
also the microcredit teaching program. During the emergency period, in some cases the loans do
not differ to grants or donations and sowed confusion among the population. Thus has developed
the culture of not paying normal bank loans which caused non-performing loans primarily in
the Bank Populaire, at a rate of around 45%. When the Government embarked on a development
phase, many NGOs have turned and became microfinance institutions without too much
professionalism.
Amasezerano community banking was initiated by the NGO African evangelistic enterprise with
60 individuals. The African evangelist enterprise (AEE) is the majority shareholder with 90.15%
shares. It was approved by the national bank of Rwanda on 20/o7/2006. It started its activities of
collecting deposit and granting loans on 21/08/2006. On June 2006, Amasezerano community
banking was granted official approval of collecting deposits and offer loans as a microfinance
institution by the national bank of Rwanda. Operations officially began on 21 august, 2006 from
amasezerano community bank’s main branch in kicukiro, a neighborhood in Kigali, the capital of
Rwanda. Since it was founded, amasezerano was grow at a remarkable rate, and continued to
work towards its vision of banking a significant contribution to the advancement of poor
Rwandans while maintaining financial sustainability. In Kinyarwanda amasezerano, means
promise. For amasezerano living up to this name means playing an active role in empowering a
population scared by war and terrible genocide of 1994, so that poor Rwandans can enjoy
prosperity, dignity and peace. Its mission is to provide a holistic impact on the lives of poor by
providing quality financial services. Clients: acb’s client is composed primarily of farmers, small
business owners, women entrepreneurs and low-wage private-sector salaried workers. Savings

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offerings include checking accounts, fixed deposit account, and saving account. Credit offerings
are tailored to meet the client needs and include group solidarity loans, agricultural loans and
loans for women entrepreneurs, loans for small businesses and loans for salaried workers. Acb
also offers money transfer, currency exchange and life insurance to its borrowers.
1.2. Statement of the problem
Rwanda is one of poor countries in the world with most of its people below the poverty line. This
implies that they cannot have access to financial services offered by formal or commercial
institution and lack of access to financial services like credit and savings is a barrier to the
development of an individual in particular and for the country in general. Microfinance launched
to help the people who are not able to afford the credit in commercial institutions, microfinance
institution was created. (Davis et al, 2014). However less or little attention is paid on
microfinance institution which operates with the smallest economic household’s involvement is
shown by the lack of legal and operational measures adopted in such direction. Therefore this
study indents to assess the role of microfinance institutions on poverty alleviation in Rwanda.
1.3. Objectives of study
1.3.1. General objectives
The general objective of study was to examine the role of microfinance institutions on poverty
alleviation in Rwanda.
1.3. 2. Specific objectives
1. To find out the role of Amaserano community banking in poverty alleviation.
2. To examine the challenges Amaserano Community banking facing in delivering credit service
to the citizens.
3. To propose the possible solutions to the challenges Amaserano Community banking facing in
delivering credit service to the citizens.
1.4. Researchquestions
1. What is the role of Amaserano community banking in poverty alleviation?

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2. What are the challenges Amaserano Community banking facing in delivering credit service to
the citizens?
3. What are the possible solutions to the challenges Amaserano Community banking facing in
delivering credit service to the citizens?
1.5. Significance of the study
1.5.1. To the researcher
This study helped the researcher to understand more about the role of microfinance institutions
on poverty reduction in Rwanda, and it helped the researcher to get bachelor degree in business
management.
1.5.2. To UTB
The research findings constituted to strong and a good reference for those who want to enhance
their knowledge in same field
1.5.3. Community
This study was helpful to the micro finance institutions to ensure the part play in poverty
alleviation as long as they are providing loans to the citizens to improve their standard of livings
and not only that but also the community researchers l used this study as reference tool especially
for those who served under micro finance institutions.
1.6. Scope of the study
1.6.1. Geographical scope
This study was limited to Amaserano community banking Ltd, located in Gasabo district in
Remera sector, the reason being the researcher found adequate information concerning to the
searched topic.
1.6.2. Content scope

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This study was centered to the role of microfinance institutions in poverty alleviation in Rwanda.
Where by microfinance institutions is independent variable and poverty alleviation is dependent
variable.
1.6.3. Time Scope
The reference period of this study was the period of five years from 2011 to 2016; the researcher
used this time scope because in this period many of the citizens picked loans from Amaserano
community banking.
1.7. Limitation of study
The researcher faced insufficient time when the researcher gathered data from the field. To solve
this issue the researcher tried to work hard.
The respondents was doubtful to respondent the questionnaires because some of them thought
the questionnaires politically. To overcome this challenge the researcher indicated the purpose of
this study.
1.8. Summary of the Chapter
This first chapter comprised the elements show why is of crucial to conduct this work. The
chapter composed by situation of microfinance institutions on poverty alleviation around the
world, to the continent, regional and domestically, it also shows problem statement, objectives of
the study, research questions, significance of the study, and scope of the study and limitation of
this study

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CHAPTER TWO
LITERATURE REVIEW
2.1. Introduction
This chapter covered the literature of different authors searched on the same topic predominantly
to the current problem researcher focus on; this shows definition of key terms made up of the
topic and reviews to the selected objectives of the study.
2.2. Definitions of key Terms
2.2.1. Microfinance institutions
Microfinance institutions specializing in banking services for low-income groups or individuals,
A microfinance institution provides account services to small-balance accounts that would not
normally be accepted by traditional banks, and offers transaction services for amounts that may
be smaller than the average transaction fees charged by mainstream financial
institutions.(Admson et al, 2001)
2.2.2. Poverty alleviation
Poverty alleviation is a set of measures, both economic and humanitarian, that are intended to
permanently lift people out of poverty. Poverty alleviation also involves improving the living
conditions of people who are already poor. Aid, particularly in medical and scientific areas, is
essential in providing better lives, such as the Green Revolution and the eradication of smallpox.
Problems with today's development aid include the high proportion of tied aid, which mandates
receiving nations to buy products, often more expensive, originating only from donor countries
(Sort, 1998).
2.3.Role of Amaserano community banking in poverty alleviation.

