Vol 6 Issue 1 April 2018-September 2018

Abstract: Raising more domestic revenue is a priority for most sub-Saharan African countries (Drummond & al., 2012). Mobilizing revenue is a way for governments to create fiscal space, provide essential public services. However, the domestic tax bases in most African countries are undermined by widespread tax avoidance and evasion. This study determined to assess the effect of taxation on business formalisation in Rwanda. To achieve this, the study was guided by the following specific objectives; to determine the effect of business owners’ attitude towards government spending on business formalization in Rwanda; examine the level of trust in Tax Authority on business formalization in Rwanda; to analyse the effect of attitude towards tax information on business formalisation in Rwanda and to assess the effect of fiscal (tax) burden on business formalisation in Rwanda. This study adopted a descriptive research design. The target population was 137,699 informal enterprises. The sampling technique employed was simple random sampling and the sample size was 399 respondents. Primary quantitative data was collected by use of self-administered structured questionnaires. The researcher also used secondary data . The data collected was analysed, with respect to the study objectives, using both descriptive and inferential statistics. The data was analysed using descriptive statistics such as percentages. Multiple regression analysis was employed to determine relationship between taxes and business formalisation in Rwanda. Data was presented in tables, charts, figures and frequency tables. The   findings that study that attitude towards government spending, level of trust in tax authority and tax burden had had had effect on business formalisation while attitude towards tax information does not influence business formalisation. This is due to the fact that  informal  business  owners   do not interact  with   educators  from  Rwanda  Revenue  or  Private Sector Federation because  these bodies  always target formal  business.  

Keywords: Business formalisation, Tax burden, Tax compliance.

Title: EFFECT OF TAXATION ON BUSINESS FORMALIZATION IN RWANDA

Author: MUNYANGEYO Theogene, Dr. MULYUNGI Patrick, NGUSALE Vincent

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: The special role that banks play in the economic system implies that banks should be regulated and supervised not only to protect investors and consumers but also to ensure systems stability. Compliance to capital and liquidity requirements, Non-performing Loans level set as well as risk management are the major challenges faced by banks in order to perform effectively and become profit-making originations. This study sought to examine the effect of prudential regulations on Financial Performance of Commercial Banks in Rwanda. To achieve this, the study examined the effect of capital requirements on the financial performance of Commercial Banks in Rwanda, established the effect of liquidity requirements on the financial performance of Banks in Rwanda, determined the effect of assets quality on the financial performance of Banks in Rwanda, examined the effect of risk management on the financial performance of Banks in Rwanda. The study adopted a descriptive research design. The target population of this study comprised of 95 managers of Bank of Kigali. A sample size of 77 respondents was determined from a total population of 95 individuals using the formula by Yamane. A descriptive research design was adopted due to its ability to describe the relationship between elements of prudential regulations and Financial Performance. Stratified random sampling technique was used to select the managers. Primary data was collected using a structured questionnaire. The data was analyzed using SPSS for Descriptive statistics to test the impact of prudential regulations and Correlation analysis was used to determine the nature and magnitude of the relationship among prudential regulations variables, and regression analysis. The regression results revealed that there is a positive relationship between prudential regulations and financial performance of commercial banks in Rwanda. The coefficient of determination proved that the independent variables contributed to 75.8% of the variation in financial performance as explained by adjusted R2 of 0.758%, which shows that the model was a good predictor. The study findings also revealed that the banking sector enjoys a strong financial performance partly because of implementing and maintaining effective prudential regulations as imposed by the BNR. The study recommends that banks should effectively implement prudential regulations due to the nature of the riskiness of the banking sector and its impact on financial performance.

Keywords: Prudential regulations, financial performance, commercial banks.

