Rwanda: SACCOs to be merged into a co-operative bank

Aug 23, 2016

Plans to establish the banks are near completion, said a minister.

Plans to establish a co-operative bank merging all SACCOs are near completion, the Rwandan minister of trade and industry François Kanimba has announced.

The new financial institution will work as a commercial bank, with SACCOs having over 50 percent shares in the bank.

"The special collaboration between the bank and the SACCOs is that members will withdraw and deposit their money anywhere across the country. They will not be limited to where their SACCOs operate as is the case now," Mr Kanimba said, quoted by Rwanda Focus.

The minister added that one of the objectives of forming the co-operative bank is to ensure that Rwandans who access financial services through Umurenge SACCOs can be served as those with bank accounts.

It will also facilitate the central bank's supervision of the 416 SACCOs across the country.

Umurenge SACCOs were established in 2008 with the aim to boost up rural savings and provide Rwandans with loans to improve their earnings and enhance their livelihoods.

More than 90 per cent of Rwandans now live within a five kilometre radius of the nearest Umurenge SACCO.ADNFCR-2976-ID-801824002-ADNFCR