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2.3.1. Increase the domestic interconnectivity
Increase the domestic interconnectivity of the Rwandan economy through investments in hard
and soft infrastructure by meeting the energy demand of the private sector; increasing access to
public goods and resources in priority sectors of the economy; and deepening the integration of
key value chains. Transform the private sector by increasing investment in priority sectors. The
investment process will target large foreign investors in priority sectors of the economy;
accelerate measures to increase long-term savings, transform the financial sector for increased
access to long term international and domestic financing for private sector, strengthen tax and
regulatory reform to spur medium and large enterprise growth and attract large investors.
Increase the Productivity of Agriculture by building on the sector’s comparative advantage. The
focus is therefore on irrigation and land husbandry, proximity advisory services for crops and
livestock and connecting farmers to agribusiness.(RDCDS, 1995).
2.3.2. Create employment
Microfinance institutions enable reduce Extreme Poverty by giving the citizens loan to startup
and this started organization provide employment to the citizens, supporting financial products,
services and literacy for the poorest, strengthening microfinace, and improving the coverage and
targeting of core social protection programs such as VUP. Graduation will also mean linking the
poorest to Economic activity through the provision of skills, Connect Rural Communities to
Economic Opportunity through Improved Infrastructure, Interventions will include a feeder
roads programs and information and communications technologies expansion for rural areas with
the aim of linking communities to markets, the electrification programs, modern biomass and
other cooking methods, and full coverage of quality water and sanitation.(saunders et al, 2003).
2.3.3. Stimulate Entrepreneurship,
Microfinances stimulate entrepreneurship by Access to Finance and Business Development by
increasing off-farm employment, productivity and new job creation driven by the private sector,
The government will consolidate, rationalize and expand different business support programs
into an Integrated National Employment Program to boost entrepreneurship and job creation and
this Strengthen Citizen Participation and Demand for Accountability by using “home grown

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initiatives” to promote citizen participation; using ICT and radio to promote participation and
development communication; strengthening the media and civil society organizations to better
Fulfill their developmental role and strengthening administrative decentralization.(saint,1992).
2.3.4. Labor Market Interventions
Microfinance helps to get Labor Market Interventions; Government will improve the efficiency
of labor markets by assisting job seekers match to match with job providers through Employment
Service and Career Advisory Centers. On the other hand a number of opportunities exist;
Rwanda’s favorable dependency ratio can a demographic dividend based on its youthful labor
force and the demands for good and services arising from increasing urbanization. Domestic
political and economic stability and an attractive regulatory environment are positive for private
investment and doing business. The improving literacy and numeracy of the population provides
the basis for a more skilled national workforce. The existing decentralized modalities for
development and service delivery, often based on traditional institutions, are platforms for
increased engagement of citizens in planning and delivery. Increased regional integration can
massively expand market potential and economies of scale. Rwanda’s alertness and pro-
activeness in environment mainstreaming can provide a natural center for green growth and
investment.(Monroth et al, 2006).
Microfinance is the practice of extending a small loan or other form of credit, savings, checking,
or insurance products to individuals who do not have access to this type of capital. This allows
individuals who are living in poverty to work on becoming financially independent so they can
work their way into better living conditions.
2.3.5. It allows people to better provide for their families.
Microfinance allows for an added level of resiliency in the developing world. Even when
households are able to work their way out of poverty, it often takes just one adverse event to
send them right back into it. It’s often a health care issue that causes a return to poverty. By
allowing entrepreneurs to become more resilient through their own efforts at their own business,
it gives them the opportunity to make it through times of economic difficulty. Most of the
households that take advantage of the microfinance offers that are available in developing

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countries live in what would be considered “abject poverty.” This is defined as living on $1.25
per day or less – though some definitions extend this amount to $2 per day or more. About 80%
of that amount goes to the purchase or creation of food resources. By offering microfinance
products that can be repaid with that remaining 20%, more households have the opportunity to
expand their current opportunities so that more income accumulation may occur.( Efsian et al,
2008).
2.3.6. It gives people access to credit.
Muhammad Yunus, who is often credited as the modern father of microfinance, once gave $27 to
women out of his own pocket because he saw how the cycle of debt affected their work crafting
bamboo chairs. Most banks will not extend loans to someone without credit or collateral because
of the risks involved in doing so, yet those in poverty do not have any credit or collateral. By
extending microfinance opportunities, people have access to small amounts of credit, which can
then stop poverty at a rapid pace. Yunus has always believed that credit is a fundamental human
right. There are certainly some financial institutions which may disagree with his assessment.
Yet without credit, it can be difficult, if not impossible for someone in poverty, to pursue an idea
that could bring about a giant payday one day. Microfinance makes that pursuit possible.(Peter et
al, 2014).
2.3.7. It serves those who are often overlooked in society.
In many developing nations, the primary recipient of microloans tends to be women. Up to 95%
of some loan products are extended by microfinance institutions are given to women. Those with
disabilities, those who are unemployed, and even those who simply beg to meet their basic needs
are also recipients of microfinance products that can help them take control of their own lives.
Women are key figures in leadership roles in business, even in the developed world. Catalyst has
reported that companies with female board directors are able to obtain returns that are up to 66%
better in returns on invested capital and 42% better in terms of sales returns than companies with
male board members only, Women also develop others more frequently when it comes to
entrepreneurial roles. This comes from coaching, feedback, or investments. Even in the

