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UNIVERSITY OF LAY ADVENTISTS OF KIGALI
(UNILAK)
FACULTY OF ECONOMIC SCIENCES AND MANAGEMENT
DEPARTMENT OF FINANCE
Dissertation Submitted to the Faculty of Economic Sciences
and Management in partial fulfillment of the requirements for
the award of Bachelor’s Degree in Business Administration,
Finance.
Submitted by:
MUKAMANA Evarithe
Reg. no: Kgl 05814/2012
Supervisor: Mr. HABYARIMANA Valens
Kigali, July 2016
THE ROLE OF UMURENGE SACCO LOANS IN SOCIO-
ECONOMIC DEVELOPMENT OF CLIENTS.CASE STUDY:
RUSORORO UMURENGE SACCO
Period: 2012 - 2015
i
DECLARATION
I declare that this work titled “the role of Umurenge SACCO loans in socio-economic development of
clients, case study of Rusororo Umurenge SACCO” is my own work, that it has not been submitted for
any degree or examination in any other higher learning institution, and that all the sources I have used
or quoted have been indicated and acknowledged by complete references.
Full name MUKAMANA Evarithe
Date 31/07/2016
Signature ……………………………………..
ii
CERTIFICATION
This is to certify that this work titled “the role of Umurenge SACCO loans in socio-economic
development of clients case study Rusororo Umurenge SACCO” is a study carried out by
MUKAMANA Evarithe under my guidance and supervision.
Supervisor……………………………………Date………………………………
Signature………………………………….
iii
DEDICATION
This work is dedicated
To My husband
To my parents
To my brothers and sister
To my friends
.
iv
ACKNOWLEDGMENT
It is a pleasure for the researchers to express our thanks to the Almighty God who provided everything
to enable the researchers to complete this project report.
We thank all staff of for the guidance and teaching throughout our studies, especially the academic
body of faculty of economics Sciences and Management, Department of Finance for providing a
program that allows student to carry out the research project in final year of academic studies
I would like to extend my sincere gratitude and appreciation to UNILAK
Our cordial thanks go to the Management team of RUSORORO UMURENGE SACCO of for giving
allowed us to carry out this research within their organization.
This study has been completed through the generous and valuable assistance of the flowing people and
organization: our supervisor Mr. HABYARIMANA Valens for the support, guidance insight and
patience in this research, the Fond d’Assitance aux Réscapés du Genocide (FARG) for their support in
our studies, we are also grateful to our friends and classmates for their help and prayers.
May the Almighty God bless you all!
MUKAMANA Evarithe
v
ABSTRACT
The present study is on the role of Umurenge SACCO loans in socio-economic development of
clients, case study of Rusororo Umurenge SACCO. The Research questions were as follows: What are
the benefits of UMURENGE SACCO loans to its clients in their socio-economic development? How
is the socio-economic development situation of Umurenge SACCO clients before and after getting
loans? Is there any relationship between Umurenge SACCO loans and socio-economic development of
clients? The objective of the study is to assess the role of Umurenge SACCO loans in socio-economic
development of clients in Rusororo Umurenge SACCO.
The targeted population was 5233 members of Rusororo Umurenge SACCO from which a sample of
94 members was purposively elected. The data were collected using questionnaire, interview and
documentation. The analysis of data was done via SPSS. The study has found that SACCO loans have
positive impact to socio-economic development on Umurenge SACCO’s clients according the funding
43.6% improve form category two to category three.
The study has showed that Umurenge SACCO’s loan have positive contribution on socio economic
categories of clients by helping them increasing they income, saving, asset owned. Improve level of
education of children, create new business activities or expand existing ones, improve house and build
new ones. The result shows that beneficiaries had increased their monthly income loan and creates the
small and medium business for their wealth growth. The credits getting from SACCO contributes on
saving of beneficiaries from after getting from 10000 to 700000 and above towards economic
development where 51.1% prove that loans granted contributes to the development of beneficiaries
and community through satisfying the daily needs of households.
As most of client of Rusororo Umurenge SACCO was challenged by luck of guaranteed and small
amount of money granted this study recommends that government of Rwanda should put in place a
guarantee scheme to enable beneficiaries who have not collateral securities. This will enable them to
have access to loan since the majority of beneficiaries lack collateral in order to motivate them to
apply for loans and it is advisable to SACCO to offer the valuable amount to beneficiaries and reduce
the interest rate in order to facilitate its member’s as clients in general to meet their repayments
schedules so as to encourage prompt loan repayment.
vi
LIST OF ABBREVIATIONS, ACRONYMS AND SIGNS
BNR : Rwanda National Bank
BPR : Banque Populaire du Rwanda
DCO : District Cooperatives Officers,
EDPRS : Economic Development and Poverty Reduction Strategy
FARG : Fond d’Assistance aux Réscapés du Genocide
ICA : International Cooperative Alliance
ID : Identity
IGA : Income Generating Activity
MFIs : Microfinance Institutions
MINECOFIN: Ministry of Finance and Economic Planning
RCA : RWANDA COOPERATIVES AGENCY
SACCO : Savings and Credit Cooperatives
SCOs : Sector Cooperative Officers
SES : Socio-economic status
SPSS : Statistical Package for the Social Sciences
UNILAK : University of Lay Adventists of Kigali
WOCCU : World Council of Credit Unions (World Council)
vii
TABLE OF CONTENTS
DECLARATION ....................................................................................................................................... i
CERTIFICATION .................................................................................................................................... ii
DEDICATION ........................................................................................................................................ iii
ACKNOWLEDGMENT ......................................................................................................................... iv
ABSTRACT ............................................................................................................................................. v
LIST OF ABBREVIATIONS, ACRONYMS AND SIGNS .................................................................. vi
TABLE OF CONTENTS ....................................................................................................................... vii
TABLE OF FIGURES ........................................................................................................................... xii
LIST OF TABLES ................................................................................................................................ xiii
CHAPTER ONE ....................................................................................................................................... 1
INTRODUCTION AND BACKGROUND TO THE STUDY ............................................................... 1
1.1. Background to the study ............................................................................................................ 2
1.2. Statement of the problem ........................................................................................................... 2
1.3. Objectives of the study .............................................................................................................. 3
1.3.1. General objective ................................................................................................................ 3
1.3.2. Specific objectives .............................................................................................................. 3
1.4. Research questions ..................................................................................................................... 3
1.5 Significance of the study ................................................................................................................ 3
1.5.1. To the UNILAK community .................................................................................................. 4
1.5.2. To the government .................................................................................................................. 4
1.5.3. To the researcher ..................................................................................................................... 4
1.5.4. To UMURENGE SACCO and other Microfinance Institutions ............................................. 4
1.5.5. To the customers of UMURENGE SACCO ........................................................................... 4
viii
1.6. The scope of the study ............................................................................................................... 5
1.6.1. Content scope. .................................................................................................................... 5
1.8. Study organization ..................................................................................................................... 6
CHAPTER TWO ...................................................................................................................................... 7
LITERATURE REVIEW ......................................................................................................................... 7
2.0 Introduction ..................................................................................................................................... 7
2.1. Definition of key concept .................................................................................................................. 7
2.1.1. ROLE ...................................................................................................................................... 7
2.1.2. UMURENGE .......................................................................................................................... 7
2.1.3. SACCO ................................................................................................................................... 7
2.1.5. UMURENGE SACCO ........................................................................................................... 8
2.1.6. LOAN .................................................................................................................................... 10
2.1.7. SOCIAL ECONOMIC .......................................................................................................... 10
2.1.8. DEVELOPMENT ................................................................................................................ 11
2.1.9. SOCIAL ECONOMIC DEVELOPMENT ........................................................................... 12
2.1.10. ECONOMIC DEVELOPMENT ......................................................................................... 13
2.3. Brief history of Cooperative ........................................................................................................ 19
2.3.1. Pre and Post-Independence ................................................................................................... 20
2.3.1. COOPERATIVE PRINCIPLES .......................................................................................... 21
2.3.2. Cooperative objectives .......................................................................................................... 23
2.3.3. Contribution to micro economic policy ................................................................................ 23
2.3.4. Rwanda Cooperative approval .............................................................................................. 24
2.4. THEORY RELATED TO UMURENGE SACCO...................................................................... 24
2.4.1. Reasons for Saving by the Communities .............................................................................. 25
2.4.2. Organizational vision, mission, goals and objectives. .......................................................... 25
ix
2.4.3. SAVINGS FROM THE UMURENGE SACCO MEMBERS PERSPECTIVE ................... 26
2.4.4. Advantages of SACCO ......................................................................................................... 27
2.5. RELATIONSHIP BETWEEN UMURENGE SACCO AND ITS CLIENT ............................... 27
2.5.1. The contribution of SACCO’s loan to the social economic status of clients ........................ 27
2.5.2. Financial cooperatives and Poverty reduction ...................................................................... 28
2.5.3. The contribution of SACCO in members’ income ............................................................... 28
CHAPTER THREE ................................................................................................................................ 30
RESEARCH METHODOLOGY ........................................................................................................... 30
3.1. Introduction .............................................................................................................................. 30
3.2. Research design ........................................................................................................................... 30
3.3 The population .............................................................................................................................. 30
3.4 Source of data ............................................................................................................................... 30
3.4 Sampling ....................................................................................................................................... 30
3.5. Data collection techniques ........................................................................................................... 31
3.5.1. Questionnaire ........................................................................................................................ 31
3.5.2 .Interview ............................................................................................................................... 32
3.5.3. Documentary techniques ....................................................................................................... 33
3.6. Data processing and assessment .................................................................................................. 33
3.6.1. Data Processing ..................................................................................................................... 33
3.6.2. Editing ................................................................................................................................... 33
3.6.3. Coding ................................................................................................................................... 33
3.6.4. Tabulation ............................................................................................................................. 33
3.7. Data analysis techniques .............................................................................................................. 34
3.8. Description of UMURENGE SACCO RUSORORO.................................................................. 34
3.8.1. Location ................................................................................................................................ 34
x
3.8.2. Mission .................................................................................................................................. 34
3.8.3. Vision .................................................................................................................................... 34
3.8.4. Objectives .............................................................................................................................. 34
3.8.5. Requirements to be a member of Umurenge SACCO Rusororo .......................................... 34
3.8.6. Criteria for acquiring credit/loans from Umurenge SACCO Rusororo ................................ 35
3.8.7. Kinds of loans offered by Umurenge SACCO Rusororo ...................................................... 35
3.9. Organization structure of UMURENGE SACCO RUSORORO ................................................ 36
CHAPTER FOUR .................................................................................................................................. 37
RESULTS AND DISCUSSION ............................................................................................................ 37
4.1. Introduction .............................................................................................................................. 37
4.2. Profile of respondents .............................................................................................................. 37
4.2.1. Gender of respondents ...................................................................................................... 37
4.2.2. Age of respondents ........................................................................................................... 37
4.2.3. Education of Respondents ................................................................................................ 38
4.3. Socio-economic status of respondents ..................................................................................... 39
4.3.1. Beneficiaries of Umurenge SACCO Rusororo loans ....................................................... 39
4.3.2. Types of activities for loans granted to the clients ........................................................... 40
4.4. Socio-economic status of clients after receiving the loans ...................................................... 41
4.4.1. Clients’ income before joining Umurenge SACCO Rusororo ......................................... 41
4.4.2. Clients’ incomes after joining Umurenge SACCO Rusororo ......................................... 42
4.4.3. Clients’ savings before joining Umurenge SACCO Rusororo ......................................... 42
4.4.4. Saving of clients after joining Umurenge SACCO Rusororo .......................................... 43
4.4.5. Socio economic status (SES) improvement due to loan granted by Umurenge SACCO
Rusororo .......................................................................................................................................... 44
4.4.6. Acquisition of assets by clients of Umurenge SACCO Rusororo .................................... 45
4.4.7. Acquisition of domestic animals by clients ...................................................................... 46
xi
4.4.8. Education of clients’ children before getting loans .......................................................... 47
4.4.9. Education of clients’ children after getting loans ............................................................. 48
4.5. Contribution of loan granted to poverty reduction .................................................................. 48
4.6. Importance of SACCO’s loan to clients .................................................................................. 49
4.7. Relationships between Umurenge SACCO Rusororo services and clients socio economic
status 50
CHAPTER FIVE .................................................................................................................................... 52
SUMMARY, CONCLUSION AND RECOMMENDATIONS ............................................................ 52
5.1. Introduction .................................................................................................................................. 52
5.2. Summary of major finding........................................................................................................... 52
5.2.1. Finding on type of activities granted by Umurenge Sacco ................................................... 52
5.2.2. Finding on analysis of improvement in Category of socio economic ................................... 52
5.2.3. Finding on contribution granted loans with important to Rusororo Umurenge clients ........ 52
5.3. Conclusion ................................................................................................................................... 53
5.4. Recommendations ........................................................................................................................ 53
5.4.1. To Rusororo Umurenge Sacco .............................................................................................. 53
5.4.2. To the future researcher ........................................................................................................ 53
REFERENCES ....................................................................................................................................... 55
APPENDICES ........................................................................................................................................ 58
xii
TABLE OF FIGURES
Figure 1: Conceptual framework of the study ........................................................................................................ 5
Figure 2. Organization structure of UMURENGE SACCO RUSORORO. ......................................................... 36
xiii
LIST OF TABLES
Table 4.1. Gender of respondents ......................................................................................................................... 37
Table 4.2. Age of respondents .............................................................................................................................. 38
Table 4.3. Education of Respondents ................................................................................................................... 38
Table 4.4. Occupation of respondents................................................................................................................... 39
Table 4.5. Beneficiaries of SACCO Rusororo loans ............................................................................................ 40
Table 4.6. Types of activities for loans granted to the clients .............................................................................. 40
Table 4.7. Clients’ income before joining Umurenge SACCO Rusororo ............................................................ 41
Table 4.8. Clients’ incomes after joining Umurenge SACCO Rusororo .............................................................. 42
Table 4.9. Clients’ savings before joining Umurenge SACCO Rusororo ............................................................ 43
Table 4.10. Saving of clients after joining Umurenge SACCO Rusororo ............................................................ 44
Table 4.11. Socio economic status (SES) improvement due to loan granted by Umurenge SACCO Rusororo .. 45
Table 4.12. Acquisition of assets by clients of Umurenge SACCO Rusororo ..................................................... 46
Table 4.13. Acquisition of domestic animals by clients ....................................................................................... 47
Table 4.14. Education of clients’ children before getting loans ........................................................................... 47
Table 4.15. Education of clients’ children after getting loans .............................................................................. 48
Table 4.16. Contribution of loan granted to poverty reduction ............................................................................ 48
Table 4.17. Importance of SACCO’s loan to clients ............................................................................................ 49
Table 4.18. Relationships between SACCO Services and client’s economic status ............................................ 50
1
CHAPTER ONE
INTRODUCTION AND BACKGROUND TO THE STUDY
1.0. Introduction
The world over, the pursuit of development has taken the direction of socioeconomic development.
