amir report 2013

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Association of Microfinance Institutions in Rwanda

We energise microfinance sector in Rwanda

ANNUAL REPORT2013

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TABLE OF CONTENT

TABLE OF CONTENT 2

ACCRONYMS 3

AMIR BOARD OF DIRECTORS 4

AMIR SENIOR MANAGEMENT 4

AMIR BACKGROUND 5

A WORD FROM THE CHAIRPERSON 6

EXECUTIVE SUMMARY 7

OVERVIEW OF AMIR ACHIEVEMENTS IN THE MICROFINANCE SECTOR IN RWANDA 8

WHAT 2014 HOLDS FOR MICROFINANCE SECTOR 20

LIST OF AMIR MEMBERS AS OF 2013 21

FINANCIAL STATEMENTS 2013 22

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ANNUAL REPORT2013

ACCRONYMS

AMIR Association of Microfinance institutions in Rwanda

SACCO Savings and Credit Cooperative Societies

NGOs Non Government Organisations

MFIs Microfinance Institutions

EDPRS Economic Development and Poverty Reduction Strategy

AFMIN Africa Microfinance Network

EAFMNET East Africa Microfinance Network.

NMPIS National Microfinance Policy implementation Strategy

NFSDP National Financial Education Strategy and Financial Sector Development Program

RCA Rwanda Cooperative Agency

SBFIC Savings Banks Foundation for International Cooperation

MINEDUC Ministry of Education

AFR Access to Finance Rwanda

RIM Reseau Interdiocesain de Microfinance

VSLA Village Savings and Credit Lending Association.

CPP Client Protection Principles

RICEM Rwanda Institute of Cooperatives, Entrepreneurship and Microfinance

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AMIR BOARD OF DIRECTORS

AMIR SENIOR MANAGEMENT

Jean Marie Vianney NZAGAHIMANA Chairperson

MUREBWAYIRE Denise Vice Chairperson

Rita NGARAMBE Executive Secretary

KALISA K. Callixte Secretary

Peter J. RWEMA Programs Director

MUSONI K. Jean Louis Member

Jean NZAKAMWITA DAF

DUSABUMUREMYI Merchias Member

Jean Pierre UWIZEYE | Senior OfficerFinancial Education & capacity Building

Jean Baptiste HATEGEKIMANA| Senior OfficerPerfomance Monitoring and Inclusive Finance

Jean Damascene HAKUZIMANA | Senior OfficerAdvocacy & Communications

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AMIR BACKGROUND

Microfinance is one of the important sub-sectors in achieving vision 2020 goals. It acts as a catalyst contributing towards transforming Rwandan

economy into middle income country. It plays a crucial role in changing the country’s economy from subsistence agricul-ture to knowledge based society through various financial products and services, financial literacy and education programs. As a result there is improved savings which cultivates private investments. Association of Microfinance institutions in Rwanda (AMIR) has been in existence since 2007 and as the only microfinance network, it has wide mandate and important key role in the development of microfinance sector in Rwanda. It represents more than 90% of registered microfinance institutions, with the process to bring on board Imirenge SACCOS although they are being served by AMIR in various capacities. AMIR looks forward to recruit them as members in 2014. Now, AMIR as a professional umbrella organization consists of 62 members, among them 3 microfinance banks, MFIs limited by shares, cooperatives and Saccos, and 1 NGO supporting various microfinance initiatives. This means that AMIR membership extends to Microfinance banks and NGOs that are promoting village savings Banks. Currently Urwego Opportunity Bank, Unguka Bank, Agaseke Bank are members of AMIR while Care international is an associate member. Rwanda Microfinance sector is developing fast mainly due to the Government support in creating enabling environ-ment for MFIs to operate their business.At macro level, there is national economic development and poverty reduction strategy (EDPRS 2), National Microfinance policy Implementation Strategy, national microfinance law and regulation. Rwanda is among the East African countries with the best microfinance environment because it has microfinance law catering for both microfinance limited companies and Sacco’s. There is well functioning Credit Bureau that caters for both microfinance and Banks. In keeping the Rwandan microfinance sector vigilant, AMIR connects the sector to rest of others in Africa through enrolling and effectively participating in the activities of Africa Microfinance Network (AFMIN). AMIR is spearheading the East Africa Microfinance harmonization and currently it holds the presidency of East Africa Microfinance Network-EAFMNET.AMIR is also a member of SEEP network, one of the prominent professional organizations of MFIs across the globe.