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developed world, women helping women is an economic force that poverty can’t stop. .(World
bank report, 2016).
2.3.8. It provides families with an opportunity to provide an education to their children.
Children who are living in poverty are more likely to have missed school days or to not even be
enrolled in school at all. This is because the majority of families who live in poverty are working
in the agricultural sector. The families need the children to be working and productive so their
financial needs can be met. By receiving micro financing products, there is less of a threat of
going without funding, and that means more opportunities for children to stay in school. This is
especially important for families with girls. When girls receive just 8 years of a formal
education, they are four times less likely to become married young. They are less likely to have a
teen pregnancy. In return, this makes girls more likely to finish schooling and then either obtain a
fair-paying job or go onto a further educational opportunity.( Igabe et al, 2010).
2.3.9. It creates the possibility of future investments.
The problem with poverty is that it is a cycle that perpetuates itself. When there is a lack of
money, there is a lack of food. When there is a lack of clean water, there is a lack of sanitary
living conditions. When people are suffering from malnutrition, they are less likely to work. A
lack of sanitation creates the potential of illness that prevents working days. Microfinance
changes this by making more money available. When basic needs are met, families can then
invest into better wells, better sanitation, and afford the time it may take to access the health care
they need. As these basic needs are met, it also means that there are fewer interruptions to the
routine. People can stay more productive. Kids can stay in school more consistently. Better
healthcare can be obtained. This creates a lower average family size because there are more
guarantees of survival in place. And when that happens, the possibility of future investments will
occur because there is more confidence in being able to meet basic needs.( David et al, 2004).
Types of Poverty in Rwanda

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1. Absolute Poverty
It is the extreme kind of poverty involving the chronic lack of basic food, clean water, health and
housing. People in absolute poverty tend to struggle to live and experience a lot of child deaths
from preventable diseases like malaria, cholera and water-contamination related diseases. This
type is usually long term in nature, and often handed to them by generations before them. This
kind of poverty is usually not common in the developed world.(Gasore, 2006).
2. Relative Poverty
This kind is usually in relation to other members and families in the society. For example, a
family can be considered poor if it cannot afford vacations, or cannot buy presents for children at
Christmas, or cannot send its young to the university. Even though they have access to
government support for food, water, medicine and free housing, they are considered poor
because the rest of the community have access to superior services and amenities.(Kenny et al,
2005).
4. Generational or Chronic Poverty
This is a more complicated type and we will see a detailed example here. This is when poverty is
handed over to individuals and families from generations before them. In this type, there is
usually no escape from it, as people are trapped in its causes and have no access to tools under
here people are completely poor whom cannot do anything for them.(Rukara et al, 2003).
Categories of microfinance institutions in Rwanda
1. Licensed MFIs-public limited companies
The notion of microfinance should be clarified in order to identify the institutions that provide
microfinance services in the true sense. The licensed MFIs-public limited companies including

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all the public microfinance institutions have the citizens bought the share in it. This is
particularly important in the Rwandan market, as microfinance services are provided not only by
Microfinance Institutions, but also by established commercial banks that are muscling into what
they see as a profitable business with significant growth potential. From the interviews
conducted with various stakeholders, it emerged that microfinance should serve the needs of
specific target groups. The recurring feature in the definition of microfinance clients is the
inability or impossibility to access formal financial channels and lack of guarantees, often
coupled with social exclusion, illiteracy, poor working and living conditions. From a more
practical point of view, microfinance clients have also been defined in terms of short time
planning horizon, which is typical of people belonging to underprivileged backgrounds. To them,
life is a daily struggle. For those individuals, thinking about their projects in three years’ time
might seem unrealistic, as they are mostly concerned about how to get through the day or how to
deal with immediate needs. In this situation, most people adopt a short-term view as any
unexpected event might compromise a fragile balance. Interestingly enough, according to one
interviewee, microfinance clients are those who need a regular contact with MFI and go to the
teller virtually every day. In this case, microfinance is related to transaction frequency and
physical presence. (BNR report, 2015)
2. Licensed SACCOs
The Ministry of Finance and Economic Planning (MINECOFIN) is the lead institution driving
the implementation of this National Financial Education Strategy. It should be noted that
Umurenge SACCOs are partners of paramount importance. First of all, they have excellent
geographical coverage, reaching deep into the country, in areas where most financial institutions
have limited operations. There is also significant scope to expand the client base with an
estimated 91% of Rwandans living within 5 km of an Umurenge SACCO. According to the
Rwanda Cooperative Agency (RCA), SACCOs have approximately 2.3 million members,
corresponding to an average membership of 44% of each district’s adult population. Secondly,
80% of Umurenge SACCO clients live in rural areas, so it is more likely to reach rural adults
with low education levels.. Such individuals temporarily come together and generate a common
fund to meet the emergency needs of their business. These groups are generally non-profit
organizations. The group assumes the responsibility of debt recovery. The advantage of this
micro-lending system is that there is no need for collateral. (BNR report, 2015)