Title: EFFECTS OF PRUDENTIAL REGULATIONS ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN RWANDA: A CASE OF BANK OF KIGALI

Author: MUSENGIMANA NGENZI OLIVIER, Dr. PATRICK MULYUNGI

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: It is now widely agreed among economists, policy makers and central banks that the main objective of monetary policy is to keep low inflation rate which is regarded as a measure of macroeconomic stability. To achieve this objective, inflation has to be well managed and a need to understand its determinants is at utmost important. Monetary policy and financial stability report (2016). As in other countries, the findings in Rwanda reveal mixed results on inflation and its determinants. This is mainly due to a range of conventional views about the appropriate measure of inflation and also due to a disparity between countries (developed and developing countries). This raises concern among policy makers and requires an investigation as to why inflation continue to increase despite their efforts to control main drivers of inflation in order maintain price stability. Given this backdrop, there is need to establish the determinants of inflation in Rwanda. This has form the general objective of the study. The specific objectives of this study were to examine the effects of money supply on inflation; to investigate the effects of exchange rate on inflation; to determine the effects of GDP on inflation and to establish the effects of oil prices on inflation.  Findings clearly suggest that a unit change in Money supply increases the inflation; a unit change in Exchange rate decreases the inflation; a unit change in GDP certainly and significantly increases the inflation and that a unit change in the Oil price decreases the inflation by certain measures. Though the econometric model used had been found to fit the data, (with R-square = 94.45%), all along, serial correlation or simply heteroskedasticity of the error terms has been found to exist for the time series that were used. With respect to the level of elasticity of the variables under study, both exchange rate and money supply had larger coefficients that the GDP and Oil price. Unit root test performed also suggested stationarity at different lags for each time series. Particularly the money supply time series was found to be more stable than any of the three remaining; GDP time series was stationary only at lag 0 and at lag one; inflation and oil price time series were found to be stationary only at lag 7 and 17 respectively. Interestingly, at lag 18, all-time series considered in the model had an explosive behavior.  Through the Vector autoregressive test, impulse-response dynamics of the time series in the model was performed. Findings suggest strongly the shocks on inflation causes responses of different magnitude on the independent variables. When considering shocks from the predictors, it has been found particularly that shocks from exchange rate causes a huge oil price response. This is in line with the economic dynamism that has been observed in Rwanda. Stability of VAR model under study has also been examined and findings revealed a rather non-stable VAR model, if the natural logarithm of the economic variable is considered. When transformed into their difference state, finding reveals a completely stable VAR model. Co-integration has been also performed. Findings suggested existence of only two possible co-integration vectors that can explain the long run economic effects, namely the inflation and money supply. Thus, not neglecting other factors, findings of the current research strongly suggest that at the fore front of the determinants of inflation is primarily money supply in the economy. Hence, sound an adequate monetary policy has evidently more impact on inflation than any other determinant considered in this work.

Keywords: Money Supply, exchange rate, Inflation, Gross Domestic Product, Consumer Price Index.

Title: AN EMPIRICAL ANALYSIS OF THE DETERMINANTS OF INFLATION IN RWANDA (2006-2015)

Author: Noella Nyishimente, Dr. Jaya Shukla, Dr. Patrick Mulyungi

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: The main objective of this research was to assess the effect of resource planning on sustainability of Kirehe Community Based Watershed Management Project. This study adopted descriptive research design. For this study the target population was 43 former employees of Kirehe Community Watershed Management Project. During this research, as the target population is quite small in numbers, the researcher decided to adopt a census where all population was considered as sample size which means that all 43 employees of KWAMP Project was considered as respondents in this study. The researcher relied on primary data and questionnaires were used to collect them. The questionnaires that are intended to be used in this study were made of both closed-ended and open-ended questions. The data that were collected was firstly captured in Microsoft Excel, checked for completion and coded. The data for this study were analyzed quantitatively using percentages, frequencies and using multiple linear regressions. As the findings revealed that the results of correlation between human resources planning and sustainability of KWAMP were at 0. 609 meaning that human resources planning affect sustainability on level of 60.9% which proves a significant relationship between human resources planning and sustainability of KWAMP. The researcher concludes a significant relationship between human resources planning and sustainability of KWAMP. The researcher also concluded a positive and significant relationship between financial resources management and sustainability of KWAMP since their results of correlation between them were at 0.567 meaning that financial resources planning at the level of 56.7% which prove a significant relationship between financial resources management and sustainability of KWAMP. Last but not least; the researcher concluded a positive and significant relationship between material resource and sustainability of KWAMP because the results of correlation between them were at 0. 951 mean that material resource planning affects sustainability of KWAMP at the level of 95.1% which prove a significant relationship between material resource and sustainability of KWAMP. The project owners should effectively put much emphasis in planning human resources especially in planning for effective recruitment and placement. They should also make sure that the recruited employees are well inducted in the working team so as to ensure the project is working in a favorable environment. The project managers and funders should always ensure that they have mobilize and raised enough financial resources in order to avoid the lack of financial means which in turns may lead to delay of project activities and finally, the researcher recommends to the project managers and their procurement staff to plan for effective and timely procurement, they should always make sure that the supplies are supplied within the right quantity, quality and time so as to ensure the smooth running of the project activities.