Rwandan population is involved in the development process, were marginalized and disadvantaged in
various aspects of development. Throughout the history of the development process, the development
practitioners have tried to identify strategies that could promote the level of the Rwandan participation
in development. Thus various interventions such as microfinance and SACCOs lending have been
specifically targeted at the Rwandan populations in a bid to improve their socio-economic levels of
development in Country.
Microfinance and SACCOs are facilities that make it possible for the focused poor people to get a
small loan to start a business, pay for school fees, procure housing or receive health care
(Microfinance vital to economic growth 2005:15). Such an initiative is instrumental in changing the
poverty patterns in view of improved facilities to lessen the challenge posed by startup capital.
Microfinance has been changing people’s lives and revitalizing communities since the beginning of
trade (United Nations 2005e:1).
Most poor people in rural areas manage to mobilize resources to develop their enterprises and their
dwellings slowly over time. Financial services could enable the poor to leverage their initiative,
accelerating the process of building incomes, assets and economic security (Vetrivel and
Kumarmangalam, 2010:1). Today, microfinance and SACCO institutions are accepted as necessary
instruments for reducing poverty in Rwanda. As long as, the appropriate instruments are well used in a
suitable legal framework, microfinance institutions can help in strengthening the rural household’s
capacities, to create jobs and to generate revenues on a sustainable basis (MINECOFIN, 2007: 2).
2
1.1. Background to the study
The ultimate objective of Rwanda’s long term development plan is to transform the country into a
middle-income country and an economic trade, communication and financial hub by the year 2020 and
2050. Towards the achievement of this the GoR has recently adopted an Economic Development and
Poverty Reduction Strategy (EDPRS), with Financial Sector Development as one of its key
components Indeed Rwanda’s economic development agenda can’t be achieved without a financial
sector that is effective, in particular that is capable to expand access to credit and financial services,
and to enhance saving mobilization and to mobilize long-term capital for investment. No economic
development will be possible as long as the current situation will persist with domestic savings
consistently negative and more than 50% of the population totally excluded from financial services,
even from informal ones (MINECOFIN,2008,p.1).
1.2. Statement of the problem
The government of Rwanda launched a microfinance policy and strategy where microfinance
institutions are considered as appropriate tools and road map for the realization of the government
vision of extending financial services to the rural people. The few available financial and non-financial
sectors have been in promoting development of rural area of Rwanda, and some remarkable changes
have been seen among community members. More than 65% poor people need access to credit.
Absence of formal employment makes them non bankable (MINECOFIN, 2007, p.13). Micro
financial services remain mostly located in cities and towns. Low-income households in rural areas of
Rwanda suffer from a lack of micro financial services options: individual loans used to finance short
term working capital requirements of existing businesses, group loans to support the income-
generating activities of Rwandan peoples in the lower income categories in daily life (MINECOFIN,
2007, p.21).
Other microfinance tools, such as alternative credit and savings products, are rare in rural areas.
Agricultural credit programs also exist, but these programs in rural areas are few in number.
This is a big problem because more than 60% of Rwanda’s rural populations are poor and their
principal economic activity is farming. However, their farms do not produce even sufficient food for
family needs. Until recently, reiterate that no MFIs reached the poor people in rural areas for the
sustainable way of poverty reduction (MINECOFIN, 2007, p.21; Aeschliman et al., 2007, p.5). Such
3
people cannot provide material and financial guarantees, and in some cases are illiterate and therefore
unable to write up their projects and plans, or even fill in loan application forms. All what has been
discussed above aroused the curiosity of the researcher to study the extent to which Umurenge
SACCO loans contribute to poverty reduction in rural areas of Rwanda, focusing on loans delivery by
Rusororo Umurenge SACCO.
1.3. Objectives of the study
1.3.1. General objective
The general objective of the study is to assess the role of Umurenge SACCO loans in socio-economic
development of clients in Rusororo Umurenge SACCO.
1.3.2. Specific objectives
Specific objective pursued by this research are the following:
1. To identify the benefits of UMURENGE SACCO loans to its clients in their socio-economic
development
2. To examine the socio-economic situation of Umurenge SACCO clients before and after getting
loans.
3. Determine the relationship between Umurenge SACCO loans and socioeconomic development
of clients.
1.4. Research questions
1. What are the benefits of UMURENGE SACCO loans to its clients in their socio-economic
development?
2. How is the socio-economic development situation of Umurenge SACCO clients before and
after getting loans?
3. Is there any relationship between Umurenge SACCO loans and socio-economic development
of clients?
1.5 Significance of the study
The study will be very paramount to UMURENGE SACCOs loans in socio economic development in
Rwanda, which intend to start their financial activities on the benefit of Rwandan population. It is also
helpful to the researcher and other stakeholders.
4
1.5.1. To the UNILAK community
The study findings will be significant to UNILAK students, faculty and staff who have interest in the
finance, by adding on the volume of materials in the library for reference and guide for further
research.
1.5.2. To the government
It will be helpful to the government to encourage MFIs Such as UMURENGE SACCO to put more
efforts in Encourage Rwandan population to use UMURENGE SACCO loans in development and
reduce socioeconomic impact.
1.5.3. To the researcher
The study will enable researcher to gain knowledge and skills of analyzing and interpreting data about
the contribution of UMURENGE SACCO in reduction of poverty in Rwanda. It’s also a fulfillment of
one of the requirements for the award of the Bachelors degree of Finance.
1.5.4. To UMURENGE SACCO and other Microfinance Institutions
The research findings can be useful to UMURENGE SACCO as well as other players in the
microfinance sector. The microfinance institutions can use the study recommendations to improve
their loan operation.
1.5.5. To the customers of UMURENGE SACCO
It will be helpful the customers of UMURENGE SACCO to encourage the savings, getting loan and
reducing the poverty in general and improve socio economic development.
It will be add the number of customers of UMURENGE SACCO in revenue creation and job creation
in improvement of socio economic development.
5
1.6. The scope of the study
This study will be carried the role of Umurenge SACCO loans in socio-economic development of
clients facing RUSORORO UMURENGE SACCO located in Gasabo district, Rusororo Sector, during
the period 2013-2015.
1.6.1. Content scope.
The research will focus on assessing the role of UMURENGE SACCOs loan in socio economic
development in poverty reduction and it will be based on information collected either directly from
there UMURENGE SACCO RUSORORO or from other reliable sources.
1.7. Conceptual framework of the study
The conceptual framework interlinks Independent variable and dependent variable. In this independent
variable represent the opportunities, services offered by SACCO mainly credit and saving. The
services and opportunities offered by SACCO include: saving product, investments opportunities in
form of shares and these services have positive impact on the members socioeconomic status (SES).
The dependent variable present impact on the member’s socio economic status, as result of activities
of highlighted above, improving their socio economic status. It is assumed that SACCO help
individual to increase their monthly income, assets owned investment, take children to schools and
improve housing/shelter.
Independent variables Dependent Variables
Socio economic Status of members:
Income,
Assets ownership
Investment
Employment
Consumption/expenditure
Access to basic need and services(health,
education, food, water ,electricity shelter)
Services
offered by
SACCO:
Credit
Saving
Figure 1: Conceptual framework of the study
6
1.8. Study organization
This study is organized in five chapters: the first chapter of study is the general introduction,
background to the study, problem statement, research questions, significance to the study and scope of
the study which show in details the ground upon which the researcher based to carry this research.
The second chapter is literature review that examines the works already conducted on contribution of
UMURENGE SACCO and the issues relating to the role of UMURENGE SACCO loans in socio
economic development.
The third chapter entails methods, techniques and procedures used. It deals with techniques and
procedures used in investigation and data collection and analysis. It includes area of the study,
population and sample selection of the study.
Chapter four deals with the results presentation, discussion and interpretation and The fifth chapter
which is the last one is all about the summary of major findings, conclusion derived from the study,
recommendations and suggestions.
7
CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter comprises what the researcher has written about “the role of Umurenge SACCO loans in
socio-economic development of clients”, the keys concept and other terns related to the research topic.
This entail mainly the definition and all the necessary detail about SACCO’s loan in socio economic
development, their analysis and interpretation to get a clear and more meaningful understanding of the
impact Umurenge SACCO’s loan in socio economic development.
2.1. Definition of key concept
The definition of key concept is very important research and social sciences studies since one word
can be define differently by different researcher and therefore the meaning of that word will be
different according to the domain of research. The key concept thereafter defined, will have the socio
economic development in UMURENGE SACCO in our dissertation.
2.1.1. ROLE
According Longman, Active Study Dictionary 5th
Edition, Role is the way in which someone or
something is involved in activity or situation.
2.1.2. UMURENGE
UMURENGE is the third level administrative subdivision in Rwanda. The Provinces of Rwanda are
subdivided into 30 districts. Each district is in turn divided into sectors. There are 416 Sectors. This
entire administrative structure is undergoing a process of decentralization devolving greater authority
to local governments and municipalities following an administrative reorganization begun in 2002
2.1.3. SACCO
SACCO is the acronym for Savings And Credit Co-operative (RCA,
http://rca.gov.rw/spip.php?article71 accessed 18th
may 2016). Savings and Credit Co-operative
(SACCO) is a type of co-operative whose objective is to pool savings for the members and in turn
provide them with credit facilities. Other objectives of SACCOs are to encourage thrift amongst the
members arid also to encourage them on the proper management of money and proper investments
practices. Whereas in urban areas salary and wage earners have formed Urban SACC0s, in rural areas,
8
farmers have formed Rural SACCOs. There are also traders, transport, jua-kali and community based
SACCO’s. There is no difference between a credit union and a SACCO. The term “credit union” is
generally not used in Africa and specifically in South Africa to avoid confusion with the various
labour movements.
A Savings and Credit Co-operative (SACCO) is a democratic, unique member driven, self-help co-
operative. It is owned, governed and managed by its members who have the same common bond:
working for the same employer, belonging to the same church, labour union, social fraternity or
living/working in the same community. A Savings and Credit Co-operative’s membership is open to
all who belong to the group, regardless of race, religion, colour, creed, and gender or job status. These
members agree to save their money together in the SACCO and to make loans to each other at
reasonable rates of interest. Interest is charged on loans, to cover the interest cost on savings and the
cost of administration. There is no payment or profit to outside interest or internal owners. The
members are the owners and the members decide how their money will be used for the benefit of each
other.