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2.4. The challenges microfinance institutions facing in delivering credit service to the
citizens.
2.4.1. Poor infrastructure
Umurenge Sacco’s cannot make the best use of their services to reach the poor people if some
of the key parts of the country’s physical infrastructure are poor. Sacco had difficulty in
reaching the very poor people in remoteness areas due to poor infrastructures available in the
area. Bakhtaran, (2006) found that, most of Sacco preferred to operate in urban areas due to
heavy transaction cost associated with rural credit operations thereby denying the rural poor
access to financial services. The poor infrastructure of some Umurenge Sacco located in the
remote area also becoming challenge because some of this cooperatives have not enough
money and others different modern resources to be used in this modern era. This limit Sacco
in providing loans to the citizens need to pick up huge amount of money to invest in the
economic activities that will make them alleviation poverty and for others and the country in
general. (Easing wood, 1996).
2.4.2. Insufficient coordination
Insufficient coordination and communication across sectors as well as between central and local
Government entities, In general, districts and sectors both expressed need for better sharing of
information and improved coordination for implementation among others. Many of the Sacco
organization have no strong coordination due to aspects like limited knowledge , resources and
not conserving much more money, this is a big challenge because all issues arising nowadays in
the organization came from the pool leaders of those organization.(Lewis et al, 2010).
2.4.3. Lack of secrecy
Microfinance does not maintain any secrecy in business because the affairs of the society are
openly discussed in the meetings. But secrecy is very important for the success of a business
organization. This paved the way for competitors to compete in better manner and the
management of the society constitutes the various types of personnel from different social,
economic and academic background. Many a times they strongly differ from each other on many

24
important issues. This becomes detrimental to the interest of the society. The different opinions
and disputes may paralyses the effectiveness of the management.(thorn et al, 2003).
2.4.4. Limited resources
Microfinance financial strength depends on the cap contributed by its members and loan raising
capacity from state cooperative banks. The membership fee is limited for which they are unable
to raise large amount of resources as their members belong to the lower and middle class. Thus,
cooperative are not suitable for the large scale business which require huge capital. The members
may not feel enthusiastic because the law governing the cooperatives put some restriction on the
rate of return. Absence of relationship between work and reward discourage the members to put
their maximum effort in the society.
2.4.5. Inefficient management
A cooperative society is managed by the members only. They do not possess any managerial and
special skills. This is considered as major drawback of this sector. Inefficiency of management
may not bring success to the societies. The cooperative societies sell their products to outsiders
only in cash. But, they are usually from the poor sections. These persons require availing credit
facilities which are not possible in the case of cooperatives. Hence, marketing is a shortcoming
for the cooperatives and Government put their nominee in the Board of management of
cooperative society. They influence the decision of the Board which may or may not be
favorable for the interest of the society. Excessive state regulation, interference with the
flexibility of its operation affects adversely the efficiency of the management of the
society.(Hewhan, 1997).
2.5. Solutions to the challenges microfinance institutions facing in delivering credit service
to the citizens.
2.5.1. Democratic management
Microfinance should be managed by the elected members from and among themselves to address
these challenges of insufficient coordination and insufficient management. Every member has
equal rights through its single vote but can take active part in' the formulation of the policies of
the society. Thus all members are equally important for the society. Government provides special

25
assistance to the societies to enable them to achieve their objectives successfully. Therefore, the
societies are given financial at lower rates. Government also extends much type of subsidies to
cooperative societies strengthening their financial stability and sustainable growth in
future.(Levi, 2005).
2.4.6. Strengthening effectiveness of Sacco finance management
Strengthening effectiveness of microfinance finance management, this will focus on the
continued increase of resource mobilization from domestic and alternative sources of finance,
scaling up of the implementation of the Integrated Financial Management Information System,
enhancing capacity at the National and District levels and The operation carried on by the
cooperative society economical due to the eliminations of middlemen. The services of
middlemen are provided by the members of the society with the minimum cost. In the case of
cooperative society, the recurring and non-recurring expenses are very less. Further, the
economies of scale-ma production or purchase, automatically reduces the procurement price of
the goods, thereby minimizes the selling price.(Levin, 2002).
2.4.7. Capacity Building
Capacity Building through prioritizing institutional and individual capacity development within
sectors and districts to deliver under each of the thematic areas and foundational issues, a
cooperative society cannot be dissolved by the death insolvency, lunacy, and permanent
incapability of the members. Therefore, it has stable life are continues to exist for a longer
period. It has got separate legal existence. New members join and old members may quit the
society but society continues to function unless are otherwise all members unanimously decided
to close the same. In most cases, the liabilities of the members of the society are limited to the
extent of capital contributed by them. Hence, they are relieved from the fear of attachment of
their private property, in case of the society suffers financial losses. (Laidlaw,1974).
2.4.8. Service motive
In Cooperative society members are provided with better good and services at reasonable prices.
The society also provides financial help to its members the concessional rates. It assists in setting