Keywords: Project Planning, Resources planning, Sustainability, rural development projects.

Title: EFFECT OF PROJECT RESOURCES PLANNING ON SUSTAINABILITY OF RURAL DEVELOPMENT PROJECTS IN RWANDA: A CASE OF KIREHE COMMUNITY BASED WATERSHED MANAGEMENT PROJECT

Author: Theogene Wiclef Kagisha, Dr. Patrick Mulyungi

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: It is considered that a company’s success is due to organizational performance, employee job satisfaction and employee affective commitment. Little researches have been conducted on the impact of transformational leadership on the general performance of the organization, the limited character of research findings in this area suggests the need to investigate further the nature of the relationship between leadership and performance. This paper seeks to address this gap in the literature by presenting research that aims to identify the impact that transformational leadership has on employee performance motivation being constant at WASAC. The general objective of this study was to establish the effect of transformational leadership on the organizational performance in Rwanda state corporations a case of WASAC. A descriptive research design with a cross sectional component was used where all relevant parties were involved. The target population were specific employees of WASAC which were selected for the study. The data were collected using questionnaires then analyzed using SPSS, Correlation were also used so as to determine the relationship between the independent variable and dependent variable so as to indicate whether there exists a significant relationship between transformational leadership and employee performance. Regression analysis were used to extract a systemic relationship between the independent and dependent variables and the results revealed that determinants of schedule control studied in this research have an influence of 80.7% on organizational performance of WASAC. The study applied a descriptive research design and used questionnaire to collect primary data from employees of WASAC Kigali Head Quarter. The study based its findings on the data from 55 employees. The findings of the study also concluded that managers intervened promptly on subordinate performance to increase subordinates’ staff morale and team spirit, transformation way of leadership has improved on the employee productivity in the sense that staff are aware of their expectation, how to carry-out their duties and taking right action. Therefore, the researcher recommended that transformational leadership should be taught to all people at all levels of organization to have a positive impact on the overall performance. There should be effective communication between management and other employees within the organization and it is suggested that managers should be trained to use both styles of leadership and along with the increasing need for new skills and competencies of leadership as a result of changes in community. Employees motivation should be boosted at all cost to promote productivity. Reward and punishment should be done in a fair manner to all employees.

Keywords: Transformational leadership, Transactional Leadership Theory, Organizational performance, Employee effectiveness.

Title: EFFECT OF TRANSFORMATIONAL LEADERSHIP ON THE ORGANIZATIONAL PERFORMANCE IN RWANDA STATE CORPORATIONS: A CASE STUDY FOR WATER AND SANITATION CORPORATION

Author: MUKUNDANE Winnie, Dr. MULYUNGI Patrick, NGUSALE Vincent

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: Credit management is one of the most important activities in any company and cannot be overlooked by any economic enterprise engaged in credit irrespective of its business nature. Sound credit management is a prerequisite for a financial institution’s stability and continuing profitability, while deteriorating credit quality is the most frequent cause of poor financial performance and condition. As with any financial institution, the biggest risk in bank is lending money and not getting it back. The study sought to determine the effect of credit management on the financial performance of commercial banks in Rwanda. The study adopted a descriptive survey design. The target population of study was 57 employees of Bank of Kigali in credit department. Entire population was used as the sample giving a sample size of size of 57 employees. Purposive sampling technique was used in sampling where the entire population was included in the study. Primary data were collected using questionnaires which were administered to the respondents by the researcher. Descriptive statistics, ANOVA were used to analyze data. Findings of the study revealed that client appraisal; credit risk control and collection policy had effect on financial performance of bank of Kigali. Findings also showed that there is a positive relationship between credit management and financial performance of bank, where  a unit increase in client appraisal would lead to increase in performance of BANK by a factor of 0.335, a unit increase in credit risk control would lead to increase in performance of BANK by a factor of 0.234 and also unit increase in collection policy would lead to increase in performance of BANK by a factor of 0.243.The study recommends that there is need for BANK to enhance their client appraisal techniques so as to improve their financial performance. Through client appraisal techniques, the BANK will be able to know credit worth clients and thus reduce their non-performing loans. There is also need for BANK to enhance their credit risk control this would help in decreasing default levels as well as their non-performing loans hence improving their financial performance.

