Microfinance and Poverty Reduction among Women Households in Kageyo Sector, Gicumbi District in the Northern Province of Rwanda

Abstract

As we move from MDGs to SDGS, this study has the intention to contribute availing strategies and guidelines that may help to overcome challenges and maximization of opportunities for Rwanda in realizing SDGs. It was conducted in Kageyo Sector, Gicumbi District in the Northern Province of Rwanda with specific objectives (1) to analyze if and how Microfinance contribute to poverty reduction among women households in Kageyo Sector, (2) to investigate Challenges of women running microfinance and (3) to propose possible solutions to challenges experienced by women running microfinance in Kageyo Sector. Being exploratory, this study was conducted on a sample of 29 from 32 women heading households in Kageyo Sector and accessing microfinance. Qualitative and quantitative information were collected. Historic, comparative, analytic methods and techniques, namely: one-to one interview, focus group discussion, observation and textual analysis helped to explore all research questions. Findings revealed that before accessing microfinance women faced problems such as food deprivation (93.1%), lack of sanitation facilities (72.4%), health deprivation (44.8%), lack of shelter (65.5%) and lack of access to education (6.9%). After getting the loan they used it in different areas including consumption (100%), education (62.1%), health insurance (72.4), investment (89.6%), debt repayment (24.1%), and sanitation facilities (37.9%). As a results, women reported that credits received contributed in reducing poverty among their households by allowing them to access food easily (100%), finding clothes (100%), adequate accommodation (72.4%), health insurance (96.5%), sanitation facilities (82.7%) and access to education (100%). However, they informed to meet several challenges such as lack of mortgage (69%), high interest rate (100%), insufficient loans (62%), fear of risks (41.5%), high taxes (24%) and diversion of funds (72.5). To deal with those challenges, they proposed solutions like working in associations (100%), recognizing rights to property (20.7%), reducing interest rates (100%), increase of trainings (24%) and business spirit (31%). It was therefore noticed that microfinance reduced poverty among women in Kageyo Sector, therefore, we recommended the central government to consider that tool while the step is being done towards SDGs by extending it to the whole community and especially dealing with challenges that hinder entrepreneurs running microfinance.