A Savings and Credit Cooperative Society (SACCO) is a member-owned financial cooperative whose
primary objective is to mobilize savings and afford members access to loans (productive and
provident) on competitive terms as a way of enhancing their socio-economic well-being. It is formed
by people having a Common bond.
Savings and Credit Co-operatives are democratic organizations and decisions are made in a structured
democratic way. Members elect a board that in turn employs staff to carry out the day-to-day activities
of the SACCO. The numbers of board members are between nine and fifteen. Members also elect a
supervisory committee to perform the function of an internal audit.
2.1.5. UMURENGE SACCO
Umurenge SACCOs is a government initiative aimed at increasing the financial inclusion to Rwandan
citizens. The concept of Umurenge Savings and Credit Cooperatives (Umurenge SACCOs) was based
on an understanding that banks and other financial institutions were more concentrated in urban areas
whilst the majority of the Rwandan population lives in rural areas and totally excluded from the formal
financial institutions. Banks and other financial institutions were also not able to provide financial
9
services that were ideal to serve the poorest of poor. Establishing a SACCO in every Umurenge was
aimed at bridging this gap as planned by Umurenge SACCO strategy (MINECOFIN, 2009, p.1)
The objective was to encourage local citizens to use financial institutions to enable them to save and
access loans and ultimately providing them with the opportunity to build financial security that would
better enable them to manage financial shocks and to invest in business opportunities. This would, in
turn, allow them to move out of chronic poverty and improve their livelihoods as planned by the first
phase of the Economic Development of Poverty Reduction Strategy (MINECOFIN, 2007).
Different government departments and non-government organizations, especially those working in the
areas of decentralization and local governance, have made efforts to mobilize Rwandans towards this
program. The National Bank of Rwanda (BNR) is responsible for the regulatory framework within
which Umurenge SACCOs operate – setting operating standards, providing trading licenses and
ensuring that the Umurenge SACCOs conform to expected standards.
Despite the apparent success of Umurenge SACCO program, there are a number of important issues
that need to be addressed in order to improve Umurenge SACCOs’ performance and to make it more
inclusive. Many of them suffer from weaknesses in their governance, which is rooted in a poor sense
of cooperative ownership among members. Explaining this issue requires looking at the history of how
these institutions have been formed: unlike more authentic cooperative institutions in countries with
developed SACCO sectors, Umurenge SACCOs and indeed even some of the non-Umurenge
SACCOs are institutions that were established and organized by parties other than the members
themselves. The expectation is that once formed, these institutions would then be accepted and ran by
the members as if it was theirs. But this has not yet been realized: members do not quite understand
what these institutions are for, what the benefits of being a member of a SACCO are, and what their
membership actually entails. Even more importantly, the parties and stakeholders involved in the
promotion of SACCOs also seem to have limited understanding of what is needed in order to make
SACCOs work. Exacerbating these problems are the severe capacity constraints among SACCOs,
especially among Umurenge SACCOs. The quality of leadership and management, i.e. the control and
governance of institutions; The institutional systems/processes required for institutions to function and
achieve their objectives as financial service providers; The facilities they need to deliver services (e.g.
building quality and location).These issues critically affect the current ability of these young financial
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institutions to deliver inclusive financial services and effectively reach all low-income groups as
underlined by the Fin scope survey in 2012 ( Fin Mark Trust , 2012).
2.1.6. LOAN
According MacMillan English dictionary for advanced learned edition loan is an amount of money
that person, business or country borrows especially form bank.
Signoriello, Vincent J. (1991), In finance, a loan is the lending of money from one individual,
organization or entity to another individual, organization or entity. A loan is a debt provided by an
entity (organization or individual) to another entity at an interest rate, and evidenced by a promissory
note which specifies, among other things, the principal amount of money borrowed, the interest rate
the lender is charging, and date of repayment. A loan entails the reallocation of the subject asset(s) for
a period of time, between the lender and the borrower.
In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the
lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time.
The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive
for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is
enforced by contract, which can also place the borrower under additional restrictions known as loan
covenants. Although this article focuses on monetary loans, in practice any material object might be
lent.
Acting as a provider of loans is one of the principal tasks for financial institutions such as banks and
credit card companies. For other institutions, issuing of debt contracts such as bonds is a typical source
of funding.
2.1.7. SOCIAL ECONOMIC
John et al and Peter Newman ([1987] 1989, [vii] v-vi).social economics known as Socioeconomic is
the social science that studies how economic activity affects and is shaped by social processes. In
general it analyzes how societies progress, stagnate, or regress because of their local or regional
economy, or the global economy
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According Jess Benhabib, Alberto Bisin and Matthew O. Jackson in Social Economics: A Brief
Introduction to the Handbook Social economics is the study, with the methods of economics, of social
phenomena in which aggregates affect individual choices. Such phenomena include, just to mention a
few, social norms and conventions, cultural identities and stereotypes, peer and neighborhood effects.
2.1.8. DEVELOPMENT
According Business Dictionary Development is The systematic use of scientific
and technical knowledge to meet specific objectives or requirements, An extension of the theoretical
or practical aspects of a concept, design, discovery, or invention, The process of economic and
social transformation that is based on complex cultural and environmental factors and their
interactions, The process of adding improvements to a parcel of land, such as grading, subdivisions,
drainage, access, roads, utilities.
According World Bank (2004), it is somewhat easier to say which countries are richer and which are
poorer. But indicators of wealth, which reflect the quantity of resources available to a society, provide
no information about the allocation of those resources for instance, about more or less equitable
distribution of income among social groups, about the shares of resources used to provide free health
and education services, and about the effects of production and consumption on people’s environment.
Thus it is no wonder that countries with similar average incomes can differ substantially when it
comes to people’s quality of life: access to education and health care, employment opportunities,
availability of clean air and safe drinking water, the threat of crime, and so on. With that in mind, how
do we determine which countries are more developed and which are less developed?
2.1.8.1. Goals and means of development
Different countries have different priorities in their development policies. But to compare their
development levels, you would first have to make up your mind about what development really means
to you, what it is supposed to achieve. Indicators measuring this achievement could then be used to
judge countries’ relative progress in development. Is the goal merely to increase national wealth, or is
it something more subtle? Improving the well-being of the majority of the population? Ensuring
people’s freedom? Increasing their economic security? Recent United Nations documents emphasize
“human development,” measured by life expectancy, adult literacy, access to all three levels of
education, as well as people’s average income, which is a necessary condition of their freedom of
choice. In a broader sense the notion of human development incorporates all aspects of individuals’
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well-being, from their health status to their economic and political freedom. According to the Human
Development Report 1996, published by the United Nations Development Program, “human
development is the end economic growth a means.” It is true that economic growth, by increasing a
nation’s total wealth, also enhances its potential for reducing poverty and solving other social
problems. But history offers a number of examples where economic growth was not followed by
similar progress in human development. Instead growth was achieved at the cost of greater inequality,
higher unemployment, weakened democracy, loss of cultural identity, or overconsumption of natural
resources needed by future generations. As the links between economic growth and social and
environmental issues are better understood, experts including economists tend to agree that this kind of
growth is inevitably unsustainable that is, it cannot continue along the same lines for long. First, if
environmental and social/human losses resulting from economic growth turn out to be higher than
economic benefits (additional incomes earned by the majority of the population), the overall result for
people’s wellbeing becomes negative. Thus such economic growth becomes difficult to sustain
politically. Second, economic growth itself inevitably depends on its natural and social/human
conditions. To be sustainable, it must rely on a certain amount of natural resources and services
provided by nature, such as pollution absorption and resource regeneration. Moreover, economic
growth must be constantly nourished by the fruits of human development, such as higher qualified
workers capable of technological and managerial innovations along with opportunities for their
efficient use: more and better jobs, better conditions for new businesses to grow, and greater
democracy at all levels of decision-making.
Conversely, slow human development can put an end to fast economic growth. According to the
Human Development Report 1996, “during 1960–1992 not a single country succeeded in moving from
lopsided development with slow human development and rapid growth to a virtuous circle in which
human development and growth can become mutually reinforcing.” Since slower human development
has invariably been followed by slower economic growth, this growth pattern was labeled a “dead
end.”
2.1.9. SOCIAL ECONOMIC DEVELOPMENT
Socio-economic development is the process of social and economic development in a society. Socio-
economic development is measured with indicators, such as GDP, life expectancy, literacy and levels
of employment. Changes in less tangible factors are also considered, such as personal dignity, freedom
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of association, personal safety and freedom from fear of physical harm, and the extent of participation
in civil society. Causes of socio-economic impacts are, for example, new technologies, changes in
laws, changes in the physical environment and ecological changes.
2.1.10. ECONOMIC DEVELOPMENT
According to Smith (2006:103), the term economic development gets a unique understanding to the
books of Professor Michael Todaro.
The word “development” implies the process and the positive changes in the growth of the wealth of
given country and therefore the growth of the well-being of its citizen. It is necessary to mention that
the economic that the economic development may be seen as synonymy of well-being of the country.
The term economic development also emphasizes the importance of constant economic growth that is
achieved through the competency of the national companies and their work force. The various
innovations, raising the economic competency of the countries. And though there is not accepted
theory of economic development there still is variety of factors that can help to identify the important
of economic development and means of achieving it. Another vital part of making a country
economically developed are investment that help to develop the manufacture and production of the
sufficient amount of products enough to be distributed in order to cover vital needs of the population
and guarantee its well-being and therefore economic development.
2.1.10.1. Social economic status
Social economic status (SES) according to Considine and Zappala (2002) is a person’s overall social
position to which attainment in both the social and economic domain contributes. They add that social
economic status is determined by an individual’s achievement in, education, employment,
occupational status and income. Socioeconomic status is an individual’s or family’s economic and
social position in relation to other, based on income, education and occupation.
2.1.10.2. Saving
Saving can be defined as the portion of disposable income not spent on consumption of consumer
goods but accumulated or invested directly in capital equipment or in paying off a home mortgage, or
indirectly through purchase of securities. It’s means also as the sacrificing of current consumption so
as to increase the availability of resources for future consumption (need).
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Savings, according to Keynesian economics, consist of the amount left over when the cost of a
person's consumer expenditure is subtracted from the amount of disposable income that he or she
earns in a given period of time.
According Random House (2006),Saving is income not spent, or deferred consumption. Methods of
saving include putting money aside in, for example, a deposit account, a pension account,
aninvestment fund, or as cash. Saving also involves reducing expenditures, such as recurring costs. In
terms of personal finance, saving generally specifies low-risk preservation of money, as in a deposit
account, versus investment, wherein risk is higher; in economics more broadly, it refers to any income
not used for immediate consumption.
Saving differs from savings. The former refers to the act of increasing one's assets, whereas the latter
refers to one part of one's assets, usually deposits in savings accounts, or to all of one's assets. Saving
refers to an activity occurring over time, a flow variable, whereas savings refers to something that
exists at any one time, a stock variable. This distinction is often misunderstood, and even professional
economists and investment professionals will often refer to "saving" as "savings" (for
example, Investopedia confuses the two terms in its page on the "savings rate").
In different contexts there can be subtle differences in what counts as saving. For example, the part of
a person's income that is spent on mortgage loan repayments is not spent on present consumption and
is therefore saving by the above definition, even though people do not always think of repaying a loan
as saving. However, in the country measurement of the numbers behind its gross national product (i.e.,
the National Income and Product Accounts), personal interest payments are not treated as "saving"
unless the institutions and people who receive them save them.
Saving is closely related to physical investment, in that the former provides a source of funds for the
latter. By not using income to buy consumer goods and services, it is possible for resources to instead
be invested by being used to produce fixed capital, such as factories and machinery. Saving can
therefore be vital to increase the amount of fixed capital available, which contributes to economic
growth.
However, increased saving does not always correspond to increased investment. If savings are stashed
in or under a mattress, or otherwise not deposited into a financial intermediary such as a bank, there is
no chance for those savings to be recycled as investment by business. This means that saving may
increase without increasing investment, possibly causing a short-fall of demand (a pile-up of
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inventories, a cut-back of production, employment, and income, and thus a recession) rather than to
economic growth. In the short term, if saving falls below investment, it can lead to a growth
of aggregate demand and an economic boom. In the long term if saving falls below investment it
eventually reduces investment and detracts from future growth. Future growth is made possible by
foregoing present consumption to increase investment. However savings kept in a mattress amount to
an (interest-free) loan to the government or central bank, who can recycle this loan.