26
up production units and marketing of produces c small business houses so also small farmers for
their agricultural products. The formation of a cooperative society is very simple as compared to
the formation of any other form of business organizations. Any ten adults can join together and
form a cooperative society. The procedure involves in the registration of a cooperative society is
very simple and easy. No legal formalities are required for the formation of cooperative society.
Unless and otherwise specifically debarred, the membership of cooperative society is open to
everybody. Nobody is obstructed to join on the basis of religion, caste, creed, sex and color etc.
A person can become a member of a society at any time he likes and can leave the society when
he does not like to continue as member.(Storey, 1996).
2.5. Summary of the Chapter
This chapter covers the definitions of key terms made up the searched topic and the literature
of different authors wrote to the same subject as of the researcher, the data was collected from
books, articles, journals and magazines. The literature was based to the specific objectives
which were the Role of microfinance in poverty reduction, the challenges facing microfinance
in poverty reduction, possible solution to the challenges facing microfinance in poverty
reduction.
CHAPTER THREE

27
RESEARCH METHODOLOGY
3.1. Introduction
This chapter describes the methodology that used by the researcher including research design,
population, simple size, sample size, sampling techniques, tools of data collection, research
instruments, data analysis and limitation of the study, ethical consideration, validity and
reliability of the research.
3.1. Research design
This study used a descriptive study design. This design used to show impact marketing
communication tools has to consumers’ purchase decision making. The qualitative and
quantitative techniques used in describing the answers given to the interviewed questions, which
respondents gave including theoretical and mathematical expressions.
3.2.1 Study Population
The population of the study composed by the clients of Amaserano community banking,
According to the manager, the numbers of clients in Amaserano community banking in the
selected time scope is 784.
3.2.2. Sample Selection Technique
The study used probability sampling technique and Purposive sampling technique; the
probability Sampling is sampling method in which the sample members have equal chances to
participate in the study. This used to select the clients who were taken accidently since all
members have the right to participate.
Purposive Sampling, Grinnell 1990:122) defines purposive sampling as a “type of sampling in
which the research choose the population purposively in taking into account the persons who are
able to give him the information needed in selected units. The researcher used purposive
sampling technique to the clients who are familiar with all activities concerning to the
microfinance activities.
3.3.3. Sample size

28
The total population was not be used of 784 due to aspect like funds, time and the researcher will
use this formula to determine sample size (Yamane, 1970), n =
N
1+N(e)2
and came up with 87 as
final respondents to answer the questionnaires..
N: the universe is 784 people
n: the sample size
E: error rate =10%
n =
784
1+784∗0.10∗0.10
= 87
The study will use the sample size of 87 respondents that will answer the selected question
mentioned in the questionnaires as the final respondents chosen by the researcher to represent the
entire population among this sample size will include employees and customers of Amaserano
community banking.
3.3 Tools for data collection/ Instrumentation
The information from the primary data is obtained through a structured questionnaire and an
interview schedule while documentary search is applied to obtain a secondary data for this
research.
3.3.1. Documentation
The researcher consulted from other books wrote to the same subject like new papers, internet;
magazines and novels, the researcher gathered the countable information from the previously
accessible sources
3.3.2. The questionnaire
In this research the questionnaires was contained both closed and open ended questions system.
87 sampled respondents (clients of Amasezerano community banking), they were given
questionnaires to represent the entire population.
3.3.3. Interview

29
An interview is a conversation between two or more people where questions are asked by the
interviewer face to face to interviewee. Interviews are a standard part of qualitative research. The
interview was conducted to the literacy clients of Amaserano banking community.
3.4. Sources of data collection
Data was collected through two phases such us: primary data and secondary data.
3.4.1. Primary data
Primary source of data the collection refers to the process of collecting first hand data. Primary
method of data collection refers to the data collected first hand by the researcher only to be
utilized for research it was collected for. In simple, any data that is already available is primary
data. The primary data gathered from the field by using questionnaire and interview.
3.4.2. Secondary data
Secondary source of data collection refers to already collected data and sometimes also called
second hand data. This data was collected by from internet, books, articles, magazines and
journals about marketing communication tools.
3.5. Data Analysis
The collected data was analyzed through the application of simple statistical techniques
including frequency distribution and correlation analysis. Correlation statistical technique helped
in identifying the association between the variables of the study.
3.5.1. Editing
According to Roger (1978), editing is the process of going through the questionnaires to answer
that the skip partners were followed and required questionnaire filled out. The purpose of editing
is that careful scrutiny of all collected questionnaires to produce completeness, error-free and
readability.
3.5.3. Tabulation
The researcher inserted the data into tabular form after coding them. The researcher added the
tally marks or scores under each category to establish the number of times each of the different

30
answer were given to each category. The researcher calculated this inform of tables and
percentages. This helped the researcher to describe obvious conclusion of the research the study.
3.6. Validity and reliability of the research
3.6.1. Validity
Validity is defined as the context to which data collection method are accurately measure what
they were intended to measure. Validity is concerned with whether the findings are really about
what they appear to be about (Saunders et al., 2003) and therefore the researcher ensured that
research questions are in line with research variables and research questions.
3.6.2. Reliability
Reliability refers to ensure that the information given by respondents are reliable and
consistency, the researcher used open ended questionnaires, closed ended questionnaires and
interview as consistent instruments, in order to get measured, reliable and consistent data and
questionnaires were submitted to a group of respondents after one week, the same respondents
were again administered the same questionnaire and it yield the same results.
3.7 Ethical consideration
Authorization was given by accounting department of Amaserano community banking and also
an introductory letter was issued to allow the researcher to go ahead with the researching on the
study topic. “The role of microfinance institutions in poverty alleviation in Rwanda”
2.8. Summary of the chapter
This chapter looked at the plan of the research and how it was conducted. It explains the research
design, the study population, sample size and sampling technique, sources of data, tools for data
collection, how data was analysed, validity and reliability of research instruments and finally the
ethical consideration of the study.

