Rwanda's Remarkable Journey to Financial Inclusion: A Model for Africa
Fifteen years ago, Rwanda faced a significant challenge: more than half of its adult population (52%) lacked access to essential financial services. This stark reality, revealed by the 2008 FinScope survey, became a crucial turning point, spurring the nation to prioritize financial inclusion as a key driver of economic development. This realization led to the establishment of Access to Finance Rwanda (AFR) in 2010, an organization that has since played a transformative role in reshaping the country's financial landscape.
AFR was structured as a private, not-for-profit entity with a clear mandate: to act as a catalyst, identifying and dismantling the structural barriers that prevented large segments of the population from accessing financial services. Through strategic collaborations with key players in the financial sector, AFR has been instrumental in driving Rwanda's financial inclusion rate to an impressive 96% by 2024, positioning the nation among the most financially inclusive countries in Africa. This progress translates to over 4.5 million Rwandans gaining access to new or improved financial services thanks to AFR-supported initiatives.
A Unique, Market-Oriented Approach
AFR's institutional design distinguishes it from many other donor-funded initiatives. Operating outside the traditional NGO framework, it possesses the agility to forge flexible partnerships with both public and private sector actors. At the heart of its operations lies the Market Systems Development (MSD) approach. This approach focuses on identifying and addressing the underlying causes of financial market failures, rather than simply treating the symptoms.
According to Jean-Bosco Iyacu, CEO of AFR, their role extends beyond providing immediate solutions. Instead, they focus on assessing the entire financial ecosystem to ensure reliable and affordable access. This holistic approach is crucial for achieving sustainable and scalable impact. This systems-level thinking informs AFR's work across a broad spectrum of initiatives, including digital payments, long-term savings, inclusive insurance, research, and capital market development.
Expanding Financial Access to Underserved Populations
The expansion of financial inclusion in Rwanda has been nothing short of remarkable. Over the past decade and a half, the percentage of adults accessing financial services has doubled, rising from 48% in 2008 to 96% in 2024. AFR's interventions have been particularly effective in bringing underserved populations into the financial mainstream. These groups include:
- Women
- Smallholder farmers
- Informal workers
- Refugees
- Persons with disabilities
AFR's success stems from its ability to work across the entire financial ecosystem, effectively coordinating government actors, supporting product development with financial institutions, and investing in shared market infrastructures.
Accelerating Digital Financial Services
One of AFR's most transformative contributions has been its role in supporting the development of the Rwanda National Digital Payment System. This platform, the country's first fully interoperable payment system, links banks, microfinance institutions, telecoms, and fintech firms, facilitating the transition towards a cashless economy.
Currently, over 1.5 million people are actively using digital person-to-person payment platforms. This infrastructure has significantly reduced transaction costs and improved the delivery of financial services, particularly in remote areas. Furthermore, over 619,000 Rwandans now receive government-to-person cash transfers electronically, further enhancing efficiency and transparency.
Building Financial Resilience Through Savings and Insurance
AFR has also played a pivotal role in strengthening financial resilience through the design and rollout of national-level savings and insurance schemes. Its support was instrumental in launching the Ejo Heza long-term savings scheme, which has attracted over 3.5 million contributors. Additionally, AFR supported the National Agriculture Insurance Scheme (NAIS), which provides insurance coverage to over 650,000 farmers against crop failure and livestock losses. These programs represent a significant shift from short-term financial access to long-term financial security, specifically targeting low-income and vulnerable populations.
Unlocking Finance for Growth in Key Sectors
Access to credit remains a persistent challenge across much of Sub-Saharan Africa, particularly in rural and agricultural sectors. AFR has addressed this challenge by working to de-risk lending to these communities. This involves supporting financial institutions in establishing specialized agriculture lending units and leveraging credit guarantee schemes. These efforts have unlocked over Rwf 2 billion in agricultural lending to farmers and small-scale rural entrepreneurs, many of whom were previously considered unbankable.
Supporting Capital Market Development
Beyond the banking and insurance sectors, AFR has actively contributed to the diversification of the Rwandan financial sector and the development of its nascent capital market. This includes supporting feasibility studies, providing technical assistance, and backing innovative transactions. A notable example is the listing of Rwanda's first independent power producer on the Rwanda Stock Exchange. These activities are helping to broaden Rwanda's financial sector beyond traditional banking, creating new investment vehicles and channels for long-term capital.
Driving Evidence-Based Policy and Innovation Through Data
AFR serves as a leading source of financial sector data and market intelligence in Rwanda. Since 2012, AFR has been the custodian of the national FinScope Surveys, which have played a crucial role in shaping Rwanda's financial inclusion strategies and regulatory reforms. The insights generated through FinScope are made possible through strong collaboration with key partners, including the Ministry of Finance and Economic Planning (MINECOFIN), the National Institute of Statistics of Rwanda (NISR), and the National Bank of Rwanda (NBR).
FinScope data has informed the development of Rwanda's national financial education strategy, supported gender-responsive and inclusive regulatory efforts, and catalyzed policy reforms aimed at expanding access to finance for underserved groups. Notable outcomes include the establishment of Umurenge SACCOs and the design of financial products tailored to the diverse needs of Rwandans.
The Future of Financial Inclusion in Rwanda
Despite Rwanda's remarkable progress, approximately 4% of adults remain financially excluded. Many of these individuals belong to vulnerable groups, including women, youth, refugees, persons with disabilities, and micro, small, and medium enterprises (MSMEs). AFR remains committed to collaborating with partners to close this gap and ensure that no one is left behind.
AFR's 15-year journey reflects a broader evolution in development thinking, moving from short-term, project-based interventions to long-term, market-based, and system-level change. As Rwanda continues to deepen its financial sector and drive inclusive economic growth, AFR's role as a behind-the-scenes catalyst remains vital.
Looking ahead, Rwanda's prosperity will depend on its ability to harness innovation, respond to climate risks, and adapt to an increasingly complex global economy. AFR is committed to supporting this transition, helping to shape a financial system and economy that is not only inclusive but also resilient, adaptive, and fit for the future. The strategic focus will be on directing finance and other innovative interventions toward productive sectors such as agriculture, manufacturing, tourism and hospitality, and creative industries. This will positively impact Rwanda's trade balance, contribute to its economic transformation and transition to a greener economy, while strengthening the resilience of low-income communities against climate and economic shocks. By leveraging technology, data, and digital public infrastructure, the aim is to build smarter, faster, and more inclusive financial systems and economies for the next generation.
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