In a primitive agricultural economy savings might take the form of holding back the best of the corn
harvest as seed corn for the next planting season. If the whole crop were consumed the economy
would convert to hunting and gathering the next season.
Umurenge SACCO members have the urge to develop and to make their live better. The question
remains therefore, how can they make their lives better? Saving for the future is one of the ways that
they can improve on their livelihood.
It is therefore essential to kwon the various saving products available so that one makes the best choice
and selects what suits them best. Saving products can broadly be classified in to three namely:
compulsory saving products, Voluntary saving products, Contractual savings products.
Compulsory saving products
Compulsory savings are those that individuals and institutions are compelled to make as per
government rules. The provident fund schemes and pension fund schemes are the examples of
compulsory savings.
These are funds that must be contributed by all member of SACCO’s as a condition of membership
and in some instances to access credit (loans). Compulsory saving can be considered as a part of a loan
product rather than actual saving product since they are closely tied to receiving and repaying loans.
Compulsory saving is a saving that member is forced to make on regular basis; it is a membership
saving and must be saved on a weekly or monthly basic. This compulsory saving is collected to on
lend to members. If members fail to save on time they will get penalized based on the saving policy of
the society. Unless the member quits from membership, he or she should save on regular basis. If a
member wants to withdraw from the SACCO, He will have the right to take this compulsory saving.
The SACCOs are supposed to provide interest for this saving.
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Voluntary saving products
Voluntary savings can be done as per the needs and requirement of the families. Money can be
deposited in post offices, banks, Chit finds, shares, mutual funds and other such institutions. The rates
of interest are different in various institutions. It is generally fixed according to the time period of the
deposited amount. Interest rate varies from time to time.
Farmers, and other individuals, can save the full amount for the coming year’s compulsory saving in
advance with the SACCO by depositing 12 months’ worth of saving in a voluntary account. Following
that, each month on the appropriate day the member will come to the SACCO and allows individuals
with seasonal income to be members. This ensures regular flow of cash to the SACCO society and
promotes members participation. This kind of saving can be withdrawn at any time when the owner
needs it.
The SACCO society may or may not provide saving interest for this voluntary saving. Farmer are
highly advised to save on voluntary saving for small capital investment like purchasing seed
cultivation.
Contractual saving is savings in the form of regular payments into long-term investments such
as pension schemes.
Savings made on a continued basis as part of an agreement. For example, people with an interest only
mortgage, may make an agreement to save a certain amount in order to be able to pay back the
mortgage capital.
Contractual savings are designed to ensure a minimum level of spending; they can help people with
low self discipline for savings. Contractual savings schemes usually have a penalty for stopping
paying into them.
These are the kind of saving accounts were by the person saves to meet a particular goal. These
include :
1. School fees saving account: This is the type of account used by most parent so that they are
able to save for their children’s education.
2. Target saving accounts: This is where the client opens up an account particularly to meet a
particular target like buying land, paying a mortgage among other.
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3. Fixed Deposit Accounts :This is the saving account were by deposits once and they withdraw
the maney after a period of time. The time ranges from 3 months onwards. This kind of saving
is not used by most SACCOs unless the SACCO has acquired and mastered the good skills in
managing the loans and savings effectively.
It can be short term saving like if someone wants to pay school fees, hem ay save to pay school fees.
It can also be long term like fixed deposit accounts were time deposit bring the opportunity of high
interest rate on saving.
This kind of saving is good in future when the SACCO is good capacity and position of managing its
saving and loans properly and if there is a shortage financial demand by members.
2.1.10.3. Credit
The term credit or loan are synonym and are used to mean one reason why in the following definition
we have used only the term credit.
The amount of money available to be borrowed by an individual or a company is referred to as credit
because it must be paid back to the lender at some point in the future. For example, when you make a
purchase at your local mall with your VISA card it is considered a form of credit because you are
buying goods with the understanding that you'll need to pay for them later.
Other example, on a company's balance sheet, a debit will increase the inventory account (an asset) if
the company buys merchandise for resale on credit. On the other hand, a credit will increase the
company's accounts payable (a liability).
Credit is a contractual agreement in which a borrower receives something of value now and agrees to
repay the lender at some date in the future, generally with interest. The term also refers to the
borrowing capacity of an individual or company.
An accounting entry that either decreases assets or increases liabilities and equity on the company's
balance sheet. On the company's income statement, a debit will reduce net income, while a credit will
increase net income.
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For example, on a company's balance sheet, a debit will increase the inventory account (an asset) if the
company buys merchandise for resale on credit. On the other hand, a credit will increase the
company's accounts payable (a liability).
Ross Levine and Sara Zervo(1998, page 542) Bank Credit improves upon traditional financial depth
measures of banking development by isolating credit issued by banks, as opposed to credit issued by
the central bank or other interme diaries, and by identifying credit to the private sector, as opposed to
credit issued to gover-ments. In our empirical work, we also used traditional measures of financial
depth and dis-cuss some of these results below. We focus almost exclusively on the results with Bank
Credit.
Therefore credit is the money that is recieved form somewhere ; this enables the use of anticipated for
current consumption.
Credit are the provision of resources such a loan ny one party to another party where the second
doesn’t reimburse the first one immediately , there by generating a debt and arranges either to reply or
return those resources or material of equal value at a later date. The first party is called creditor , also
known as a lender, while the second party is called a debetor also known as borrower.
2.1.10.4. Saving and credit cooperative (SACCO)
A SACCO is a financial institution under the cooperative form. As such it is a cooperative which
operates in the financial system; it is a legal entity, in which individuals save their money and can get
loans in order to invest in various activities.
The basic structure of the SACCOs and credit unions is what differentiates them from banks; they are
user-owned financial intermediaries. Members typically have a “common bond” based on geographic
area, employer, community, industry or other affiliation. Each member has equal voting rights
regardless of their deposit amount or how many shares they own. Their principal products are savings
and credit, however some offer money transfers, payment services and insurance. SACCOs sometimes
join together to create second tier associations for the purposes of building capacity, liquidity
management and refinancing; these second-tier associations can play a useful role in monitoring
(CGAP; Brian Branch, WOCCU, August 2005) a
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2.1.10.5. Cooperative
According Monzon, J. L. & Chaves, R. (2008) A co-operative also known as co-
op, cooperative or coop is an autonomous association of people united voluntarily to meet their
common economic, social, and cultural needs and aspirations through a jointly owned
and democratically controlled business. Since 2002 Cooperatives and Credit Unions could be
distinguished by use of a .coop domain. Since 2014, following International Cooperative Alliance's
introduction of the Cooperative Marque, ICA Cooperatives and WOCCU Credit Unions can also be
identified by a coop Ethical consumerism label.
Cooperatives include non-profit community organizations and businesses that are owned and managed
by the people who use their services (a consumer cooperative); by the people who work there
(a worker cooperative); by the people who live there (a housing cooperative); hybrids such as worker
cooperatives that are also consumer cooperatives or credit unions; multi-stakeholder cooperatives such
as those that bring together civil society and local actors to deliver community needs; and second and
third tier cooperatives whose members are other cooperatives.
As defined by Jerry (1988, page 85) a copperative is volontary association with unrestricted
membership and collectively owned organized on domocratic principles of equity by persons of
moderate means and incomes who join together to satisfy their needs and wants through matual actual
action in which the objective of production and distribution is service rather than profit.
Types of Cooperatives
Cooperative Organizations may carry out activities in all sectors of economic and social life, and
theare divided into the following categories:
1. Production and marketing Cooperative Organizations;
2. Commercial and Consumer cooperative Organizations;
3. Services Cooperative Organizations;
4. Multipurpose Cooperative Organizations.
2.3. Brief history of Cooperative
The history of the cooperative movement in Africa can broadly be divided into three stages; colonial,
immediate post-colonial and liberalized (RCA, 2011.p.6).
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2.3.1. Pre and Post-Independence
Cooperatives have a long tradition in the region. Encouraged by colonial governments, the first
agricultural cooperative organizations were established already before the First World War. Uganda’s
first cooperatives were formed as early as 1913. The first group of cooperatives was set up by the
white farming communities. When allowed natives producers also formed agricultural cooperatives in
order to purchase inputs and secure markets for their produce. By the time of independence,
cooperatives were well established in all the countries in the region. Moreover, the colonial
administration had set up separate departments to promote and control the cooperative sector, which
primarily comprised agricultural marketing societies.
Following independence in the 1960s and later, the new governments strongly encouraged the
formation of agricultural cooperatives. There are several interrelated reasons for this emphasis on
cooperatives.
First, cooperatives were seen as suitable middle of the road organizations in the newly independent
societies, which in varying degrees shied away from the western capitalistic economic model.
Cooperatives fitted well in African socialism or humanism, as for instance in Tanzania and Zambia.
Second, cooperatives were not only seen as economic organizations. They were also regarded as
suitable mechanisms whereby the rural population could be mobilized for general development
purposes in a participatory and democratic manner. The consequence was that cooperatives
particularly the agricultural marketing societies to a certain extent became tools for government
policies and rural development plans. Governments and donors alike made use of the cooperative
structure for a number of well-intentioned development interventions. Unfortunately, these were often
imposed on the members.
Third, it was important for the new government to be able to control the marketing of important cash
crops. This was achieved by entrenching the state marketing boards, which together with the
agricultural cooperatives was given monopolies over the cash crops.
In order to initiate the formation of new cooperatives and support the sector it was necessary to expand
the government promotional and controlling machinery. The result was rapidly expanding cooperative
movements, which were established without the internal mobilization of the membership and without
due consideration to economic sustainability. In Zambia for instance, the number of cooperative rose
from 220 in 1964 to 1120 five years later.
This externally initiated and controlled development of the cooperatives had a number of
consequences. First, a considerable number of newly registered cooperative organizations soon
21
became dormant. They were simply not viable. Preparation work was hasty and in many instances,
ideological zeal overrode practical economic considerations. Second and of much great significance,
was the fact that an outside agent (e.g. the government) initiated –and then put itself in ultimate control
of the cooperative sector. The government conditioned the cooperators, and thus shaped the behavior
of the organizations for decades to come (RCA, 2011, p.6-7).
1.2 Cooperative Reform in Rwanda
The Government of Rwanda has a national policy on the promotion of cooperatives. The policy
document, prepared in 2006, describes the statements of goals and intents of the government for
cooperatives of all types in the country. It is the intention of the Government that when implemented,
the policy framework will facilitate the creation of a vibrant cooperative movement in Rwanda. It is
hoped that cooperatives will represent a major component of private sector enterprise, providing
income and employment opportunities for a significant part of the population, especially in the rural
areas of the country.
The nature of a vibrant cooperative movement will include an autonomous, self-reliant and sustainable
cooperative structure, effectively and efficiently meeting the need of grassroots and secondary
cooperative organizations.
The policy on the promotion of cooperatives incorporates the seven universal principles that are
recognized by the international community, including the Statement on the Cooperative Identity as
stipulated by the International Cooperative Alliance.
The promotion policy encourages all categories of cooperatives, including and not limited to savings
and credit cooperatives, agricultural production and marketing cooperatives, fishery cooperatives,
handicrafts cooperatives, workers cooperatives, housing cooperatives, among others (RCA, 2011, p.7).
2.3.1. COOPERATIVE PRINCIPLES
Cooperatives around the world generally operate according to the same core principles and values,
adopted by the International Co-operative Alliance in 1995. Cooperatives trace the roots of these
principles to the first modern cooperative founded in Rochdale, England in 1844.
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1. VOLUNTARY AND OPEN MEMBERSHIP
Cooperatives are voluntary organizations, open to all people able to use its services and willing to
accept the responsibilities of membership, without gender, social, racial, political or religious
discrimination.
2. DEMOCRATIC MEMBER CONTROL
Cooperatives are democratic organizations controlled by their members those who buy the goods or
use the services of the cooperative who actively participate in setting policies and making decisions.
3. MEMBERS' ECONOMIC PARTICIPATION
Members contribute equally to, and democratically control, the capital of the cooperative. This
benefits members in proportion to the business they conduct with the cooperative rather than on the
capital invested.
4. AUTONOMY AND INDEPENDENCE
Cooperatives are autonomous, self-help organizations controlled by their members. If the co-op enters
into agreements with other organizations or raises capital from external sources, it is done so based on
terms that ensure democratic control by the members and maintains the cooperative's autonomy.
5. EDUCATION, TRAINING AND INFORMATION
Cooperatives provide education and training for members, elected representatives, managers and
employees so they can contribute effectively to the development of their cooperative. Members also
inform the general public about the nature and benefits of cooperatives.