Keywords: Credit management practices, financial performance of bank.

Title: EFFECT OF CREDIT MANAGEMENT PRACTICES ON FINANCIAL PERFORMANCE OF BANKS IN RWANDA

Author: Jackline Dusabe, Dr. Patrick Mulyungi

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: Access to finance especially to the poor is essential for promoting inclusive economic growth and eradicating poverty in the country. Rwanda’s Economic Development and Poverty Reduction Strategy (EDPRS-2) recognizes that socioeconomic opportunities and development will be undermined if expanded financial services are not available, especially to the poor and other disadvantaged groups who are deprived of access to these services. Evidently, an inclusive financial system creates employment opportunities, ensures economic and financial stability through reducing vulnerability and contributes to poverty reduction. The main objective of this study was to analyze the role of financial inclusion in promoting investment and living conditions in Rwanda. Specifically, it analyzed the extent of financial inclusion of NCPD’ members; determined the factors associated with the financial exclusion of NCPD’ members; and assessed the relationship between financial exclusion, investment and living conditions of the NCPD’ members. The study findings are useful for the NCPDs’ management, scholars and practitioners. It was a cross-sectional study using both qualitative and quantitative research design methods. The questionnaire and interviews were used for data collection from 196 respondents and Focus Group Discussions of 7 household heads. For validity and reliability of research instruments, a pilot study was conducted at the National Union of the Disability Organizations of Rwanda. The content consistency of instruments was assessed by experienced researchers. Statistical Package for Social Sciences (SPSS) software and descriptive statistics were employed for data analysis. The study found that 174(89%) respondents did not have access to financial services, while 22(11%) had access to financial services. To compensate the lack of funds from financial institutions, the NCPD in Rwanda allocated some funds to PWDs’ cooperatives to be invested mostly in farming (52.06%), commerce (13.26%) and tailoring (12.72%) while minor amounts were allocated in other micro-projects (21.41%) due to the lack of funds. Despite the allocation of financial assistance, PWDs do not have accessibility to formal financial services in order to improve their living conditions. Barriers to financial services included: communication, hearing, and sight barriers (97.96%); lack of training, skills and capacity (95.92%); lack of previous experience (85.20%); lack of access to various opportunities (65.61%); unemployment and lack of income (98.98%); and inaccessibility to offices (48.98%). In addition, the study found that the NCPD’s financial assistance did not contribute sufficiently to job creation (43%), income generation (47%), access to education (45%), access to health facilities (46%), settlement improvement (41%), and nutrition improvement (39%) due to its insufficiency. Only 13(6.63%) respondents created from 1 to 10 jobs; 4(2.04%) created from 10 to 20 jobs; and 3(1.53%) created from 20 and more jobs. The study concluded that NCPD’s financial assistance is significant in contributing to the socio-economic development of PWD’s cooperatives in Rwanda. It recommended significant efforts to build inclusive financial systems in Rwanda; to provide training to the disabled people for developing their skills to be involved in any economic activities; and to look for enough grants from NGOs and other organisations that seek to improve the wellbeing of persons with disabilities.

Keywords: promoting investment, NCPD’, employment opportunities, socio-economic development.

Title: ROLE OF FINANCIAL INCLUSION IN PROMOTING INVESTMENT AND LIVING CONDITIONS IN RWANDA: A CASE STUDY OF THE NATIONAL COUNCIL OF PERSONS WITH DISABILITIES IN KIGALI CITY