VisionTo become a strong and efficient organization that contributes to the development of the microfinance industry through the promotion of transparent management systems in MFIs, innovative and market led financial services and

products.

MissionThe mission of AMIR is to offer diversified services to microfinance institutions and the sector at large to enable them to work profes-sionally and contribute to poverty reduction in a

sustainable manner.

Core values

ProfessionalismTransparency

UnityIntegrity.

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A WORD FROM THE CHAIRPERSON

2013 marks the sixth anniversary of AMIR. We always remember the time when 32 MFIs came together to start this association, it was a humble beginning and after 6 years AMIR’s work is built on a solid foundation that was laid by its members with a mission of becoming a strong and efficient organization that offers diversified services to MFIs and to the sector at large that enable them to work professionally and contribute efficiently to poverty reduction in a sustain-able manner.In 2013, AMIR developed a new 5-year strategic plan to meet the new needs of members, approved by members through their General Assembly of August 2013, the new strategic plan will maintain AMIR’ classic areas of focus in Advocacy and information sharing, research and development and the area of Capacity building will slightly bend into performance monitoring.

AMIR takes into consideration government programs and has shown its commit-ment to accomplish its part as given by the government especially in EDPRS 2, National Microfinance Policy implementation Strategy-NMPIS, National Financial Education Strategy and Financial Sector Development Program –FSDPII.

I am glad to note, on behalf of Association of Microfinance Institutions in Rwanda (AMIR), that in last six years, we have lived up to our mission of building an efficient and strong organization and I am honored to present to you AMIR’s 2013 annual report, which I trust that it clearly captures main activities and achievements of the organization in 2013 as well as its 2014 areas of focus.

Let me take this opportunity to sincerely congratulate AMIR members, my fellow Board of Directors, Supervisory committee, Conciliation committee and the Secretariat of the association for their steady commitment to serve the microfi-nance industry which has brought us this far.

It’s again my sincere hope that we will work with everyone in 2014 to achieve more results as we enter the second year of our new strategic plan 2013-2018.We are very grateful to all our partners and friends in and out of Rwanda for their constant support and encouragement.I thank you all for your continued support.

NZAGAHIMANA Jean Marie Vianney Chairman, AMIR

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EXECUTIVE SUMMARY

AMIR is the only professional microfinance association in Rwanda with currently 62 members. It is guided by the vision of becoming a strong and efficient organization that contributes to the development of the microfinance industry through the promotion of transparent management systems in MFIs, innovative and market-led financial

services and products. Therefore to fulfill this vision, AMIR has the mission of offering diversified services to the micro finance institutions and the sector at large that enable them to work professionally and contribute to poverty reduction in a sustainable manner. The sector has registered a modest growth in 2013 where the Microfinance sector assets registered an increase of 28.7% from June 2012 to June 2013, rising from FRW 94.8 billion to FRW 122.1 billion. The increase was mainly driven by the liquid assets and gross loans which increased by 23.6% and 24.3%, moving from FRW 38.5 billion to FRW 47.6 billion and from FRW 51.4 billion to FRW 63.9 billion, respectively.

AMIR supported the Microfinance industry with a variety of interventions:

Advocacy and networking activities centered on creating an enabling environment that is favorable for microfinance activities. AMIR represented the Rwandan microfinance sector nationally and internationally in several conferences and stakeholder meetings as well as through its membership in international networks. Furthermore AMIR supported its members through exchange of experiences. During this operational year, AMIR was instrumental in advocating for concerted efforts to assist MFIs/SACCOs in review of leasing law and arrears recovery.AMIR has contributed much in monitoring the performance of Microfinance Institutions with a continued capacity building programs where gaps have been identified as well as where needs highly arise. In research and development, AMIR has in 2013, conducted various research papers on promoting social performance and financial education within the industry, introducing agri-lending mechanism to MFIs and access to finance by middle range companies, Scaling up micro-leasing as a product to MFIs. AMIR has maintained media presence through newspaper articles, television interviews and press kits.