6. COOPERATION AMONG COOPERATIVES
Cooperatives serve their members most effectively and strengthen the cooperative movement by
working together through local, national, regional and international structures.
7. CONCERN FOR COMMUNITY
While focusing on member needs, cooperatives work for the sustainable development of communities
through policies and programs accepted by the members.
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2.3.2. Cooperative objectives
According to the Rwanda « law n° 50/2007 of 18/09/2007 determining the establishment, organization
and functioning of cooperative organizations in Rwanda » ; on the cooperative objectives ; the
cooperative objectives in brief are the following :
The improvement of economic welfare of its members, reinforcing their education, training and their
democracy.
Cooperative as an harmony tool; the cooperative contribute to reduce tension among people and help
the member to find a field of understanding each other.
According to Monnier (1999 ; p.45) the cooperatives objectives are created for accomplishing the
following objectives :
One of major objectives of cooperatives is to develop an organized mutual aid between members so as
to reduce the role of intermediaries in order to minimize cost and to maximize profit. This mutual aid
is more appreciated by the government and sponsor for a faster and sustainable development process
of the local people. Cooperative spirit eliminated the monopoly capitalists many years ago; it aimed at
monopolizing the local economy at the expanse of the local economic at the expense of the weaker
population. The member of cooperative being those who live or work together, they mainly emphasize
on rendering services rather than competing each other, which reinforce the equality, equity and social
relationship.
Cooperative in many nations is considered as factors of economic development. Cooperatives increase
the capital, income of members which create a great impact on national capital accumulation or
formation. This initiative creates equality and equity between members without considering the
proportion party of their shares. Thus the increase of income of members increases also the savings
and credit worthiness for further investments in economics of scale.
2.3.3. Contribution to micro economic policy
Economic policy aimed at specific sectors, industries, markets, or demographics. Microeconomic
policy is involved with the specific ways in which businesses and consumers interact, and frequently
24
takes the form of incentives or penalties on certain types of economic behavior, intended to bring
about economic or political goals.
The creation of cooperative reduces unemployment rate alleviation same how the inflation rate
through creation of jobs and distribution of revenues to peripheral. It is why cooperatives are
recognized as important in micro economic units for economic development.
2.3.4. Rwanda Cooperative approval
(http://www.rca.gov.rw/spip.php?article388 accessed on 3rd
April, 2016) to different Cooperative
founders model of by law ref (article 21,22) to facilitate the registration process. This initiative could
be reinforced by Cooperative information sharing between District Cooperatives Officers (DCO),
Sector Cooperative Officers (SCOs) and RCA staff, All this to facilitate or provide to Cooperatives
access to ICTs so that they use Web Enabled Management Information System and be able to help
Cooperatives to apply for legal personality online and get feedback via emails or via SMS.
2.3.4.1. Cooperative values in Rwanda
Co-operatives are based on the values of self-help, self-responsibility, democracy, equality, equity and
solidarity. In the tradition of their founders, co-operative members believe in the ethical values of
honesty, openness, social responsibility and caring for others.
2.4. THEORY RELATED TO UMURENGE SACCO
There are other important regulatory documents such as the Umurenge SACCOs Strategy published by
the Ministry of Finance and Economic Planning which gives guidelines on how the Umurenge
SACCOs are supposed to operate. The document spells out the government programme of creating at
least one SACCO at every level of the administrative sector (Umurenge). In addition to the Umurenge
SACCO strategy, there is the government cooperative policy document and Cooperative Act which are
to guide in the running and management of cooperative organizations including the SACCOs. All
these relevant documents have a direct bearing on the smooth running of the Umurenge SACCOs
therefore the leaders and promoters of the said institutions have to be well conversant with the
provisions of these different documents
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2.4.1. Reasons for Saving by the Communities
The Umurenge SACCO clients and the larger communities, as indicated earlier, do save in various
forms that include cash at their homes or physical produce amongst others in order to take care of
future needs. Their various needs may include the following;
a) Smoothening the household cash-flow; saving protects the households which mainly engage in
agriculture as the major source of livelihood/ income against the uneven income stream due to
seasonal fluctuations especially in the rural areas. When the members save, they can be able to
meet household needs especially during the periods of no cash inflows such as when there is a
major crop failure due to bad weather or during the dry seasons. Savings will therefore be
used during the time of shortage.
b) Accumulation of wealth; through saving the households are able to accumulate wealth (money)
to finance the acquisition of household assets and other items like domestic animal such as
cattle, goats and poultry.
c) Saving for future investment; Households may not be able to have sufficient capital to start an
Income Generating Activity (IGA). They may therefore commence saving small amounts of
money until the required capital is raised. The households then invest the funds thus increasing
the overall household income.
d) Means of insurance; Savings play the role of insurance against income losses, emergencies,
bad weather and sickness in the family that may occur in the future. Because of the
households’ inability to predict the occurrence of such risky events, funds are put aside so that
when the incidence happens, the household can meet their needs without any difficulties.
2.4.2. Organizational vision, mission, goals and objectives.
Every SACCO should have a clear statement of its vision, mission, goals and objectives in order for all
those involved in its management/ operations to have a clear sense of destiny, and for the
Administrative Committee to guide or direct management in that direction.
26
Vision: This is the ultimate aspiration of the Umurenge SACCO as an institution and its
members. The institutional vision expresses the dreams of the SACCO as an institution and its
members in the long run. An example of an SACCO vision may run as follows “ a rich and
prosperous membership served by a profitable and sustainable SACCO”
Mission Statement: this is a brief statement that indicates the purpose for which the Umurenge
SACCO was formed, it indicates the direction to which the SACCO is intended to move, and
the clientele it aims to serve. It seeks to answer the following questions:
1. What business is the SACCO in?
2. What business does the SACCO want to be in?
3. What do we intend to achieve?
4. Who are our clients and stakeholders
Goals: these are medium and long-term aspirations that the Umurenge SACCO wants to
achieve, based on its mission statement and driven by its vision.
Objectives are specific quantified targets that the SACCO has set to be achieved in a short-term
period, which will move it in the direction of achieving its goals.
2.4.3. SAVINGS FROM THE UMURENGE SACCO MEMBERS PERSPECTIVE
The Umurenge SACCO members, on a regular basis, will need to save to take care of their future
needs (cash requirements) as well as raise capital to invest in Income Generating Activities (IGAs).
These savings by the members can either be in the form of cash or physical products like crops or
domestic animals like cattle, goats and chicken. The decision to save either in cash or physical
products depends on the members’ perception of how secure and easily accessible their savings will be
at the Umurenge SACCO.
One of the main tasks of the Umurenge SACCOs is therefore to mobilize its members to move away
from saving in the form of physical products to cash savings. Mobilisation of cash savings from its
membership calls for amongst others the SACCO staff developing an understanding of the importance
of savings to the SACCO and the members cash-flow patterns as well as the factors that cause the
members of the general public to avoid saving with the formal institutions.
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Although there are different ways and methods of raising funds for SACCOs, savings are the most
efficient and effective way of raising these funds. In this unit we seek to know the necessities of
savings and understand what savings are in general and know how to generate the savings.
2.4.4. Advantages of SACCO
SACCOs and credit unions hold some real advantages for microfinance outreach and development. An
organise SACCO is:
a) an easy way of organizing a community to save and recycle savings in a given locality;
b) Since the nature of a SACCO is local, it mobilizes savings locally, within the community, and
then the profits are returned to members in the form of loans. The money stays and works
within the membership and the area.
This mutually achieved success helps to not only build a sense of ownership and pride in an area, it
creates a culture of saving and investing. .
2.5. RELATIONSHIP BETWEEN UMURENGE SACCO AND ITS CLIENT
2.5.1. The contribution of SACCO’s loan to the social economic status of clients
SACCO play an important role in lower groups through increasing their assets via establishing a credit
relationship, establishing an enterprise, accessing working capital, increasing income through business
expansion, meeting housing credit needs and increasing wealth through saving(Branch & Cora 1999).
Among many advantages, there are four primary strengths of SACCO’s institution. i.e saving
mobilization, services for lifetime asset growth, mixed outreach, and full services array of loan
products. What distinguished cooperatives from other non-bank financial entities involved in
SACCO’s is the ability of mass number mobilization of small, voluntary, saving account. These
deposits can then be invested in rural production, housing, small scale enterprises and small business
loans (Branch & cora, 1999)
Magil (1994) said that saving and Credit cooperative institutions play a great role in the provision of
loan products. Members financing needs determine their credit union products. The borrowers usually
access these loans for such purposes like housing construction, housing improvement, home purchase,
28
small manufacturing, transportation business, debt financing, emergency needs, education, agriculture,
cattle and chicken rising fish-harvesting, personal expenses, and electric appliance purchases. Credit
cooperative loan portfolios are widely diversified. Since cooperatives lend for a wide variety of
purposes, the portfolios risk of specializing in a single type of activity is reduced. People obtain credit
for several reasons, which may include lack of school fees for their children, starting a livelihood,
which show the need for credit.
2.5.2. Financial cooperatives and Poverty reduction
Financial cooperatives contribute to poverty in various way; financial cooperatives by proving saving
products help to reduce member’s vulnerabilities to shocks such as medical emergencies or
consumption smoothing. They encourage thrift for future investment, education and small business
enterprises.
Financial cooperatives also provides to their members access to credit for financing micro, small and
medium enterprises that generate additional employment and incomes and provide agriculture credits
that help small farmers increase production and improve income. The primary product offered by
financial cooperatives is low-cost saving facilities for the poor depositors. Empirical research of the
last decade has demonstrated that for saving services exists even among the poorest.
If formal means of saving are unavailable, poor people tend to use livestock, jewellers or informal
arrangement that typically have a low or negative interest rate.
For people living in poverty saving is critical to counterbalance the cyclicality of income. For
example, coffee farmer in Rwanda join financial cooperative to save money for period before the next
harvest and to reserve money for low yield years.
Financial cooperatives (SACCOs) provide access to credit for members who might not have typically
access to the saving commercial banks.
2.5.3. The contribution of SACCO in members’ income
SACCO plays an important role in lower income groups through increasing their asset via establishing
a credit relationship, establishing an enterprise, accessing working capital, increasing income through
business expansions, meeting housing credit needs and increasing wealth through savings(Branch &
Cora 1999). Among many advantages, there are four primary strengths of SACCO’s institution i.e.
Savings mobilisation, services for lifetime asset growth, mixed outreach, and full services array of
29
loan product. What distinguishes cooperatives from other non-Bank financial entities involved in
SACCO is the ability of masse number mobilisation of small, voluntary, savings account. These
deposits can then be invested in rural production, housing small scale enterprises and small business
loans (Branch & Cora, 1999).
Branch & Cora say that, SACCO today emphasizes scale and depth of outreach of financial services to
large numbers of the working poor through financially sustainable organisations. They offer a saving
first, self-sustainable approach to SACCO that has already successfully met the needs of millions of
lower incomes members around the world.
Saving and credit cooperative organisations encourage savings mobilisation especially for urban poor
women. It is known that savings are key to investment, without them, investments are very hard to be
realized.
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CHAPTER THREE
RESEARCH METHODOLOGY
3.1. Introduction
The purpose of this chapter is to describe the methodological approach and techniques that will be
used by the researcher. It includes the area of study and the study population. It also describes the
methods and techniques that will be used in choosing sample and data collection. It further describes
how data were collected, processed and finally analyzed to give the implication of findings.
3.2. Research design
According to Grinnell and Williams (1990), research design is the total plan used to aid answering
research questions. Who puts forward that as part of our plan, we decide what the research question
should be, what data is required to answer it, from which data is to be obtained and exactly what the
best way to gather the data.
3.3 The population
According to Bailey (1987, p. 69), population refers to the sum total of all units of analysis. The
population concerned by this research includes the managing team and the members of Umurenge
SACCO Rusororo. The size of the population under this study equals to 5233 members.
3.4 Source of data
Both primary and secondary source of data will be used. The primary data will be obtained from
SACCO’s member and staff using questionnaires and interviews. The secondary source of data will be
obtained by consulting existing literature on the problem under study.
3.4 Sampling
A sample is a small portion of the whole which can be used to study and draw conclusions about the
latter, given the nature and size of the population, it was not possible to make a study of the whole
population, and instead a sample will be selected to represent the whole population. A determination
of our sample size will not be taken at random, so it will be an outcome of the operations which will
be done with a determination of sample size from Alain Bouchard’s formula. This formula is applied
31
to be equivalent to a target population, means that a less than 1,000,000 people, a sample of 96 people
and taking into consideration a margin of error of 10%. As the universe of our survey is known and is
5233 people statistics got as members of UMURENGE SACCO RUSORORO; the researcher applied
this formula for a corrected sample size. The formula can be expressed in the following way:
According to, ALAIN BOUCHARD, (1990, p. 15) whenever a population of origin or reference is
less than one million individuals, we correspond this to a sample of 96 individuals and this gives us an
error of 10% and this will be used as a guideline in our study to get the exact number of individuals to
be asked. The formula to use is as follows:
N = Size of the population.
n= sample size of the population with an infinity of 96
nc = corrected sample
942.94965233
96*5233
nc
In this study a sample comprised 94 respondents.