Author: ROSALIE UFITINEMA, Dr. PATRICK MULYUNGI, Dr. OLWENYI

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: Evolution of teamwork and its concept started during the industrial revolution, where most organizations shifted from the hierarchical approach and used scientific management to design organizations and jobs. As per the report of formative evaluation of Cornerstone Development Project of December, 2017; the project is equipped by enough resources necessary to implement its activities, however, despite these potential resources available, Cornerstone Development Project did not managed to implement its activities as expected. The findings from that formative evaluation recommended the project owners to improve their internal teamwork practices since the evaluation findings revealed that there are poor internal teamwork practices. Therefore this research aims at to analyze the effect of internal teamwork practices on performance of projects in Rwanda by focusing on Cornerstone Development Project. The study was guided by three specific objectives including determining the effect of internal accountability on performance of Cornerstone Development Project to assess the effect of internal cohesiveness on performance of Cornerstone Development Project and to establish the relationship between internal communications on performance of Cornerstone Development Project. The researcher used descriptive research design where quantitative methods of data collection and analysis were used. The target population of this study was fifty eight (58) employees of Cornerstone Development Project. In this study the researcher calculated the sample size use Yamane formula and come up with a sample size of 51 respondents. To achieve the objective of this study the researcher collected primary data using questionnaires. Means, standard deviation and frequency distribution were used to analyze data. Data presentation was done by the use of frequency tables for easy understanding and interpretations. The study concluded that internal team accountability have an effect on performance of Cornerstone Development Project. The research findings revealed that there is presence of self-assessment practices that enable the team to work accordingly. Furthermore research findings revealed that there is ownership of team members that enable the project team to implement the project accordingly. The research findings revealed that team members support each other and this enables them to implement the project’s activities accordingly, there is significant and positive relationship between internal team cohesiveness and performance of Cornerstone project. The study concluded that in Cornerstone Development Project there are effective discussions among the project team members. Furthermore the researcher concluded that there is effective listening among the project team members. The project managers should foster internal team accountability so as to ensure that every project team member is responsible for his/her assigned responsibilities; they should also make sure that there is ownership of team members so as to enable the project to implement the project accordingly. The project managers and owners should foster internal team cohesiveness since it has been seen to be a big factor contributing to project performance. The project team members should respect each other so as to create a favorable working environment that enables the project team to implement the project activities accordingly. The project implementing team should always batter on the internal communication since it is the essence for performance of any project.

Keywords: Internal Teamwork Practices, Project Performance.

Title: EFFECT OF INTERNAL TEAMWORK PRACTICES ON PERFORMANCE OF PROJECTS IN RWANDA: A CASE OF CORNERSTONE DEVELOPMENT PROJECT

Author: Modeste Ntaganda, Dr. Patrick Mulyungi, Dr. Yosuf Muchelule

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: In the portfolio of commercial banks, liquidity assets play a very crucial role because banks operate largely with the funds borrowed from depositors in form of demand and time deposits. These liquidity assets are the essential balance sheet items which have the capacity to maintain the confidence of depositors which is the most valuable intangible asset of the commercial banking business. The same time liquidity level should not fall below minimum requirement as it lead to the inability of the organization to meet short term obligation that are due. Many banks have investment in safe and high yielding illiquid assets but are tied up in loans. Some banks despite having a lot of assets, the sudden withdrawals and the lack of liquid funds lead to a huge loss as a result of taking out emergency loans. This was identified as the major cause of bank failures. The general objective of the study was be to analyse the effect of liquidity management practices on profitability of commercial banks in Kigali. The following are specific objectives of the study: To analyze the effect of liquidity ratio on profitability of commercial banks in Kigali, To examine the effect of Loan to Deposit Ratio on profitability of commercial banks in Kigali and to evaluate the effect of Cash Reserve Ratio of commercial banks in Kigali. Population of this study was 20 banks staff whose views and knowledge can derive the study. As the target population were found to be small. There was no need for sampling, the researcher applied census method. Questionnaires distributed to 20 staff (Operation department, Finance department and Treasury Department) from Ecobank. The mentioned people were chosen purposively due to the nature of their roles of dealing with liquidity on daily basis. The researcher used both primary data and secondary data, primary data collected using structured questionnaire and secondary data collected using documents like books, journals and internet. Questionnaires tested by two experts in academic research to ensure that the questionnaires can answer the set objectives and hypotheses which are also to be tested. However, Liquidity ratio (0.739) has greater influence on bank profitability followed by Cash reserve ratio (0.48 8) and lastly Loan to deposit ratio (0.166). This implies that embarking on either of the variables would improve bank profitability. Since the Pearson Correlation value was 0.969 and it is significant, the researcher proved that there is very strong and positive relationship between liquidity management practices and profitability. Bank should maintain strategy for the day-to-day management of liquidity management.