In 2013, AMIR developed a new 5-year strategic plan to meet the new needs of members, approved by members through their General Assembly of August 2013, the new strategic plan will maintain AMIR’ classic areas of focus in Advocacy and information sharing, research and development and the area of Capacity building will slightly bend into performance monitoring.AMIR takes into consideration government programs and has shown its commitment to accomplish its part as given by the government especially in EDPRS 2, National Microfinance Policy implementation Strategy-NMPIS, National Financial Education Strategy and Financial Sector Development Program –FSDPII.

AMIR’s Governance, Management And Partners In 2013

AMIR consists of 3 organs; The General Assembly which is the highest organ of the association. All the powers of the association are vested in the general assembly and according to newly approved constitution, once in 3 years, the General Assembly elects a Board of Directors, which is the second organ, headed by the chairman, to provide policy guidance and drive the strategic direction of association. General Assembly also elects supervisory and conciliation committees that are made up of 3 members each for a mandate of 3 years. The secretariat is in charge of daily management of the association and is headed by the Executive Secretary. It is also organized in the departments: Advocacy and Communication, performance monitoring and capacity building, research and development, and finance and administration.In 2013, AMIR worked with a dynamic group of partners including Ministry of Finance and Economic Planning, Central Bank, Ministry of Education, Ministry of Trade and Industry, Rwanda Cooperative Agency, SEEP Network, TERRAFINA Microfi-nance, Trocaire, CGAP, Private Sector federation, Rwanda Development Board, Savings Banks Foundation for International Cooperation (SBFIC), Rabo Bank, Innovation for education project through MINEDUC/DFID project, OXFAM and Access to Finance Rwanda.

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The Rwandan microfinance sector is young and very dynamic. The market for microfinance services and products develops quickly due to increased income levels of the poor, enhanced levels of financial literacy of the population, new ICT technol-ogies becoming available and regional open borders permitting foreign operators to enter Rwandan financial market.Microfinance sector growth is associated with the Government efforts in creating an enabling environment for the microfinance sector to work towards providing the financial services needed by people at grass root level. This is through developing several strategic documents to provide direction and policy orientation to ensure financial inclusion is achieved as planned. There is Financial Sector Development Program II that stresses importance of microfinance in financial inclusion, EDPRS2, The National Microfinance Policy Implementation Strategy, Umurenge SACCOS Strategy and National Financial Education Strategy.

OVERVIEW OF AMIR ACHIEVEMENTS IN THE MICROFINANCE SECTOR IN RWANDA

Comprised of 490 institutions of which 12 limited companies and 478 SACCOs including 416 UMURENGE SACCOs, the Microfinance sub-sector assets registered an increase of 28.7% from

MFIs Performance Indicators (UMURENGE SACCOs included, FRW in billion unless otherwise stated) Performance indicators in value

Denomination Jun-12 Dec-12 Jun-13 Var Jun-12 To Jun-13 (%)

Total Assets 94.8 101.0 122.1 8.7

Cash & Cash equivalent 38.5 31.5 47.6 23.6

Loan Portfolio (Net of Provisions) 39.1 56.5 60.9 55.7

Gross Loans 51.4 59.2 63.9 24.3

Non-Performing Loans 4.3 5.1 5.7 32.2

Provisions 2.4 2.7 3.2 33.1

Total Deposits 56.6 54.5 68.9 21.9

Current Accounts 45.3 40.4 53.3 17.5

Net Equity 24.5 30.1 38.5 57.1

Soundness indicators (%)

