5.3.2:Recommendation to the
Government
The government should provide good regulation environment to
encourage commercial banks and intermediaries banks lend funds to MFIs. The
government should encourage the development of sustainable MFIs that are
managed in professional manner and capable of rendering financial services
relevant to needs of the low and medium incomepeople.
The government's primary development goal should be to achieve
sustainable reduction in poverty by increasing total resources available to the
population as a whole and increasing the share of those resources going to its
poorest segment. It should also create enabling conditions for the development
of micro finance sector whilst ensuring that the stability of financial system
is maintained and that consumers are protected.
Following adoption of nation policy on MF, government should
adopt a law on MF and another law on savings and credit cooperatives; this is
to strengthen the supervision and coordination of the operations connected to
this sector. The government should organize entrepreneur development programs
so as to equip skills to organize the business effectively by small business
people in order to have entrepreneurial promotion and development.
Government should mobilize resources, to banklise people and
to capitalize or monetize the rural areas sector so as ensure equitable
distribution of financial institution and resources. The government should
inject funds into microfinance institutions so that more people access those
funds cheaply.
The government will not be a provider of financial services
but should play the role of organizing the microfinance sector to improve
operations.
5.3.3: Recommendation to
microfinance institutions.
Profitable microfinance institutions should be adequately
capitalized whose management should be healthy and prudent so as to protect the
savings of depositors. Microfinance institutions should mobilize funds from
demotic sources where NGOs will come as last resort so that overall goal of the
reduction of poverty in rural areas of Rwanda can be best achieved.
They should develop tools that are necessaryfor the
functioning of management capacity of their staff, specific administrators,
employees and beneficiaries. The legal and coordination framework should
inspire this. This enables any microfinance institution to evaluate its
performance. Microfinance institutions should respect their policies by
providing sufficient financial services to the targeted population and building
their capacity with willingness in their sector.
Therefore, all microfinance institutions should know duration
of loans; details of repayment received and deposits taken; provisions made for
any delinquent loans, results of any micro project funded with loan and also
number and gender of their clients. Microfinance institutions are required to
submit regular reports of these data to BNR in accordance with regulation.
5.4: AREAS FOR FURTHER RESEARCH
After carrying out the research and learning some problems in
the field on the project entitled «The impact of microfinance institutions
credit services in poverty alleviation in rural areas of Rwanda» a
research is recommended on the following areas:
· Accountability and performance as tools for proper
functioning of microfinance institutions
· Factors that can lead to poverty reduction since
microfinance institution is one of them,
· Proper loan application assessment skills towards
viable institutions,
· Commercialization of micro finance services and
products offered by microfinance institutions.
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