Keywords: commercial banks, depositors, bank profitability liquidity management.

Title: EFFECT OF LIQUIDITY MANAGEMENT PRACTICES ON PROFITABILITY OF COMMERCIAL BANKS IN RWANDA: A CASE STUDY: ECOBANK

Author: MUREKATETE Josephine, Dr. Patrick Mulyungi, Dr. Noor Ismail

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: The effective management of credit is a critical component of comprehensive credit management which is essential for long-term success of a banking institution. Poor credit management continues to be a dominant cause of bank failures and banking crisis worldwide. General objective of this study examined the influence of credit management on financial performance of banking institutions in Rwanda, ECOBANK as case study. This research was adopted descriptive research design where descriptive statistics was applied to analyze data from questionnaires and financial report. In line with this, the target population is 21 employees of ECOBANK working in finance, auditors department and Top management. In this study, data were collected through self administered questionnaires and documentation technique. Credit management influencing the financial performance has an overall correlation with ECOBANKS financial performance. 0.746 is significant at 5%. These indicate good fit of the regression equation used. Analysis of Variance shows that f-calculated is greater that f – critical that is 5.221>0.00. This implies that the regression equation was well specified and therefore the co-efficient of the regression shows that there is a strong relationship between two variables. The analysis of variance of the predictors of the model is significance at 0.000. The results indicate that control the volatile of interest rate is the most significant in explaining the financial performance with a significance at 0.000 which is less that a p-value of 0.05 and beta value is 0.836. This therefore means that control the volatile of interest rate would be at 0.824 when business information and technology held at a zero constants. The results had shown that credit management on financial performance of banking institutions in Rwanda. The study recommends that commercial banks in Rwanda should put stringent measure when conducting loan appraisal process and should adhere to all the lending requirements stipulated in order to enhance financial performance.

Keywords: credit management, banking institution, financial performance, ECOBANK.

Title: INFLUENCE OF CREDIT MANAGEMENT ON FINANCIAL PERFORMANCE OF BANKING INSTITUTIONS IN RWANDA: A CASE STUDY OF ECOBANK

Author: POPHIA MUHOZA, Dr. Patrick MULYUNGI, Prof. Mike Iravo, Gerard RURANGWA

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: Many projects continue to fail despite the huge investment and use of established project methods and techniques, as the leadership competency required for successful project performance have been found lacking. A project’s success or failure is in part, based on effectively managing the constraints of scope, time, costs, and quality expectations. To achieve this, it is essential that the project manager possess and display appropriate project management leadership. The purpose of this study was to investigate the influence of leadership styles on project performance in Rwanda. The study investigated if authoritative, authoritarian, democratic and permissive leadership styles applied by Consultants’ project managers influenced the performance of construction projects in Rwanda. The study adopted a descriptive survey design. This research used a case study design. The target population for this study consisted of 116 Fair construction staff in the five construction projects whose contract period had elapsed at fair construction. Stratified sampling technique was used to select the samples. Data was collected by use of questionnaires, and a pilot study was conducted prior to the main research to pre-test and try out research protocols, data collection instruments, sample strategies, and other research techniques. Both content and construct validation were used to tests the validity of the instrument while Cronbach’s coefficient will be used to assess the reliability of the instruments. Data was processed using Software Package for Social Sciences (SPSS) version 21. The study deduced that aspects of transformative leadership like reactiveness in finding solutions to challenges, establishing good working relations between contractors and consultants, advising client to pay contractors on time and consensus building accelerates projects progress. Also, it concluded that Autocratic leadership delays completion of road projects due to high turnover of key staff, poor working relations with contractors, staff low morale and lack of commitment to work since project manager does not entertain queries on design errors, missing items in Bill of Quantitates and conflicting instructions to the contractor. It was established that project managers employing democratic leadership complete their projects earlier or within contract period due to regular consultations on design reviews, evaluation of contractor invoices and claims, decision making and delegation of duties making the whole process all inclusive. Finally, on Permissive leadership, the study revealed that when staff are allowed to develop procedures for quality control, work methods, verification of contractor’s invoices and design reviews without consulting project manager, they expose client to financial and time extension claims, many centers of power arise as well as corruption through inflation of Bill of Quantitates thus delaying completion of road projects. The study recommends use of Transformative and democratic leadership’s together in construction projects as they scored highly from respondents below 40years representing 67% of respondents who do not want to be micro managed but need considerable freedom to perform tasks with guidance of project manager. The study also recommended that all senior staff should possess a minimum of postgraduate diploma in project management before being deployed to construction projects. Finally, Permissive leadership should be discouraged as it exposes clients to claims for money and extension of time, corruption though inflation of bill of quantitates by contractors as well as creating many centers of power making road construction inefficient.