NPL (Max 5%) 8.4 8.5 8.9

Liquidity (Min 30%) 84.6 81.9 89.3

CAR (Min 15%) 25.8 29.8 31.5

As illustrated above, the microfinance sub-sector continues to grow while remaining liquid and well capitalized. The capital adequacy (CAR), the liquidity and the non-performing loans stood at 31.5%; 89.3% and 8.9% in 2013 against 25.8%; 84.6% and 8.4% in 2012 respectively. Concerning UMURENGE SACCOS as a block, the entity recorded a growth of 22.4% in deposits, reaching FRW 37.0 billion in June 2013 from FRW 30.3 billion in June 2012. As result, total assets increased from FRW 40.9 billion to FRW 54.7 billion (33.9%) and granted loans reached FRW 16.4 billion from FRW 10.0 billion in June 2012. Relating to the quality of credit portfolio, NPLs have recorded an increase of 6.1% in June 2013 from 2.6% in June 2012 due mainly to the increase of granted loans by new licensed SACCOs. With regards to liquidity, its ratio in June 2013 was 82.6% from 92.8% in June 2012 while the capital adequacy improved from 20.0% to 27.0%.

June 2012 to June 2013, rising from FRW 94.8 billion to FRW 122.1 billion. The increase was mainly driven by the liquid assets and gross loans which increased by 23.6% and 24.3%, moving

from FRW 38.5 billion to FRW 47.6 billion and from FRW 51.4 billion to FRW 63.9 billion, respectively.

MICROFINANCE SECTOR PERFORMANCE AS OF JUNE 2013 (Source BNR Annual Report)

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OUTREACH INDICATORS

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ACHIEVEMENTS OF AMIR IN 2013

2013 was the year where AMIR members have adopted a new 5-year strategic plan and a business plan. To implement the activities underlined in this strategic plan each year, there was the development of the annual operational plans that consisted of action plans with a clear focus in Performance Monitoring and Capacity Building, Research and Development and, Advocacy and Communication. The annual plan was prepared with an integration of the recommendations from stakeholders and members meetings to improve AMIR’s performance in general. AMIR sustainability was also emphasized in this year which as result the creation of AMIR economic arm to operate on the name of AMIR Consult Ltd.

Frank Bakx of RABOBANK explaining to MFIs Managers the cost

profit analysis study, a basis to Agri-lending

A. RESEARCH AND DEVELOPMENT

A. 1 Product development and marketing of MFIs products and services

• In the bid of supporting MFIs to market their products, AMIR has supported the development of 5 Strategic Marketing plans for selected microfinance institutions. Those institutions are : The participating MFIs are: UMUTAN-GUHA FINANCE LTD, UMWALIMU SACCO, COOPEC TWIZIGAMIRE, RIM LTD and DUTERIMBERE LTD.

• AMIR has inititated agricultural financing product, where in 2013, a hand book that details the cost of production for at least 10 crops was published with a trainig of 5 MFIs in agriculture lending techniques promotion. The training is continuous to next year. Participating MFIs are COOPEC ITI, CLECAM WISIGARA, RIM LTD, UMWALIMU SACCO and SAGER GANZA

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• The product of Microleasing has been taken to MFIs in 2013 : 4 MFIs went through the process of micro leasing products and more 3 were brought on board but due to constraints related to the law and lack of funds, the project is on hold.

• In fostering access to finance, AMIR has supported the developemnt of 26 business plans for middle range clients and linked them to 6 MFIs. This model will be duplicated to other MFIs in 2014. MFIs involved are: RIM LTD, VISION FINANCE COMPANY LTD, GOSHEN FINANCE LTD, UNGUKA BANK LTD and CAF ISONGA LTD

A. 2 Research and Development

• Wanting to design structured programs and services to members, AMIR has conducted the national microfinance market research on both supply and demand side. A sample of 5 MFIs was used considering that 5 are bigger players and have branches country wide. They are Umwalimu SACCO, RIM Ltd, Umutanguha Finance Ltd, Duterimbere Ltd and Twizigamire SACCO

• A regional workshop on data mining and analysis in collaboration with MIX was organised where 3 countries attended. Under this activity, 25 financial and social performance data from microfinance institutions were sent and published on mix market website.

Trainees from three countries being coached

on Data sending and extracting at MixMarket Website by Miss Audrey

from Mix Market

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• Through the joint project AMIR-CARE VSLA scaling project, AMIR monitored 3 MFIs through referesher trainings and intesive follow up.