31
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1. Introduction
This chapter presents the research findings. The researcher presents the research findings from
the respondents involved in the study.
The general objective of study was to examine the role of microfinance institutions on poverty
alleviation in Rwanda.
The study responded to the following questions:
1. What is the role of Amaserano community banking in poverty alleviation?
2. What are the challenges Amaserano Community banking facing in delivering credit service to
the citizens?
3. What are the possible solutions to the challenges Amaserano Community banking facing in
delivering credit service to the citizens?
4.2. Bio Data of Respondents.
4.2.1. Marital status of the Respondents
The study was used marital status of the respondents based on the nature of this study, because
the researcher liked to use the respondents in different classes to achieve the study results. The
findings were as shown below.
Table 1: Characteristics of respondents by marital status
Marital status Frequency Percentage %
Single 30 34
Married 41 47
Widow or Widower 16 18
Total 87 100
Source: Field Data 2017

32
By the marital status of the respondents used in this study 34% of the respondents represented
the respondents who are not married means there single, 47% of the respondents in this study
were married and the majority of the respondents in this study were married, while only 18% of
the respondents were used in this study as widow or widower means those wives with no men
and men with no wives.
4.2.2. Educational level of the respondents
The findings from the respondents based on their educational background. Responses are as
presented in the table below.
Table2: Characteristics of the respondents by educational level
Level Frequency Percentage%
Non-formal
education
12 14
primary 30 34
Secondary school 36 41
Bachelor degree 6 7
Masters 3 3
Total 87 100
According to educational level of the respondents 14% were the respondents with non- formal
education, 34% were the respondents who have been completed only Primary school, 41% were
the respondents completed secondary school, 7% of the respondents have bachelor degree in
different domain and the findings showed that the respondents with masters were on 3%.
4.3. Role of Amaserano community banking in poverty alleviation
Table 3: Research Question One, What is the role of Amaserano community banking in
poverty alleviation?
Role Frequency Percentage %

33
Stimulate entrepreneurship 38 44
Create employment 17 20
Labour market interventions 25 29
Increase the domestic interconnectivity 7 8
Total 87 100
Focused to the findings from the field about the role of Amaserano community banking in poverty
alleviation, 44% of the respondents indicated the contribution of Stimulate entrepreneurship,
many of the respondents showed that the citizens especially business makers adopt the loan from
Amasezerano community banking to invest in particular economic activity. This encourages more
entrepreneurs to take loan and making the investment.
20% of the respondents cited the contribution of Create employment. When the entrepreneurs
pick up loans from Amasezerano community banking their give employments to others citizens
and the youth who are not self-employed, the respondents showed that due to the issue of
unemployment arises in the country nowadays the government mobilize the youth to create their
own jobs and this is used as one of the strategies to alleviate poverty in country and in the citizens
particularly.
29% of the respondents said the contribution of Labour market interventions. The respondents
said that the intervention of Amasezerano community banking in loan providence allow the youth
to access on more employment opportunities due to the created enterprise by the loan takers.
8% of the respondents showed the contribution of Increase the domestic interconnectivity. Only
one respondent among the selected sample size to be used said these cooperatives make great
advance in increasing access to public goods and resources in priority sectors of the economy; and
extending the integration of key value chains. The respondent said that Amasezerano community
banking transforms the private sector by increasing investment in significance sectors.
4.4. Challenges Amaserano Community banking facing in delivering credit service to the
citizens

34
Table 4: Research Question Two, What are the challenges Amaserano Community
banking facing in delivering credit service to the citizens?
Challenges Frequency Percentage %
Lack of secrecy 18 21
Insufficient coordination 5 6
Limited resources 31 36
Inefficient management 14 16
Poor infrastructure 19 22
Total 87 100
According to the challenge facing Amasezerano community banking, the findings showed that
there is no challenges of Lack of secrecy happen in Sacco, 21% of the respondents cited that
challenge of insufficient coordination. Some of the respondents showed that Amasezerano
community banking in most of place of the country showed to have poor coordination especially
in terms of security because in many places there were the case of cash robbery and some of the
loan takers who are not returning the credit totally as they have adopted, 6% of the respondents
cited the challenge of insufficient coordination in this microfinance.
36% of the respondents showed that a limited resource is tough challenge facing Amasezerano
community banking. When you compare the materials used by other financial institutions in this
country and what is being used by Amasezerano community banking is quite different, the
respondents said that for Amasezerano community banking to maintain sufficient coordination
needed to have the adequate resources as other financial institutions.
16% cited the challenge of inefficient management. The respondents said that the issue come up
to the business activities of today mostly caused by the poor management activities adopt by those
who are in charge of it, this financial institution face the challenge of poor management from
incompetence labour hired to serve on this post and finally 22% cited the challenge of Poor
infrastructure. This cooperative face this challenges as long they would like to expand their
economic activities but finally found with no enough infrastructure that is become limitation to
these works.

