Rwanda

Key figures

The Rwandan microfinance sector is strongly guided by Central Bank supervision and an active government agenda for economic transformation. Terrafina Microfinance supports emerging and growing MFIs, in collaboration with World Relief and BRS - de Belgische Raiffeisen stichting - and seeks to capitalize on synergies with the programs of the Dutch Embassy in Rwanda. >>

Terrafina Microfinance has built partnerships with several credit-led MFIs, like Duterimbere, CAF Isonga, and Vision Finance, Swoft SA and Amasezerano. In their early days, these partnerships started with grants and seed capital support, combined with technical support for business planning. Currently, Terrafina is working on access to loans for MFIs like Duterimbere and Vision Finance, Caf Isonga and Amazezerano to help them increase their outreach, in addition to specific capacity building interventions for governance and management and well as for product development.

Terrafina and Rabobank Foundation work closely with 3 Unions and 3 cooperative societies in a specific capacity building program. Terrafina also collaborates with the Banque Populaire du Rwanda, a cooperative bank in which Rabobank International is a 35 percent shareholder. Additionally, together with World bank, German Savings Bank and Trocaire, Terrafina provides sector support to the national microfinance network AMIR.

One of Terrafina's unique efforts in Rwanda is the joint initiative of linking microfinance with value chain promotion. This started in 2006 with Agriterra. Since then, other Dutch organisations like ICCO, AgriProfocus, IFDC, Oxfam Novib, SNV, KIT and WUR have become part of the effort. >>

IT WORKS! making rural credits more professional. Terrafina microfinance has the responsibility to work with MFI partners on product development for these chains and for knowledge building on financial services in Rwanda.

Another asset to Terrafina's work is its field microfinance advisor Frank Bakx, stationed in Kigali since January 2009. The advisor's role is to provide and organise capacity building support for Terrafina's client MFIs in the Great Lakes region, in collaboration with local and international consultants. 

By having this local presence, Terrafina is able to provide much needed hands-on support to local MFIs while at the same time keeping costs down. This intensive support at the beginning of the process is necessary to help get the MFIs off the ground, making them more successful and independent and less in need of more detailed hands-on support as the projects progress.  This is a model that Terrafina hopes to roll out in its other regions.