A. 3 Responsible finance (Social performance and financial education)

Children started saving at COOPEC INKUNGA in Karongi District, after getting the basics of child social and financial education courses at their schools from their trained teachers. Photo: Philos

• AMIR progressed much in 2013, for its Financial education and social performance arm : AMIR has continued implementing its financial litteracy program across the country by introducing a new innovative project of linking 5 MFIS with schools around them. In this project more than 2000 children opened savings accounts with MFIs/SACCOs. In the same year AMIR trained 370 teachers in child social and financial education curricurum.

MFIs managers following the CPP training organised by AMIR and OikoCredit

• In promoting CPPs, AMIR wrote a position paper that details how a system can be put in place to ensure application of CCPs and was forwarded to the Ministry of Finance. A national workshop on CPPs was organized in collabo-ration with Oiko credit and attended by 66 MFIs’ representatives and facili-tated by international expert Mrs. Leah Wardle

• AMIR has trained MFIs on Client Protection Principles and Progress out of Poverty Index. In 2013, AMIR has trained 3 MFIs and they have started using PPI in their operations. The tool serves to track progress out of poverty for members of institutions.

• AMIR has produced a refinancing criteria handbook.The booklet was shared with members and it will be published in 2014.Now in place, it will allow AMIR members to know where and how to find refinancing agencies.

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A.4 Partnership management, institutional development and representation

• AMIR Participated in the establishment of Rwanda Institute of Cooperatives, Entrepreneurship and Microfinance (RICEM) and now AMIR holds the vice chairmanship of the steering committee of this institute. RICEM’s Business plan and project document are in place. The Institute was accomodated by the government of Rwanda at Centre Iwacu Kabusunzu and starting date was fixed as March 2014.

Group photo of stakeholders after asssessing facilities in place at RICEM Premisses before the center starts offering studies.

Rwanda institute of Cooperatives, Entrepreneurship and Microfinance (RICEM) is a joint innitiative aiming at becoming a national reference point of innovation and growth through providing quality training and consultancy services in areas of business management and to foster the Rwanda human capital to become a competitive dynamic workforce.

It is a joint initiative of the following partners:

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The 2013 year was seen as a transition for AMIR’s classic trainings to members’ needs tailored trainings. AMIR also is orienting capacity building programs in performance monitoring framework and mainly classic trainings are going to

be given through the Rwanda Institute for Cooperatives, Entrepreneurship and Microfinance-RICEM.

Capacity building and performance monitoring programs conducted in 2013.

Programs Institutions and numbers of beneficiaries

Training according to members needsOrganize and conduct 31 UMWALIMU SAC-CO Loan officers, 82 RIM Loan officers, 50 Duterimbere Loan officers and 35 cashiers on Customer relationship Management

Continuous Coaching support in using management tools and facilitating small MFIs to produce BNR report

Supported are COOPEC Impamba, Ishema Mulindi, CSPKI, COODEMARU and Clecam NDIZA

Providing coaching support to UMURENGE SACCOS 45 staffs of UMURENGE SACCO were trained.

Certification in Financial education (CGAP Model) 10 certified trainers of trainers and 13 certi-fied trainers of clients

Contribution to MFIs computerizationIn 2013 AMIR has supported the computeriza-tion of one Microfinance Institution namely CPF Ineza

Linkage with refinancing agencies CPF Ineza and CT Murambi, COOPEC Impamba were linked to Rabobank and Social MGF

CAPACITY BUILDING PERFORMANCE MONITORING

“With AMIR support in computerisation, We can get accurate financial statements and from there we can easily control risk”, says Uwamaliya Chantal, CPF ineza Manager.

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• During this operational year, AMIR was instrumental in advocating for concerted efforts in calling to review the leasing law, Second AMIR continued its influence in supporting MFIs/SACCOs in arrears recovery. By the leasing law, 2013 left a new leasing model under discussions but with a relief from microfinance

• AMIR has played much in the establishment of Rwanda Institute for Cooper-atives Entrepreneurship and Microfinance-RICEM to tackle the skills gap observed in the sector. AMIR continued to strengthen external relations as a way of grabbing global motion and strengthening its capacity of represen-tation of MFIs in Rwanda.

