Rwanda: Credit to the private sector up 26.6 per cent
The Rwandan economy grew by seven per cent in the second quarter of 2015.Outstanding credit to the private sector in Rwanda grew by 26.6 per cent year-on-year in August this year compared to a 15.5 per cent year-on year increased recorded in August 2014, according to figures from the Central Bank of Rwanda. New credit to the private sector increased by 9.2 per cent year-on-year.
Governor John Rwangobwa told Rwanda Focus that the central bank's accommodative policy, implemented a year ago, has had a positive impact on economic growth, while inflation remains low.
"The Rwandan economy grew by seven per cent in quarter two of 2015 compared to 6.1 per cent in the same quarter last year," he said.
The central bank received the Alliance for Financial Inclusion (AFI) Policy Award in 2014 for its work promoting financial inclusion in the country. Its policies were hailed as "innovative and impactful".
John Rwangombwa tweeted after receiving the award that the accolade was in "recognition of Rwanda's visionary leadership", to which he attributed the success of the Umurenge Savings and Credit Cooperatives (Saccos) programme".
Umurenge Sacco was established in 2008 with the aim to boost up rural savings and provide Rwandans with loans to improve their earnings and enhance their livelihoods.
A total of 139 cooperatives under Umurenge Sacco have been awarded licences by the central bank to operate.
These facilities have in just three years attracted over 1.6 million customers and serve, along with other microfinance institutions, almost the same number of customers as those of commercial banks, according to figures from the AFI.
Today, more than 90 per cent of Rwandans live within a five kilometre radius of the nearest Umurenge Sacco.