35
4.5. Solutions to the challenges Amaserano Community banking facing in delivering credit
service to the citizens
Table5: Research Question Three, What are the solutions to the challenges Amaserano
Community banking facing in delivering credit service to the citizens?
Solutions Frequency Percentage %
Capacity Building 40 46
Democratic management 9 10
Strengthening effectiveness of
Sacco finance management
15 17
Service motive 23 26
Total 87 100
46% of the respondents cited the solution of capacity building. The respondents showed that if
there is system of developing competence among employees of Amasezerano community banking
there is no inefficient coordination take place because the problems like that occurs from the
incompetency so that to tackle that challenge the organization have to build capacity among its
workers.
10 % cited the solution of Democratic management. With the poor management shown among
this enterprise if they work together with other financial institution to ensure how the perfect
management should do be done in order to increase the organization financial suitability.
17% of the respondents said the solution of strengthening effectiveness of Amasezerano
community banking finance management. The respondents said that this can only be achieved
when the state cooperate with this organizations to provide the trainings to the employees and
only 26% of the respondents mentioned the solution of Service motive to all beneficiaries to see
whether these cooperative could pertain the level of other financial institutions.

36
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1. Introduction
This chapter presents the summary of findings, conclusions and recommendations of the study.
5.2. Summary of the Study
In relation to research objective one about the role of Amaserano community banking in poverty
alleviation, 44% of the respondents indicated the contribution of Stimulate entrepreneurship,
many of the respondents showed that the citizens especially business makers adopt the loan from
Amasezerano community banking to invest in particular economic activity. This encourages
more entrepreneurs to take loan and making the investment, 20% of the respondents cited the
contribution of Create employment, and 29% of the respondents said the contribution of Labour
market interventions. The respondents said that the intervention of Amasezerano community
banking in loan providence allow the youth to access on more employment opportunities due to
the created enterprise by the loan takers, 8% of the respondents showed the contribution of
Increase the domestic interconnectivity. Only one respondent among the selected sample size to
be used said these cooperatives make great advance in increasing access to public goods and
resources in priority sectors of the economy; and extending the integration of key value chains.
The respondent said that Amasezerano community banking transforms the private sector by
increasing investment in significance sectors.
In relation to research objective two about the challenge facing Amasezerano community
banking, the findings showed that there is no challenges of Lack of secrecy happen in Sacco,
21% of the respondents cited that challenge of insufficient coordination. Some of the respondents
showed that Amasezerano community banking in most of place of the country showed to have
poor coordination especially in terms of security because in many places there were the case of
cash robbery and some of the loan takers who are not returning the credit totally as they have
adopted, 6% of the respondents cited the challenge of insufficient coordination in this
microfinance, 36% of the respondents showed that a limited resource is tough challenge facing

37
Amasezerano community banking, 16% cited the challenge of inefficient management. The
respondents said that the issue come up to the business activities of today mostly caused by the
poor management activities adopt by those who are in charge of it, this financial institution face
the challenge of poor management from incompetence labour hired to serve on this post and
finally 22% cited the challenge of Poor infrastructure.
In relation to research objective three about Solutions to the challenges Amaserano Community
banking facing in delivering credit service to the citizens 46% of the respondents cited the
solution of capacity building, 10 % cited the solution of Democratic management. With the poor
management shown among this enterprise if they work together with other financial institution to
ensure how the perfect management should do be done in order to increase the organization
financial suitability, 17% of the respondents said the solution of strengthening effectiveness of
Amasezerano community banking finance management. The respondents said that this can only
be achieved when the state cooperate with this organizations to provide the trainings to the
employees and only 26% of the respondents mentioned the solution of Service motive to all
beneficiaries to see whether these cooperative could pertain the level of other financial
institutions.
5.3. Conclusions
It’s clear that Amaserano Community banking play a vital role in poverty reduction in the
country through its economic importance’s mentioned above like Stimulate entrepreneurship,
Create employment, Labour market interventions, Increase the domestic interconnectivity ,
however there is a couple of challenges facing Amaserano Community banking like insufficient
coordination, limited resource , inefficient management, Poor infrastructure and the solutions to
these challenges were capacity building, Democratic management, strengthening effectiveness of
Sacco finance management, Service motive
5.4. Recommendations
The study recommends that, there should be often trainings of management team that overseen
Amaserano Community banking to increase its performance.

38
The study also recommends that Amaserano Community banking should maintain adequate
resources to be used in its economic activities.
The study also recommends that Amaserano Community banking should increase the number of
loans offered to its beneficiaries to keep up alleviating the poverty in the country.
5.5. Areas for Further Researcher
a) The impact of cooperatives in achieving sustainable development.
(b) Role of microfinance institutions to the economic development.
REFERENCES
Aric. D. (2012). role of microfinance institutions in poverty reduction. Retrieved from NISR
Website: http://www.nisr.gov.rw
Alexis (2009). Microfinance and financial inclusion in Rwanda, Lagos, Retrieved from NISR
Publisher
Axer F,(2011). The evolution of poverty in Rwanda from: Results from the Household Surveys
(EICV). Retrieved from NISR website: Kigali. University of Rwanda publisher
Osborne, H. (2005). "Basic bank accounts ‘fail to help the poorest’", The Guardian, No.24
August, Ronald I .K. (2015) ,Money and Capital in economic development, Washington DC,
Brookings institution publisher.
Saint-Paul Gilles, (2014). “Microfinance in developing countries, financial markets and
economic development “European Economic Review, Elsevier, vol.36 (4)

