Microfinance Institutions Urge Rwandans to Embrace Saving Despite Limited Means

As the latest Finscope report reveals a decline in the number of people saving through microfinance institutions, leaders of the umbrella body representing these institutions are urging Rwandans to rethink their attitudes toward saving, emphasizing that saving is not about the size of one’s income but about building a sustainable culture that secures the future.

The leadership of Rwanda’s association of micro and small financial institutions has reiterated that saving is a cornerstone of financial stability and long-term development, while expressing concern over data showing a steady decline in saving habits across the country.

This appeal follows the publication of the Finscope 2024 report, which indicates that fewer citizens are saving through microfinance institutions compared to previous years. According to the association, this trend threatens efforts aimed at financial inclusion and household economic resilience if it is not urgently addressed.

Across different regions of the country, residents interviewed by Top Africa News acknowledged the importance of saving but said that daily living costs continue to limit their ability to put money aside.

Mukamana Claudine, a resident of Gisagara District, explained that her modest income is largely consumed by household needs, leaving little or nothing to save.“When most of what you earn goes toward food and basic necessities, saving becomes extremely difficult. Still, we know that saving is important, and we hope to find ways to save even small amounts,” she said.

Likewise, Nsengimana Emmanuel, a small-scale trader operating in Huye town, pointed out that many people continue to associate saving with wealth, a perception he believes needs to change. “There is a widespread belief that saving is only for people who earn a lot. But even small daily earnings can add up over time, especially when saved through institutions that provide guidance and financial discipline,” Nsengimana noted.

Speaking on the matter, the Chairperson of the Association of Microfinance Institutions, Jackson Kwikiriza, stressed that the challenge facing Rwanda’s saving culture is rooted more in mindset than in income levels.

Kwikiriza explained that many people underestimate the power of small, consistent savings, yet experience shows that gradual saving plays a critical role in helping families cope with emergencies, invest in income-generating activities, and reduce dependence on debt. “Saving should not be viewed as something reserved for those with large incomes. It is a habit and a discipline. Even the smallest amount saved regularly can create a financial safety net over time,” Kwikiriza said.

He further emphasized that microfinance institutions were specifically designed to accommodate low-income earners, offering flexible saving products tailored to their realities. According to him, these institutions encourage people to start with whatever amount they can afford and grow their savings progressively.

Kwikiriza added that saving through formal financial institutions provides security and accountability that informal methods often lack.“When people save in regulated microfinance institutions, their money is safe, traceable, and can be used as a foundation to access credit in the future. Saving opens doors it allows individuals to qualify for loans, invest in small businesses, pay school fees, or respond to emergencies without selling assets,” he explained.

He also highlighted the broader economic impact of saving, noting that when citizens save, financial institutions are better positioned to lend to productive sectors, thereby contributing to national development. “A strong saving culture strengthens not only households but the entire economy. The more people save, the more capital becomes available for investment, job creation, and sustainable growth,” Kwikiriza added.

The microfinance sector leader called on government institutions, local authorities, civil society organizations, and the media to intensify public awareness campaigns that promote financial literacy, especially at the grassroots level.

According to Kwikiriza, educating citizens about budgeting, goal-oriented saving, and responsible borrowing is essential to reversing the current decline in saving.

Financial experts echo this view, noting that saving empowers families to withstand unexpected shocks, plan for the future, and invest in small-scale projects that generate income and improve living standards.

The association of microfinance institutions continues to advocate for stronger partnerships and community-based initiatives aimed at embedding saving as a lifelong habit among Rwandans.

The Finscope 2024 report shows that only 5 percent of the population currently saves through micro and small financial institutions. In addition, just 3 percent of citizens have accessed loans from these institutions.

The report further indicates that the share of people holding accounts in microfinance institutions stands at 8 percent in 2024, compared to 9 percent recorded before 2020. These figures underline the need for renewed efforts to strengthen financial inclusion and foster a sustainable saving culture across the country.