Keywords: Leadership, Style, Autocratic Leadership Style, Democratic Leadership Style, Laisser-Faire Leadership style, Transformative Leadership Style Performance.

Title: INFLUENCE OF PROJECT LEADERSHIP STYLES ON PROJECT PERFORMANCE: A CASE OF FAIR CONSTRUCTION COMPANY IN RWANDA

Author: BLAISE OSCAR INGANDA, Patrick MULYUNGI

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: The study in hand was on impact of E-banking on customer satisfaction in Bank populaire of Rwanda (BPR), the case of Ndera branch. The study assessed the effect of e-banking on customer satisfaction. It shed light of factors influencing customers’ satisfaction such as reliability and accessibility of e-banking, the convenience of e-banking and their impact on customer satisfaction in BPR.  The main objective for conducting this research is to assess the impact of e-banking services delivery on the satisfaction of customers in BPR. The target population was bank staff and customers. To select the sample, convinience sampling was used. Data were collected by self- administered questionnaire to customers using e-banking and interview given to bank staff. Data were analyzed using descriptive statistics. It was shown that ebanking services were reliable and accessible in BPR as the majority of respondents (52%) agreed with all indicators of ebanking reliability and accessibility. Moreover, ebanking was said to be convenient as the majority 70% agreed with all factors contributing to convenience. It was revealed   that 17.9 % of respondents were dissatisfied, 41.1% satisfied, (28.6 highly satisfied) with using ebanking services due to a number of reasons( high charges, poor network, limited safety and security of their money).  On the other hand,the majority(69.9% ) of respondents reported to be happy with ebanking services  in the BPR due to time saving, its convenience, working time etc). The findings implied that although a lot has been done to improve ebanking services in order to meet customers’ expectations, there is a need to keep on improving to fully satisfy customers. Recommendations were formulated to different ebanking stakeholders such that customers should improve the way the keep the ATM pin, the bank should increase the limit amount withdrawn per day and ensure the security and safety of customers money. The bank should also reduce time taken to get refunded the bounced money etc.

Keywords: electronic banking, customer satisfaction.

Title: IMPACT OF ELECTRONIC BANKING ON CUSTOMER SATISFACTION IN BANK POPULAIRE OF RWANDA BETWEEN 2015-2017: NDERA BRANCH AS A CASE STUDY

Author: Phocas KAMBALI, Dr. Patrick Mulyungi, Dr. Jaya Shukla,

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: The major problems faced by the projects in Rwanda especially on sustainability of agriculture projects, are the involvement of communities and other stakeholders are present as they have little competence and capacities as well as illiterate in running the project, lack of skill in Monitoring and evaluation the  agriculture  projects. The general objective of this study is to examine the influence of stakeholders' participation on sustainability of agriculture projects in Rwanda. This research was adopted descriptive research design where descriptive statistics was applied to analyze data from questionnaires. The target population is 320 composed by stakeholders' and staffs of crop intensification project program. For the purpose of this study, a sample size of 175 respondents was determined from stakeholders’ and project staffs by using the formula of Sliven’s. In this study, data was collected through self administered questionnaires. Table8 presents the coefficients of model fitness on how stakeholder participation explains sustainability of agriculture projects. Stakeholder participation has an overall correlation with sustainability of agriculture projects of 0.773 which is strong and positive correlation. This means that approximately 77.3% of Stakeholder participation is explained by the sustainability of agriculture projects at 5% level of significance. These indicate the good fit of the regression equation used. The overall significance of the regression estimation model. It indicates that the model is significant in explaining the relationship between stakeholders' participation and sustainability of agriculture projects in Rwanda at 5% level of significance. Analysis of Variance shows that f-calculated is greater that f – critical that is 6.301>0.01. From the research findings the study concluded that participation in project planning, participation in project control and participation in project implementation had a positive and significant effect on the sustainability of agriculture projects. The study also concludes that stakeholder participation ought to the agriculture activities at the earliest stage of the crop intensification project program. Based on the findings of this study, the following recommendations have been suggested. The researcher recommends that CIPP management board should strengthen stakeholder participation by removing the primary bottlenecks identified by the study- information asymmetry/lack of transparency, lack of clarity on stakeholder input and weak legal framework to support stakeholder participation.