3.5. Data collection techniques
They are tools used by the researcher to gather data from the respondents and other source that are
relevant to the study.
3.5.1. Questionnaire
According Gault, RH (1907), a questionnaire is a research instrument consisting of a series of
questions and other prompts for the purpose of gathering information from respondents. Although they
are often designed for statistical analysis of the responses, this is not always the case. The
questionnaire was invented by the Statistical Society of London in 1838. A copy of the instrument is
published in the Journal of the Statistical Society, Volume 1, Issue 1, 1838, pages 5–13.
32
Questionnaires have advantages over some other types of surveys in that they are cheap, do not require
as much effort from the questioner as verbal or telephone surveys, and often have standardized
answers that make it simple to compile data. However, such standardized answers may frustrate users.
Questionnaires are also sharply limited by the fact that respondents must be able to read the questions
and respond to them. Thus, for some demographic groups conducting a survey by questionnaire may
not be concrete.
According to Mannheim, JB and Rich (1995, p.447) have defined this word as a survey instrument
intended for use mailed of self-administrated surveys.
The questionnaires was designed and distributed to respondents so as to get information. It includes
open ended and close ended questions both administrated to respondents in order to get needed
information.
3.5.2 .Interview
Interview is the verbal conversation between two people with the objective of collecting relevant
information for the purpose of research.
According to Kerlinger, N. Fred( 1964:17) the interview is a conversation in which the researcher
tries to get information from interviewee.
According Rogers, Carl R. (1945), an interview is a conversation where questions are asked and
answers are given. In common parlance, the word "interview" refers to a one-on-one conversation
with one person acting in the role of the interviewer and the other in the role of the interviewee. The
interviewer asks questions, the interviewee responds, with participants taking turns talking. Interviews
usually involve a transfer of information from interviewee to interviewer, which is usually the primary
purpose of the interview, although information transfers can happen in both directions simultaneously.
One can contrast an interview which involves bi-directional communication with a one-way flow of
information, such as a speech or oration.
In this research the interview will be conducted with the Manager and Credit Agent/Officer of
UMURENGE SACCO RUSORORO in order to provide a framework of key point on the topic
around which investigative discussion was built.
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3.5.3. Documentary techniques
According to BAILLEY (1987, p. 266), analysis of documentation is a major aspect in data collection
which concern written records in order to relate the study in many different materials such as books,
Annual reports, dissertations and electronic references.
3.6. Data processing and assessment
This is defined as the link between data collection, processing and assessment. It is all about
transforming the finding collected from the field. It can also be referred as the process of inspecting,
cleaning, transforming, and modeling data with the goal of highlighting useful information, suggesting
conclusions and supporting decision making.
3.6.1. Data Processing
Data processing is the link between data collection and data analysis. The data collected will be
transforming into meaningful information for easy interpretation and understanding, therefore data
processing involved editing; tabulation and finally analysis will be based on data processed.
3.6.2. Editing
This involves checking all questions so as to detect errors and eliminate unnecessary information.
Effort made by the researcher to reduce errors that could appear during the course of research thus
creating better ground for coding and tabulation.
3.6.3. Coding
After editing a questionnaires should be coded, according to Gilbert A. Churchill, (1992) coding is the
technical procedure by which data are categorized, it involves specifying the alternative categories or
classes into which the responses are to be placed and assigning code number to the classes into which
the responses are to be placed and assigning code number to the classes.
3.6.4. Tabulation
Tables will be used to explain more of given subject, after editing, and coding, tabulation is the next
step where data collected will be putted together into some kind of tables . Each table will follow by
the explanation about the nature and relationship between variables indicated in the table in order to
present understandable data.
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3.7. Data analysis techniques
After editing, coding and tabulation, the researcher proceeds to analyze the data collected from
UMURENGE SACCO RUSORORO and the entry and analysis of data will be done using SPSS
3.8. Description of UMURENGE SACCO RUSORORO
3.8.1. Location
UMURENGE SACCO RUSORORO located in GASABO district, Rusororo sector in Kigali city
where it is licensed microfinance and commercial bank. It was founded in 2009 but it was officially
launched on 07 December. UMURENGE SACCO RUSORORO started with 132 members but now
we found 5233 members.
3.8.2. Mission
The mission is to promoting the members in savings and creation of business opportunities by
developing the culture of business innovation as key element for cooperative sustainability that leads
to alleviation of unemployment among SACCO’s members.
3.8.3. Vision
The vision of this cooperative bank is committed to contribute in the social economic growth of the
shareholders and partners as well as contributing in poverty reduction process in the Rwandan
population. There by transform the lives of Rwandan families.
3.8.4. Objectives
Promoting the culture of savings
Financing their clients
Improving the capacity of their clients and Rusororo population economic socio status.
3.8.5. Requirements to be a member of Umurenge SACCO Rusororo
In order to open and maintain a personal Current Account with Umurenge SACCO Rusororo one
needs to fulfill the following criteria:
To be people of Rusororo sector as residence
35
Submit a photocopy of identity card
Submit a passport photo
Complete the application form to open an account with Umurenge SACCO Rusororo
Capacity to have a share of 15,000 RWF
Provide a sample of your signature and start enjoying your current account.
3.8.6. Criteria for acquiring credit/loans from Umurenge SACCO Rusororo
To be a member of the cooperative
Action plan of your project
To agree to pay the digressive interest rate of 2.5% fixed by the cooperative;
To agree to follow the payment program fixed by SACCO in accordance with the client. This
program consists of the repayment of the loans and its interest which can be weekly or often
monthly;
The following minimum documents are required while applying for a loan in a SACCO:
Loan Application letter
Copy of the ID card and if married the copy of ID of the wife or husband;
Detailed project form fully filled indicating the cost and benefit out of the project, balance
sheet etc.
Note that the form will also indicate the personal incomes and expenses in ordinary life;
Collateral certificate depending on the size of the loan.
3.8.7. Kinds of loans offered by Umurenge SACCO Rusororo
Umurenge SACCO Rusororo offer different kinds for purpose of increasing socio economic status of
their members, those kinds of loans are:
Agriculture, breeding loan
Commercial loans
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Housing loans
Consumption loan
3.9. Organization structure of UMURENGE SACCO RUSORORO
Administrative Assembly
Manager
Credit officer Accountant
Cashier
General Assembly
Audit comitie
Credit comitie
Other employees
Figure 2. Organization structure of UMURENGE SACCO RUSORORO.
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CHAPTER FOUR
RESULTS AND DISCUSSION
4.1. Introduction
The purpose of carrying out this research is to identify the role of Umurenge SACCO loans in socio-
economic development of clients using Umurenge SACCO Rusororo as case study. This chapter deals
with data presentation, analysis and interpretation of data collected. The findings of study are based on
both primary and secondary data analysis and the researcher analyses questionnaire using SPSS
program, then expressed results in the form of percentage and table presentation.
4.2. Profile of respondents
4.2.1. Gender of respondents
The finding in the table below shows the gender of respondents.
Table 4.1. Gender of respondents
Frequency Percent Cumulative Percent
Valid Female 62 66.0 66.0
Male 32 34.0 100.0
Total 94 100.0
Source: Primary data, 2016
From the table above the researcher found that 66% of respondents are Female while 34% of
respondents are Male. This is a result of mission of Umurenge SACCO Rusororo which is promoting
rural population specially women entrepreneurs through creation of business opportunities and by
developing the culture of business innovation as a key element for the cooperatives sustainability,
which leads to poverty alleviation among women.
4.2.2. Age of respondents
The table below shows the age of respondents. In fact, somebody’s age affects his or her ability to
work hard, to save and to consume. In other words, our age allows for productivity.
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Table 4.2. Age of respondents
Frequency Percent Cumulative Percent
Valid above 55 11 11.7 11.7
between 21 and 35 27 28.7 40.4
between 36and 55 47 50 90.4
under 21 9 9.6 100.0
Total 94 100.0
Source: Primary data, 2016
The table above show that 9.6% of respondents represent the age of customers who are under 21years,
28.7% of respondents are between 21 and 35 years, 50% of respondents are between 36 and 55 years
and finally 11.7% of respondents are over 56 years. This implies that the majority of SACCO
members are adult people who own families and few members. They are the youth that can plan for
the future. Reasons are clear as these people are active and working hard for their family members and
their lives. Therefore they can save for the future and can request for loans from Umurenge SACCO
Rusororo to invest in new or existing projects.
4.2.3. Education of Respondents
Table 4.3. Education of Respondents
Frequency Percent Cumulative Percent
Valid Illiterate 9 9.6 9.6
Primary 30 31.9 41.5
Secondary 40 42.6 84.0
University 15 16.0 100.0
Total 94 100.0
Source: Primary data, 2016
The research revealed that majority of clients completed secondary level of education as indicated by
42.6%, followed by primary level represented by 31.9%, university level represented by 16% and
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illiterate represented by 9.6%. This show that a large number of Umurenge Sacco Rusororo members
educational level include secondary and primary, thus indicate that those members do not have chance
continue the studies, for that cause they try different activities with starting on lower capital.
4.2.4. Occupation of respondents
A person’s socio-economic status is composed of the elements such as income, occupation, education
level and category of levels; the result that follows shows occupation of respondents.
Table 4.4. Occupation of respondents
Frequency Percent Cumulative Percent
Valid Artisan 10 10.6 10.6
Business man 31 33.0 43.6
Civil servant 7 7.4 51.1
Self-employed 46 48.9 100.0
Total 94 100.0
Source: Primary data, 2016
As shown by the table above the researcher found that 48.9% of respondents deal with self-
employment activities followed by 33% who are businessmen while 10.6% are artisans and 7.4% of
respondents are civil servants. This indicates that Umurenge SACCO Rusororo has been approached
by people from various sectors but the research revealed that the self-employed had the highest
percentage due to the that fact that the self-employed may need a lot of money to expand their
business or create the new ones in order to increase their income and improve their socio-economic
situation.
4.3. Socio-economic status of respondents
4.3.1. Beneficiaries of Umurenge SACCO Rusororo loans
Here the intervention of this question was to find out if the respondents got the loans from Umurenge
SACCO Rusororo.
40
Table 4.5. Beneficiaries of SACCO Rusororo loans
Frequency Percent
Cumulative
Percent
Valid No 24 25.5 25.5
Yes 70 74.5 100.0
Total 94 100.0
Source: Primary data, 2016
Findings from the table above show that 74.5% of respondents have got loan from Umurenge SACCO
Rusororo while 25.5% of respondents did not acquire any loans due to different causes. Some of that
causes include the client who do not have good action plan for their project, without have proper land
for guarantee and other have Sacco’s account without account movement.
4.3.2. Types of activities for loans granted to the clients
The study has identified the type of activities for loans offered to clients by Umurenge SACCO
Rusororo. The results are presented in the table below.
Table 4.6. Types of activities for loans granted to the clients
Frequency Percent Cumulative Percent
Valid Agriculture, breeding 34 36.2 36.2
Children scholarships 6 6.4 42.6
Consumption 14 14.9 57.4
Housing 9 9.6 67.0
Medical Insurance 17 18.1 85.1
small medium 14 14.9 100.0
Total 94 100.0
Source: Primary data, 2016
The table above indicates that the most activities done by the client of Umurenge SACCO Rusororo
with loans offered. That represented by 36.2% agriculture and breeding, 18.1% medical insurance
41
(Mutuelle de santé), consumption and Small and Medium business had the same indication of 14.9%
and housing 9.6% finally 6.4% children scholarship. This means that agriculture and breeding
activities are most preferable than other activities and this implies that most of time Umurenge
SACCO Rusororo finance agriculture and breeding including beekeeping, poultry, agriculture project
while Medical Insurance activities are the second to be preferable and Small and Medium business,
consumption on the third activities and fourth activities is housing, finally the last activities children
scholarships.