• On its 6th years of existence, AMIR has for the first time been in media for more than 60 times because of establishing a fully-fledged advocacy and communication department.

ADVOCACY, REPRESENTATION AND INFORMATION SHARING

Advocacy and networking activities centered on creating an enabling environment that is favorable for microfinance activities, they included working with various partners like government agencies and development partners on activities like loans recovery process, discussing microfinance laws and holding various meetings where issues

affecting MFIs/SACCOs are discussed.

• The second edition of Rwanda Microfinance Magazine was published and distributed national and international wide. It comprises a range of microf-inance success stories in Rwanda and views of practitioners on the sector.

• AMIR has incessantly informed its various stakeholders through weekly flash news, 7 monthly e-newsletters, social media feeds and an updated website.

Snapshot of an article from the only daily newspaper in Rwanda

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Members following the general assembly at LaPalisse Hotel Nyandungu.

• General Assembly was successfully organized, revision of the constitution, and a new 5-year Strategic plan and Procedures Manual were developed.

• AMIR continued to advocate for a refinancing mechanism of SACCOS and MFIs from SMGF, Rabo bank and Oiko Credit and other social investors.

• AMIR fostered membership in representing the sector by attending, contrib-uting in membership activities of the following networks where it is an active member : MAIN, AFMIN, EAMFNET and the SEEP Network.

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The NMPIS outlines five Strategic Drivers to

achieve Financial Inclusion:

Conceived as a Roadmap to Financial Inclusion, the NMPIS emphasizes the client perspective and reflects the main orientation of the Strategy: that of bringing adequate financial services to the whole population, building upon what has been achieved in the past years. The government is considering increased access to financial services in terms of

financial inclusion, whereby financial inclusion is defined as universalAccess to a broad range of financial services, at a reasonable cost, provided by a diversity of well managed and sustainable institutions.

The purpose of formulating the NMPIS 2013 - 2017 is to define and align the vision about the development of the microf-inance sector, to clearly formulate the objectives and to indicate approaches and sub strategies to achieve them. In order to ensure the buy in of all stakeholders care has been taken to involve them in all the phases of the process, from the evaluation of the former Strategy to the formulation of and commitment to the revised Strategy.

TAPPING INTO NATIONAL MICROFINANCE IMPLEMENTATION STRATEGY 2013-2017

Macro level:Improving the legal and regulatory framework

Meso level:Strengthening of microfi-nance support structures

Micro level: supply side

Strong and sustainable providers offering financial services clients need

Access to funding for Microfinance Institutions for improved outreach

demand sideResponsible finance, consumer

protection and financial education

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1. Increasingly efficient and adequately governed MFIs ensure a steady growth in financial inclusion & Client oriented product development and diversificationBy supporting agri-lending and micro leasing AMIR has contributed in diversifying products that MFIs offer thus to met the needs and protection of clients. Marketing strategies developped to MFIs have contributed in products refine-ment, development and diversification for target new segments which contributes to areas of product development and inclusive finance in NMPIS.AMIR also has played much in 2013 in the professionalisation of the microfinance sector by advising MFIs to report their data regulary to the central bank and to Mixmarket. This has helped in increasing transparence and the visibility of Rwanda microfinance sector world wide.

2. Consolidation of the Umurenge SACCO network & Introduction of information and communication technology at all levels

AMIR is member of the government working group of consolidating the Umurenge SACCO network, to this end AMIR has contributed in different discussions aiming at the consolidation of Umurenge SACCO as well as the establishment of Rwanda Cooperative Bank. AMIR has gone far by providing them with harmonised management tools and trains their 45 staffs on the use of them.

