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RWANDA - Urwego - THIS PROJECT IS NOW COMPLETED

Country:  RWANDA

Project Title:  Urwego

Project Designation:  1105

The Need:

The primary reason for beginning microfinance work in Rwanda was to serve the financial needs of the post-war poor. Following post-war reconstruction, through grassroots interaction with poor communities and local authorities, World Relief identified the provision of financial services for the poor as a key strategy for the economic renewal and empowerment of the poor. Urwego (Kinyarwandan for “ladder”, meaning “climbing the economic ladder of success” began as an NGO microfinance program was registered in October 2004 under Rwandan law and authorized by the National Bank of Rwanda to operate as a limited liability company with three shareholders: World Relief US, World Relief Canada, and Hope International. In August 2007, through a merger with Opportunity International (OI), Urwego Opportunity Bank of Rwanda (UOBR) was established and officially opened in November 2007.

WRC’S Response:

Urwego Opportunity Bank of Rwanda (UOB) is a significant and respected microfinance provider in the Rwandan context serving 24,300 clients (87% are women) in all 19 districts, with a portfolio of $1.4 m, PAR of 2%, and OTR of 98%. In 2004 the UN and Harvard Business School ranked Urwego as the top MFI in Rwanda. The plan for 2007 to 2010 is to contribute to poverty reduction in Rwanda by consolidating Urwego as a more competitive and sustainable institution in terms of good governance, product development, marketing and financial performance, while also increasing the number of active clients served to 34,000 and maintaining a strong loan portfolio.Urwego Opportunity Bank of Rwanda (UOB) is a significant and respected microfinance provider in the Rwandan context serving 24,300 clients (87% are women) in all 19 districts, with a portfolio of $1.4 m, PAR of 2%, and OTR of 98%. In 2004 the UN and Harvard Business School ranked Urwego as the top MFI in Rwanda. The plan for 2007 to 2010 is to contribute to poverty reduction in Rwanda by consolidating Urwego as a more competitive and sustainable institution in terms of good governance, product development, marketing and financial performance, while also increasing the number of active clients served to 34,000 and maintaining a strong loan portfolio.

What we hope to accomplish:  

1. Active clients (90% women) to be increased from 29,143 to 34,000.

2. Increased awareness and skills on credit management, business practices, and social topics to be given to 34,000 active clients.

3. 34,000 active clients to applied micro-loans to their businesses.

4. 3,664 women’s leaders to be given increased awareness of group and financial management skills.

5.  MFI capacity to increase through rating assessments, staff training, have a strong senior management team and ongoing systems developed.

WHAT WE HAVE ACCOMPLISHED

As of Summer 2009

1.  Active Clients (89% women) has increased from 29,143 to 35,349

2.  6,206 clients have increased awareness and skills on credit management, business practices, and social topics.

3.  35,349 active clients have applied micro-loans to their businesses.  14,132 clients are saving for investment.

4.  UOB capacity has increased after the OI merger through increased capitalization, strong senior management and capacity-building initiatives such as:

• New loan products introduced (bicycle, salary and direct entry solidarity loans).
• Continued set up of eMerge MIS.
• Good progress in set-up of off-site data back-up center.
• Trained field staff, managers and supervisors on eMerge software for tracking loan and banking activities.
• 16 staff participated in risk assessment training.
• Head of IT visited USA for IT network meetings and ATM installations for UOB.

(a) Loans have increased average household income and well-being.

(b) Clients have been able to improve their nutrition by buying food for their families, improve the condition of their health by meeting medication needs in case of disease, acquired assets such as land, livestock and homes, and, managed to save for future emergencies.

(c) Womens status in society was raised by women being financially independent through establishing their own businesses which subsequently gives them more rights and opportunities to participate in decision-making in society.

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