4.4. Socio-economic status of clients after receiving the loans
4.4.1. Clients’ income before joining Umurenge SACCO Rusororo
Income is a composite of one’s social and economic status. The results that follow show incomes of
respondents before joining Umurenge SACCO Rusororo
Table 4.7. Clients’ income before joining Umurenge SACCO Rusororo
Frequency Percent Cumulative Percent
Valid 10,000-20,000 19 20.2 20.2
20,001-50,000 34 36.2 56.4
50,001-80,000 14 14.9 71.3
80,001-100,000 12 12.8 84.0
less than 10,000 6 6.4 90.4
over 100,000 9 9.6 100.0
Total 94 100.0
Source: Primary data, 2016
From the table above 20.2 % of respondents earn monthly income between 10,000RWF and
20,000RWF before getting loan, 36.2% of respondents earn a monthly incomes from 20,001 to 50,000,
14.9% of respondents earn a monthly incomes from 50,001 to 80,000, 12.8% of respondents earn a
monthly incomes from 80,001 to 100, 000, 9.6% of respondents earn over 100,000RWF and finally
6.4% less than 10,000.
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4.4.2. Clients’ incomes after joining Umurenge SACCO Rusororo
Result on monthly incomes of clients after received credits from Umurenge SACCO Rusororo are
indicated below.
Table 4.8. Clients’ incomes after joining Umurenge SACCO Rusororo
Frequency Percent Cumulative Percent
Valid 10,000-20,000 9 9.6 9.6
20,001-50,000 24 25.5 35.1
50,001-80,000 34 36.2 71.3
80,001-100,000 13 13.8 85.1
less than 10,000 4 4.3 89.4
over 100,000 10 10.6 100.0
Total 94 100.0
Source: Primary data, 2016
From the table above 9.6% of respondents earn monthly income between 10,000RWF and
20,000RWF, 25.5% of respondents earn a monthly incomes from 20,001 to 50,000, 36.2% of
respondents earn a monthly incomes from 50,001 to 80,000, 13.8% of respondents earn a monthly
incomes from 80,001 to 100,000,10.6% of respondents earn over 100,000RWF and finally4.3 of
respondent earn less than 10,000RWF. The result from the table above show that after receiving loans
from Umurenge SACCO Rusororo there has been an improvement in clients’ income and their
category grow people should therefore join SACCO so as to improve their living standards.
4.4.3. Clients’ savings before joining Umurenge SACCO Rusororo
The savings of clients before they join Umurenge SACCO Rusororo are shown in table below.
43
Table 4.9. Clients’ savings before joining Umurenge SACCO Rusororo
Frequency Percent Cumulative Percent
Valid 100,000-200,000 14 14.9 14.9
200,001-300,000 11 11.7 26.6
300,001-400,000 9 9.6 36.2
400,001-500,000 7 7.4 43.6
500,001-600,000 6 6.4 50.0
600,001-700,000 5 5.3 55.3
less than 100,000 38 40.4 95.7
over 700,000 4 4.3 100.0
Total 94 100.0
Source: Primary data, 2016
Result from table above show that before Umurenge SACCO Rusororo 14.9% of respondents save
between 100,000RWF and 200,000, 11.7% of respondents save between 200,001RWF and 300,000,
9.6% of respondents save between 300,001RWF and 400,000, 7.4% of respondents save between
400,001RWF and 500,000, 6.4% of respondents save between 500,001RWF and 600,000, 5.3% of
respondents save between 600,001RWF and 700,000, 40.4% of respondents save less than 100,000
finally 4.3% of respondents save over than 700,000.
4.4.4. Saving of clients after joining Umurenge SACCO Rusororo
The study has determined the saving of client joined Umurenge SACCO Rusororo. Results are
completed in table below.
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Table 4.10. Saving of clients after joining Umurenge SACCO Rusororo
Frequency Percent Cumulative Percent
Valid 100,000-200,000 14 14.9 14.9
200,001-300,000 17 18.1 33.0
300,001-400,000 16 17.0 50.0
400,001-500,000 13 13.8 63.8
500,001-600,000 11 11.7 75.5
600,001-700,000 7 7.4 83.0
less than 100,000 11 11.7 94.7
over 700,000 5 5.3 100.0
Total 94 100.0
Source: Primary data, 2016
Result from table above show that before Umurenge SACCO Rusororo 14.9% of respondents save
between 100,000RWF and 200,000, 18.1% of respondents save between 200,001RWF and 300,000,
17.0% of respondents save between 300,001RWF and 400,000, 13.8% of respondents save between
400,001RWF and 500,000, 11.7% of respondents save between 500,001RWF and 600,000, 7.4% of
respondents save between 600,001RWF and 700,000, 11.7% of respondents save less than 100,000
finally 5.3% of respondents save over than 700,000. As shown in table above SACCO’s clients
Savings increases clients, means socio economic status increase.
4.4.5. Socio economic status (SES) improvement due to loan granted by Umurenge
SACCO Rusororo
The situation on socio economic status improvements by clients of Umurenge SACCO Rusororo is
detailed in table below with categories of Rwandan people.
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Table 4.11. Socio economic status (SES) improvement due to loan granted by Umurenge SACCO
Rusororo
Frequency Percent Cumulative Percent
Valid No change of Category 9 9.6 9.6
The Category one to the Category two 26 27.7 37.2
The Category three to the Category four 18 19.1 56.4
The Category two to the Category three 41 43.6 100.0
Total 94 100.0
Source: Primary data, 2016
The table above show that 9.6% of the respondents improve their life due to income generated from
Umurenge SACCO Rusororo but not change the category of socio economic status, 27.7% of the
respondents improve form category one to category two, 19.1% of the respondents improve form
category two to category three, 43.6% of the respondents improve form category two to category
three.
Based on the foregoing, we can ensure that there has been a remarkable increase in the level of socio
economic status in improvement and change of categories because of existences of loans gotten in
SACCO Rusororo.
4.4.6. Acquisition of assets by clients of Umurenge SACCO Rusororo
The research assumed that client who got the SACCO Loans would improve their socio economic
status by increasing the value of owned assets.
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Table 4.12. Acquisition of assets by clients of Umurenge SACCO Rusororo
Frequency Percent Cumulative Percent
Valid Bicycle 19 20.2 20.2
House equipment 27 28.7 48.9
Motorcycle 29 30.9 79.8
Nothing 4 4.3 84.0
Radio 9 9.6 93.6
Vehicle 6 6.4 100.0
Total 94 100.0
Source: Primary data, 2016
This table shows that 20.2% of respondents purchased bicycle, 28.7% of respondents purchased house
equipment, 30.9% of respondents purchased motorcycle, 9.6% of respondents purchased Radio, 6.4%
purchased vehicle due to loans granted by Umurenge SACCO Rusororo, but 6.4% didn’t use the loan
in real interest. This implies those loans got from SACCO have contributed in the improvement of
clients’ socio economic status.
4.4.7. Acquisition of domestic animals by clients
The table below shows acquisition of domestic animals by clients due granted loan.
47
Table 4.13. Acquisition of domestic animals by clients
Frequency Percent Cumulative Percent
Valid Chickens 39 41.5 41.5
Cows 6 6.4 47.9
Goats 9 9.6 57.4
Nothing 25 26.6 84.0
Other 15 16.0 100.0
Total 94 100.0
Source: Primary data, 2016
Table above shows that 41.5% of respondents purchase chicken, 6.4% of respondents purchase Cow,
9.6% of respondents’ purchase Goats, 26.6% of respondents not interest in purchase of domestic
animals finally 16.0 of respondents purchase other domestics animals apart of mentioned above.
4.4.8. Education of clients’ children before getting loans
Table below present clients’ capacity of paying school fees to their children before getting loans
Table 4.14. Education of clients’ children before getting loans
Frequency Percent Cumulative Percent
Valid Nursery 11 11.7 11.7
Primary 57 60.6 72.3
Secondary 19 20.2 92.6
University 7 7.4 100.0
Total 94 100.0
Source: Primary data, 2016
Before joining Umurenge SACCO Rusororo 11.7% of respondents educate their children in Nursery
level, 60.6% of respondents attended Primary level, 20% of respondents educate their children
secondary level and 7.4% attended up to university level.
48
4.4.9. Education of clients’ children after getting loans
Table below present clients’ capacity of paying school fees to their children after getting loans
Table 4.15. Education of clients’ children after getting loans
Frequency Percent Cumulative Percent
Valid Nursery 16 17.0 17.0
Primary 49 52.1 69.1
Secondary 21 22.3 91.5
University 8 8.5 100.0
Total 94 100.0
Source: Primary data, 2016
After getting loans from Umurenge SACCO Rusororo educational level of children is improved as it is
shown in the table above the number of children educated on level of nursery from 11.7% before
getting loans to 17.0% after getting loans, from 20% to 22.3% on secondary level and 7.4 %to 8.5% on
university level. As shown in tables above loans granted from SACCO Rusororo contributed to
improvement of education of children of clients.
4.5. Contribution of loan granted to poverty reduction
Table 4.16. Contribution of loan granted to poverty reduction
Frequency Percent Cumulative Percent
Valid Employments 18 19.1 19.1
satisfy needs for household 48 51.1 70.2
Spirit of entrepreneurship 28 29.8 100.0
Total 94 100.0
Source: Primary data, 2016
49
Table above indicates that 51.1% of respondents prove that loans granted contribute to the
development of beneficiaries and community through satisfying the daily needs of households while
19.1% of respondents say that loans contribute much to the community by providing employment to
the customer SACCO Rusororo and 29.8% of respondents have Spirit of entrepreneurship cause of
loan.
4.6. Importance of SACCO’s loan to clients
SACCO’s has various importance to clients the table below presents some of them
Table 4.17. Importance of SACCO’s loan to clients
Frequency Percent Cumulative Percent
Valid Economic development 32 34.0 34.0
social development 62 66.0 100.0
Total 94 100.0
Source: Primary data, 2016
Table above shows that 34.0% of respondents prove that SACCO Rusororo’s loan helped them
improving economic development situation while 66.0% of respondents prove that SACCO’s loan
improve their social situation. This indicates that the existence of SACCO’s loan has a significant
importance on the people’s economic wellbeing as the analysis of data has shown.
50
4.7. Relationships between Umurenge SACCO Rusororo services and clients socio economic
status
Table 4.18. Relationships between SACCO Services and client’s economic status
Services offered
by SACCO Socio economic
Status
Spearman's rho Services offered by
SACCO
Correlation
Coefficient 1.000 .392**
Sig. (2-tailed) . .089
N 94 94
Socio economic Status Correlation
Coefficient .392** 1.000
Sig. (2-tailed) .089 .
N 94 94
**. Correlation is significant at the 0.01 level (2-tailed).
Source: generated by SPSS, 2016
Legend:
Services offered by Umurenge SACCO (Independent variables)
Socio-economic Status (Dependent variables)
[-1.00-0.00]: Negative Correlation
[0.00-0.25]: Positive and very Low Correlation
[0.25-0.50]: Positive and Low Correlation
[0.50-0.75]: Positive and High Correlation
[0.75-1.00]: Positive and very High Correlation
51
The variation of Spearman coefficient is between -1 and 1. Spearman correlation coefficient has
significance when it is equal or greater than 0.089 or 8.9%
According the research, the correlation indicates that there is a positive and low relationship between
Services offered by SACCO and socio economic status which is represented 39.2%. This is the
contribution of Umurenge SACCO services on socio economic development of clients.
The respondents were asked whether participation in SACCO programs has benefited them. Majority
of respondents felt that they had attained a real change in their lives as compared to themselves before
they joined Umurenge SACCO Rusororo and got loans. Many felt that they can educate their children
and pay for themselves, satisfy needs for their households. On a business level, respondents left that
they had managed to acquire and hence improve their businesses or start new businesses. The other
benefits that the SACCOS have brought to clients include: assist clients to buy or improve means of
transport (bicycle, motorcycle, car,…), acquire domestic animals (cow, chicken, goat,…), improve
Socio economic status (from category one to category two, from category two to category three,…)
increase monthly income and some said that helped clients to improve their social well-being and
shifted from low social economic status to the improved class or stage. As shown big number of
clients improve in social development than Economic development.
52
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1. Introduction
This chapter presents the summary of the major findings; conclusion and recommendation provided by
the research about the role of Umurenge Sacco loans in socio-economic development of clients.
5.2. Summary of major finding
This study was carried out in Rusororo Umurenge Sacco in order to find the role of umurenge Sacco
loans in socio-economic development of clients.
5.2.1. Finding on type of activities granted by Umurenge Sacco
The most activities granted by Rusororo Umurenge Sacco; agriculture and breeding represented by
36.2%, medical insurance 18.1%, both Small and Medium business and Consumption 14.9% and
housing 9.6% then Children scholarships 6.4%. This means that in Rusororo sector agriculture and
breeding on the first place and medical insurance are the most preferable than other activities and this
implies that most of the times Rusororo Umurenge Sacco finance agriculture and breeding in purpose
of increasing the socio economic status while medical insurance are the second to be preferable in
increasing of good health and then the socio activities; Small and Medium business, Consumption,
housing and Children scholarships.