3. Promotion of informal inclusion mechanisms and initiatives & Bring Social Performance Management into the mainstream of Rwandese microfinance

AMIR has enormously contributed in Financial education by introducing more than four projects to equip Rwandans with financial letteracy. In 2013, for its Financial education : 5 schools and MFIs were selected and more than 2000 children opened savings accounts with MFIs/SACCOs. AMIR trained 370 teachers in child social and financial education curricurum : This is also a contribution to youth inclusion in financial services. By Informal inclusion promotion, AMIR has partned with CARE International to scaling up VSLA projects within 3 microfinance institutions in 2013. The monitoring report has shown a good working relation between VSLAs and Microfinance Institutions especially in increasing the VSLA lending capital.

AMIR HAS CONTRIBUTED MAINLY IN THE FOLLOWING LINE OF ACTIONS OF NMPIS:

Financial literacy among adults

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Low capacity to professionally and sustainably manage MFIs

In the year 2013, several institutions have deployed great efforts to offer training and capacity building for

the microfinance sector notably AMIR, RCA, Terrafina, and BDF. Irrespec-tive of these efforts the challenge is still prevailing partly because of the growth of the microfinance sector there continues to be a large gap between the supply of individuals with technical financial training and the needs of the MFIs and SACCOs. These institutions have an unmet need for cashiers, clerks and loan officers with basic financial training. At the same time there is also insufficient profes-sionally trained management and lack of capacity at the governance level. Rapid growth in the SACCO sector has created a great demand for trained

IN SOLVING CHALLENGES FACING MICROFINANCE INDUSTRY IN RWANDA

There is little evidence of innovation and diversification of products since the sector was revived five years ago. MFIs tend to copy each other’s’ products and services. In particular, the

sector lacks marketing innovations and skills. More demand driven products need to be developed, and MFIs should adopt a more client oriented approach. The lack of effort to develop demand-led savings and credit products that meet specific targeted clients, results in lack of differentiation between competitors, whereas strong diverse product range would enhance organizational image and branding. AMIR has done a lot in product development and financial inclusion in areas of leasing, agri-lending products like “warrantage” and savings products for young people but a challenge in this area remains which calls for MFIs to change the way of working and become innovativeLimited use of management information systems and use of tools of information technology Transparency especially on reporting systems has improved in 2013 where apart from reporting regularly to central bank, 25 MFIs have also reported to Mix Market and all 416 Imirenge SACCOs are using harmonized management tools. However, seeing the whole sector using management information system is and will remain preference to AMIR.

individuals to serve as officers and managers, especially in the rural Umurenge SACCOs. This is clearly a case of ¨work in progress .̈ The efforts to establish an institute of Microfi-nance, entrepreneurship and Cooper-atives RICEM is expected to have long lasting solution to this challenge.

Minister of Trade and industry Francois Kanimba showing a handover file of former Centre IWACU Kabusunzu to RICEM, a vocational institute to champion cooperatives, entrepreneurship and Microfinance in Rwanda.

Lack of capacity to support MFI product development, diversification and outreach services

Insufficient MFI refinancing mechanisms

Rwanda’s rate of saving is very low, and the propensity to save was further damaged by the closure of 9 MFIs in 2006. Access to commer-

cial funding was minimal as commercial banks were reluctant to offer wholesale finance to MFIs. Banks reported that they would need to see 100% collat-eral and an adequate business plan in order to offer lines of credit to MFIs. The access to external funding was also very limited and in 2007 hardly any social investor or Microfi-nance Investment Vehicle (MIV) was funding MFIs in Rwanda. SMGF and BDF are the reliable refinancing facili-ties available but for the former is very limited according to its small capital and the latter is very limited due to certain conditions that MFIs are failing to comply. Other refinancing agencies are RABOBANK Foundation and OIKO CREDIT. With the newly developed refinancing booklet, AMIR will make sure that every member accessed informa-tion on refinancing mechanism.