39
Saunders, M., Lewis, P., and Thornhill, A. (2003) Research Methods for Business Students.
London: FT Prentice Hall publisher
Sekaran, U & Bougie, R. (2010). Microfinance history across the world: A Skill Building
Approach (5th edition). New Jersey: John Wiley and Sons publisher
Solo, T.M. and Monroth, A. (2006). Access to financial services in Colombia: The unbanked in
Bogota. Word Bank Policy Research working paper 3834.
Storey, C.D. and Easingwood,C.J. (2010). Determinants of new product performance: a study in
the financial services. International Journal of service industry management. Vol.7, pp. 32-5
Retreived
Werson A., Gate. B. (2012). Umurenge SACCO program implementation report. 43. Retrieved
from BNR website: www.bnr.rw 44.
Sart.Y. (1998). The evolution of poverty in Rwanda from 2000 to 2011: Results from the
Household Surveys (EICV). Retrieved from NISR website: http://www.nisr.gov.rw 45. National
Institute of Statistic in Rwanda. (2012).
Saunders, M., Lewis, P., and Thorn hill, A. (2003) Research Methods for Business Students.
London: FT Prentice Hall 50. Sekaran, U & Bougie, R. (2010). Research Methods for Business:
A Skill Building Approach (5th edition).
New Jersey,John Wiley and Sons. 51. Solo, T.M. and Monroth, A. (2006). Access to financial
services in africa: The unbanked in Bogota. Word Bank Policy Research working paper 3834.
Storey, C.D. and Easingwood,C.J. (2014). Determinants of new product performance: a study in
the financial services. International Journal of service industry management. Vol.7, pp. 32-55.
Retrieved on 23-03-2012.

40
Hoyt, A. (2000): And Then There Were Seven: Cooperative Principles Updated, at
www.uwcc.com International Co-operative Alliance (2003): Welcome to the International
Cooperative Alliance, at www.coop.org
Laidlaw, A.F (1974): The Cooperative Sector, Columbia: University of Missouri Ahmad Bello
Dogarawa, Department of Accounting, Ahmadu Bello University, Zaria 19 The Role of
Cooperative Societies in Economic Development
Levi, Y. (2005): How Nonprofit and Economy can Co-exist: A Cooperative Perspective, Ireland:
International Cooperative Research Institute
Levin, M. (2002): The Promotion of Cooperatives, ILO Cooperative Branch, at
www.ica.coop/europe/ra2002/speech
RBCDS (1995): What Are Cooperatives? Washington: Cooperative Information Report Schaars,
M.A. (1978): Cooperatives: Principles and Practice, Madison: University of Wisconsin Centre
for Cooperative

42
Appendix I: QUESTIONNAIRES FOR THE RESPONDENTS
Dear sir / madam,
I am a student of University of Tourism Technology and Business Studies (UTB) carrying out a
research on the “The role of microfinance institutions in poverty alleviation in Rwanda” as part
of the requirement for the fulfillment of the award of Bachelor of Business management of UTB.
I therefore humbly request you to spare some of your time and fill in this questionnaire. Please
be assured that all information you give here will be strictly for academic purposes and will be
treated with great confidentiality.
Thank you for your time.
Part A: Demographic characteristics of the respondents
1. Gender
a. Male
b. Female
2. Age
a. Between 18-25
b. Between 26-35
c. Between 36-45
d. Above 46 years
3. Level of education
a. Primary
b. Secondary
c. University
d. Master’s degree and above
PART B: QUESTIONNAIRES THAT WILL BE ADMINISTERED TO THE
EMPLOYEES OF AMASERANO COMMUNITY BANKING.
4. Do you think any microfinance play a part in reduction of poverty in Rwanda?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
……………………………………………………………………………………………………

43
5. What important activities implemented by Amaserano community banking to reduce
poverty?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
…………………………………………………………………………………………………..
6. Mention the outstanding contribution of financial institutions in Rwanda?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
…………………………………………………………………………………………………….
7. Do you think Amaserano community banking faces challenges in reducing poverty?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
……………………………………………………………………………………………………
8. If yes, mention the challenges?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
…………………………………………………………………………………………………
9. In your own opinion what are the most leading challenges as far as poverty is concerned
at Amaserano community banking?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
……………………………………………………………………………………………………..
10. Propose appropriate strategies to overcome such challenges in your institution?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
…………………………………………………………………………………………………….

44
PART C: QUESTIONNAIRES THAT WILL BE ADMINISTERED TO THE
CUSTOMERS OF AMASERANO COMMUNITY BANKING.
11. As Amaserano community banking customers, what form of poverty face you country
Rwanda?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
……………………………………………………………………………………………………
12. How did you understand the role of Amaserano community banking in poverty
reduction?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
.
13. Is there any challenge you face while you are requesting the loan use to escape from
poverty?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
…………………………………………………………………………………………………
14. If yes, list the challenges?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
……………………………………………………………………………………………………
15. What Amaserano community does to address the stated challenges you face?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
…………………………………………………………………………

45
Thank you for your cooperation!!

ADRIEN NZAYISENGA

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