5.2.2. Finding on analysis of improvement in Category of socio economic
The result shows that 43.6% of respondent increase socio economic from the Category two to the
Category three category, 27.7% from the Category one to the Category two and 19.1% from the
Category three to the Category four thus means from loan delivery by Rusororo Umurenge Sacco
change socio economic development. On other hand 9.6% No change of Category means the small
number do not use loan on proper activities granted by Umurenge Sacco.
5.2.3. Finding on contribution granted loans with important to Rusororo Umurenge clients
As shown 34% of respondent prove that Rusororo Umurenge Sacco’s loan helped them improving
their economic development situation while 66% of respondent prove that Sacco’s loan improve in
social development situation. This indicates that the existence of Sacco has a significant importance
the people’s social development wellbeing as the analysis of data has showed.
53
5.3. Conclusion
Based on findings the researcher has been able to achieve the objectives of the study and concluded
that Umurenge Sacco’s loan has impacted socio economic situation of its members. The study has
showed that umurenge Sacco’s loan have a positive contribution on socio economic situation of
members by helping them in increase they income, savings, asset owned. Improve level of education
of children, create new business activities or expend existing ones, payment of medical insurance,
improve houses and build new ones, facilitate families’ health (consumption).
The results show that beneficiaries had increased their monthly incomes after getting loans and create
the small and medium business for their wealth growth. The credit getting from SACCO contributes
on saving of beneficiaries from 10,000 to 700,000 and above Rwandan francs toward economic
development.
Based on the foregoing, we can ensure that there has been a remarkable increase in the level of
investment in real estate because of existence of loans gotten in SACCO surveyed had purchased
house equipment, motorcycles and vehicles.
5.4. Recommendations
5.4.1. To Rusororo Umurenge Sacco
It is advisable to Sacco to offer the valuable amount to beneficiaries and reduce the interest rate
in order to facilitate its member’s as customer in general to meet their repayments schedule so
as to encourage prompt loan repayment.
Sacco should assist the owners of Small and Medium business activities in getting loans. It
should simplify the procedures associated with loan acquisition. Since the study revealed that
beneficiaries’ business are the major sources of employment to majority of Rwandan
population.
Sacco should establish the modern or electronic payment system in favor of its beneficiaries.
5.4.2. To the future researcher
Due to the shortage of time, I recommended the other researcher who will be interested to conduct a
research on Umurenge Sacco loans in socio-economic development and Savings and Credits
54
Cooperatives to go deeper and find more regarding the improvement of those cooperatives and socio
development.
55
REFERENCES
A.BOOK
ABEBE Tiruneh, (2006), Impact of microfinance on poverty Reduction in Ethiopia Addis Ababa
University Addis Ababa Ethiopia.
BAILEY .T. (2001), Applying international best practices to South African’s SACCO’s. Published
dissertation, South Africa: De Mont Fort University.
FRED AHIMBISIBWE, (2007), The effect of Saving and Credit Cooperatives (SACCOS) on
members’ Saving culture.
Gilbert A. Churchill Jr Basic, (2007), Marketing research, 2nd
edition, USA, the Dryden press
Kenneth.D. Bailey, (1987). Methods of Social Research. 3rd edition. New York, Macmillan publishing
co,Inc.
Lubasi Vincent (1998), The role of members in the development of cooperatives with different types
of cooperatives. Kigali Centre IWACU.
Gault, RH (1907). "A history of the questionnaire method of research in psychology", Research in
Psychology 14 (3).
Gary Cokins(2009). “Performance management: integrating strategy execution, methodologies, risk,
and analytics.” Published 2009 by Wiley in Hoboken, N.J
B.REPORT AND JOURNAL
Alliance for Financial Inclusion, 2014(July),
Global Journal of Current Research Vol.2No.1.2013
International Journal of Technology and Business Management 29th
sept 2014. Vol 29 N0.1@2012-
2014 JITBM &art. All right reserved
MINALOC(2006). “UMURENGE SACCOS STRATEGY, Kigali-Rwanda
MINALOC (2007), Economic development & poverty reduction strategy (2008–2012),Kigali-
Rwanda.
RCA, (2011), Training programme on management of cooperatives, Kigali Rwanda
RCA (2012), ORGANISATION AND MANAGEMENT OF THE UMURENGE SACCOS, Kigali-
Rwanda
RCA, (2016), module six: internal controls for the Umurenge Sacco, Kigali Rwanda
56
C. ELECTRONIC RESOURCES
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Rogers, Carl R. (1945). Frontier Thinking in Guidance. University of California: Science research
associates. pp. 105–112. On https://en.wikipedia.org/wiki/Interview accessed 13/04/2016
http://www.minaloc.gov.rw/spip.php?rubrique12&var_recherche=sector The Republic of Rwanda
after Territorial Reform
http://www.rca.gov.rw/IMG/pdf/Umurenge_SACCOs_strategy_February09.pdf retrieved on
14/05/2016
http://www.minecofin.gov.rw/fileadmin/templates/documents/NDPR/EDPRS_2.pdf on 14/5/2016
Signoriello, Vincent J. (1991), Commercial Loan Practices and Operations, ISBN 978-1-55520-134-0
on https://en.wikipedia.org/wiki/Loan retrieved on 14/03/2016
John Eatwell, Murray Milgate, and Peter Newman, [1987] 1989. Social Economics: The New
Palgrave, p. xii. Topic-preview links, pp. v-vi. On https://en.wikipedia.org/wiki/Socioeconomics
retrieved on 14/03/2015
http://www.businessdictionary.com/definition/development.html retrieved on 14/03/2016
https://en.wikipedia.org/wiki/Socioeconomic_development retrieved on 14/03/2016
Random House Unabridged Dictionary. Random House, 2006 on https://en.wikipedia.org/wiki/Saving
retrieved on 2/04/2016
Monzon, J. L. & Chaves, R. (2008) "The European Social Economy: Concept and Dimensions of the
Third Sector", Annals of Public and Cooperative Economics, 79(3/4): 549-577.on
https://en.wikipedia.org/wiki/Cooperative retrieved on 2/04/2015
http://www.rca.gov.rw/IMG/pdf/RCA_Staff_Training_-_Participanats_Notes_-
_Revised_11th_March_2011.pdf retrieved on 18/05/2016
https://www.ncba.coop/7-cooperative-principles retrieved on 2/04/2016
http://www.rca.gov.rw/spip.php?article16 retrieved on 3004/2016
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Gault, RH (1907). "A history of the questionnaire method of research in psychology". Research in
Psychology 14 (3): 366–383.doi:10.1080/08919402.1907.10532551. On
https://en.wikipedia.org/wiki/Questionnaire retrieved on 13/04/2016
Rogers, Carl R. (1945). Frontier Thinking in Guidance. University of California: Science research
associates. pp. 105–112. On https://en.wikipedia.org/wiki/Interview retrieved on13/04/2016
58
APPENDICES
1. QUESTIONNAIRE
QUESTIONNAIRE
I am a student at University Independent of Lay Adventist of Kigali (UNILAK) in the faculty of
Economics Science and Management Department of Finance am conducting a research project
entitled” the role of umurenge sacco loans in socio-economic development of clients. Case study:
rusororo umurenge sacco . Period of 2013-2015 This questionnaire will intend to help me achieve the
research objectives and I will be grateful if you answer this questionnaire. The information provided
will be kept confidential and will purposely for carrying out this research.
PART. 1. PROFILE OF RESPONDENT /UMWIRONDORO W’USUBIZA
1. Gender /IGITSINA
Male (gabo)
Female( gore)
2. Marital status/ Iranga mimerere
Single/Ingaragu…………………….
Married/uwubatse………………
Divorced/watandukanye n’uwobashakanye.
Widow/umupfakazi
3 .Age /Imyaka
under 21/ munsi ya 21
Between 21 to 35/ hagati ya 21 n1 35
Between 36 to 55/hagati ya36 na 55
59
Above55/ hejuru ya 55
4.Level of education/Amashuli yize
Vocational education/ amashuri yimyuga
Primary/ abanza
Secondary/ayisumbuye
University /kaminuza
Illiterate/ ntiyize
5. Occupation/umurimo akora
Business man/woman/umucuruzi
Artisan…/umunyabukorikori
Private employees/ uwikorera
Civil servant/ ukorera leta
1. Have you beneficiated a loan of Umurenge SACCO Rusororo? Wigeze uhabwa inguzanyo y’
Umurenge SACCO Rusororo?
A. Yes/yego
B .No/oya
60
2. If yes, What type of activities did you do with the received loan ?/niba ari yego, N’ikihe gikorwa
iyo nguzanyo yakugejejeho?
Type of activities
consumption / kwikenura
Small and Medium business /ubucuruzi buto
n’ubuciriritse?
Housing / ubwubatsi?
Agriculture, breeding /ubuhinzi n’ubworozi
Medical Insurance /kwishyura ubwisungane mu kwivuza
[mutuelle de santé]
Children scholarships /kwishyura amashuli y’abana
3. What is your monthly income before and after joining Umurenge SACCO
Rusororo?/winjizaga amafaranga angahe kukwezi mbere na nyuma y’ukorana Umurenge
SACCO Rusororo?
Income RWF Before/mbere After/nyuma
Less than/munsi ya 10,000
10,000 – 20,000
20,001 – 50,000
50,001 – 80,000
80,001 – 100,000
100,001 – over
61
4. How much did you save before and after joining Umurenge SACCO Rusororo?/ wizigamaga
amafanga angahe mbere nanyuma yuko ukorana na Umurenge SACCO Rusororo?
Saved (Rwf) Before/mbere After/nyuma
Less than/munsi ya 100,000
100,001 – 200,000
200,001 – 300,000
300,001 – 400,000
400,001 – 500,000
500,001 – 600,000
600,001 – 700,000
Over 700,000
5. Have you improved your socioeconomic status (SES) due to the income from umurenge Sacco’s
Loan?/ Wazamutse mu cyiciro cy’ubudehe bivuye ku musaruro w’inguzanyo wafashe mu
murenge Sacco?
From the level one to the level two/ Kuva mu cyiciro cya mbere ujya mu cya kabiri
From the level two to the level three/ Kuva mu cyiciro cya kabiri ujya mu cya gatatu
From the level three to the level four/Kuva mu cyiciro cya gatatu ujya mu kane
No change of level /yagumye mu cyiciro yarimo
62
6. What asset have you bought due to the loan granted from Umurenge SACCO
Rusororo?Nibihe bikoresho waguze biturutse munguzanyo wahawe n’ Umurenge SACCO
Rusororo?
Asset /Ibikoresho Before/mbere After/nyuma
Radio /Radiyo
House equipments/Ibikoresho
byo munzu
Bicycle /Igare
Motorcycle/Moto
Vehicle/Imodoka
Nothing/ntanakimwe
7. What do you think is the importance of Credit granted by Umurenge SACCO Rusororo to
your poverty reduction ? Inguzanyo yakumariye iki mubijyanjye no kugabanya ubukene?
Contribution/akamaro Response/igisubizo
Employment/ akazi
Satisf needs forhouseholds/ kwihaza
mubikenewe murugo
Spirit of entrepreneurship/umwete wo
kwihangira imirimo
8. Which domestic animal have you bought due to the income from the loans? Nayahe matungo
yo murugo waguze ubikesha inguzanyo?
63
Domestic animals Response/igisubizo
Cows/ Inka
Goats/Ihene
Chickens/Inkoko
Other/andi matungo
Nothing bought /nacyo nwaguze
9. At Which level have you educated your children before and after your collaboration with
Umurenge SACCO Rusororo?/ Wabashije kwishyurira abana bawe ishuri kugeza he mbere na
nyuma y,uko ukorana na Umurenge SACCO Rusororo?
Education level Before /mbere After /nyuma
Nursery/ ikiburamwaka
Primary/amashuri abanza
Secondary/ayisumbuye
University/kaminuza
10. What type of development do you think the SACCO loans have helped you as beneficiaries to
achieve? / ni ubuhe bwoko bw’iterambere ubona inguzanyo itangwa na SACCO igeza
kubayihabwa?
Type of development Response/igisubizo
Social development/ ku mibereho myiza n’iterambere
Economic development/ k’ubukungu n’ iterambere
Thank you for your valuable time in answering to my questionnaire.
2. TO WHOM IT MAY CONCERN
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