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The new plan will mainly put an emphasis on effective services to the microfinance sector in Rwanda. It will mainly cover the areas of advocacy and information sharing, research and development and performance monitoring and capacity building. Much of the emphasis will be put on the establishment of Rwanda Institute for cooperatives, entrepreneurship and microf-inance-RICEM. This institute will take over the arm of classic capacity building of AMIR to better provide training on vocational scheme. AMIR will continue implementing its financial education project with emphasis on research, monitoring and evaluation as agreed with MINEDUC/Innovation for Education project when this concept was chosen among 26 innovations for education in 2012 to be explored.AMIR will continue the progress made in areas of transparency, Client protection principles, social performance manage-ment among others deemed to be important as MFIs have reached a certain level of maturity and solidness. The year 2014 will be crucial especially in enforcing the implementation of AMIR member’s code of conduct. The Business Plan will focus much on financial sustainability of the organization by making operational the AMIR Consult Ltd.AMIR has been, and will remain to be very alert on issues that may negatively affect the performance and image of its members. It will assist its members in product development, especially in agriculture financing and micro leasing. Advocacy, communication and networking especially lobbying government authorities to deploy more efforts in reducing non-performing loans and non-repayment culture among the population will continue to be at the forefront of all AMIR’s interventions. In general 2014 will focus on delivering of demand driven products and services to its members, AMIR sustainability and transparency in the microfinance sector.

“ In general 2014 will focus on delivering of demand driven products

and services to its members, AMIR sustainability and transparency

in the microfinance sector.”

WHAT 2014 HOLDS FOR MICROFINANCE SECTOR

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N.o INSTITUTION

Microfinance banks

1 AGASEKE Bank Ltd

2 UNGUKA Bank Ltd

3 URWEGO OPPORTUNITY BANK Ltd

Limited companies

4 DUTERIMBERE IMF Ltd

5 AL HALAAL Ltd

6 AMASEZERANO CB Ltd

7 CAF-ISONGA Ltd

8 VISION FINANCE COMPANY Ltd

9 GOSHEN FINANCE Ltd

10 INKINGI MICRO FINANCE Ltd

11 RIM Ltd

12 SWOFT Ltd

13 LETSHEGO Ltd

14 COOPEDU Ltd

15 UMUTANGUHA Finance Ltd

SACCOS

16 COOPEC ABADAHIGWA

17 COOPEC COMICOKA

18 COPECYA

19 COOPEC UBAKA

20 C.S.P.KI

21 COOPEC INKUNGA

22 COOPEC ITI

23 COOPEC KOZIBI

24 COOPEC INGASHYA

25 ZIGAMA CSS

26 COOJAD

27 INZIRA VILLE BUTARE

28 INZIRA VILLE KIBUNGO

29 INZIRA SAVE

30 ISHEMA MULINDI

31 COOPEC ZAMUKA

32 COOPEC CODEMARU

33 COOPEC DUKORERURWANDA

34 COOPEC TWIZIGAMIRE

35 COOPEC TWITEZIMBERE

36 COOPEC IMPAMBA

37COOPERATIVE DE SOLIDALITE DES THEICUL-

TEURS CYOHOHA-RUKERI

38 UMWALIMU SACCO

39 UNION DES CLECAMS WISIGARA

40 UNION CMF-UMULIMO

41 CEA Musanze

42 UNION DES CLECAMS EJOHEZA

43 UNION DES CEA

44 CT RUSIZI

45 CT NYAMAGABE

46 CT MURAMBI

47 CT KACYIRU

48 CT MUHANGA

49 CT MUGAMBAZI

50 CLECAM GASEKE

51 CLECAM KAYOVE

52 CLECAM IBAKWE

53 CLECAM ZAMUKA

54 CLECAM BIRUYI

55 CLECAM GISENYI

56 CLECAM NYAMYUMBA

57 CLECAM NYARUTOVU

58 COOPEC TRACO

59 CPF Ineza

60 COOPEC Urukundo

61 CEA Gisenyi

62CARE International (NGO supporting Microfi-

nance activities)

LIST OF AMIR MEMBERS AS OF 2013

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ANNUAL REPORT2013

MissionThe mission of AMIR is to offer diversified services to microfinance institutions and the sector at large to

enable them to work professionally and contribute to poverty reduction in a sustainable manner.

amir report 2013

Documents

rwanda amir

list of amir members

rwanda sacco savings

overview of amir achievements

rwandaannual report2013we

education programs

financial literacy

financial statements