The National Bank of Rwanda in collaboration with Savings Bank Foundation for International Cooperation (SBFIC) organized a one day workshop on microfinance law and regulation in Rwanda. The workshop was held at Lapalisse Nyandungu Hotel on 27th January 2009, the function was attended by more than 200 heads of Microfinance institutions and BNR staff in charge of microfinance inspection.
In his opening remarks, the Governor of the National Bank of Rwanda, Mr. François KANIMBA, urged microfinance institutions and saving cooperatives to respect the law and regulations governing microfinance business in the country in order to strengthen the sector. He also commended the role of microfinance institutions in contributing to the long term development.
The central bank is concerned about MFIs functioning especially in respecting the regulatory framework. Such workshop is a forum allowing making sure that heads microfinance institutions are sufficiently informed about the law and regulation governing the sector, noted the Governor. A hand book containing the law n° 04/2008 establishing the organization of microfinance activities and the regulation n° 02/2009 on the organization of microfinance activity was provided all workshop participants. A presentation on the legal instruments was done in addition to the exchange of views by participants.
Speaking on the role of MFI and SACCO for the country’s development, the Governor emphasized that these kind of financial institutions were more resistant to the global financial crisis. He applauded them for their leading contribution to the agriculture financing. In addition, he said that COOPECs and MFIs loans and credits going to the agriculture sector are more important than those coming from the banking sector. He urged them to go forward by taking advantage of various government initiatives promoting agriculture financing.
The Governor also urged already existing MFIs and COOPECs to consider Umurenge SACCO not as a competitor but a partner in the move to bring financial services close to the population.
However, he encouraged small MFIs and COOPECs to merge with Umurenge SACCO for a better and efficient service delivery.
The Governor warned MFIs and SACCOs against embezzlement and bad loans in which staffs of these institutions have been implicated. These malpractices can undermine the progress of the sector and even lead to their bankruptcy, the Governor said.
Closing his opening remarks, the Governor invited heads of microfinance institutions to take advantage of the workshop and interact with other stakeholders on the law and regulation governing their sector. As the workshop was held at the beginning of the year, the Governor also urged them to come up with a common strategy to galvanize energy, improve MFIs health and build consumers’ confidence.