Keywords: Stakeholder participation, agriculture activities, agriculture projects.

Title: INFLUENCE OF STAKEHOLDERS' PARTICIPATION ON SUSTAINABILITY OF AGRICULTURE PROJECTS IN RWANDA: A CASE STUDY THE CROP INTENSIFICATION PROJECT PROGRAM

Author: Immaculate UWAYEZU, Dr. Patrick MULYUNGI, Gerard RURANGWA

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

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Abstract: The researcher sought to determine the effects of digital credit services on the growth of Urwego Opportunity bank in Rwanda, to establish the effects of flexible lending services on the growth of Urwego Opportunity bank in Rwanda and to determine the contributions of specific course lending methods on the growth of Urwego Opportunity bank in Rwanda. The researcher used descriptive survey when conducting this study. The study focused on Urwego Opportunity Bank in Kigali city. Urwego Opportunity Bank MFI has eight branches in Rwanda. However, four of them operate within Kigali City. The researcher collected 89 clients and 11 employees. The researcher used cluster method to collect information from the clients whereas stratified sampling was used to collect information from the employees. The exercise was conducted in 2 days. Qualitative data was entered into appropriate analysis programme, preferably statistical package for social sciences (SPSS) from which analysis were done using proportions (percentages), rates and descriptive statistics. Descriptive statistics were used to estimate the mean and standard deviations of certain variables to ascertain how close or wider the sample statistics were spread from the mean. Qualitative data was entered into a compilation sheet whereby the information from various respondents were tabulated.  Responses which showed similarities were given a theme. Each theme was transferred into one sheet from which final analysis was done in relation to objectives of this study. The study found that that mobile phone applications are one of the main products used to reach out to more clients in MFI.  Although MFI have tried to innovate ways of reaching out to clients, majority of the clients still have reservation for adopting the new changes. This was observed when the respondents were asked to state the maximum amount they can deposit using mobile banking and 62.8% stated that they are willing to part with any amount not more than 50,000 Rwandan francs. The study found that product innovation in MFI is very important in ensuring that they reach out to as many as possible clients. This is evident by the response rated at 36.4% of the respondents who supported it arguing that MFI should be in a position to introduce a new good or service to the market. Another important aspect is process innovation whereby a new production process or methodology should be effective and efficient. This was supported by 36.4% of the respondents who stated that process development is equally important as the product development. The study indicates that in average there are similarities between the outcome of the employees who believe that innovative ways of reaching out to customers are effective and efficient, withdrawal and deposit in Letshego Microfinance due to its innovative products as indicated, easy ways to check balance in their accounts, easier ways of opening an account, quick  access to MFI services, error free records innovative services, 24hour online services, security of innovative products and time saving. The study recommends that there is a need to put much attention into the technological innovation, infrastructure building, institutional development, and human capital formation which directly increase the productivity and human resources. There is also a need to ensure an appropriate regulatory and prudential framework for the market of Microfinance including capital adequacy ratios, asset quality indicators and unsecured loan limits. It is important to provide a specialized credit bureau for Microfinance that can help financial institutions to have necessary information on clients in order to minimize risks.

Keywords: Innovative lending methods, growth of microfinance institutions.

Title: INNOVATIVE LENDING METHODS AND THE GROWTH OF MICROFINANCE INSTITUTIONS IN RWANDA: A CASE STUDY OF URWEGO OPPORTUNITY BANK

Author: Tumwesigye Dennis, Dr. Patrick Mulyungi

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

Research Publish Journals

Abstract: The deposit of U-Saccos have big contribution to its financing sources, however SACCOs are still having the problem of using manual procedures on collecting deposit from its customers, therefore this can affect negatively their performance. The general objective of this study is to examine the effect of financing alternatives on the performance of umurenge SACCOs in Rwanda.  Descriptive research design was used in this study. The target population is 174 comprising of Board of directors members, Credit committee, Managers, Credit officers, Accountants and Cashiers of the 12 U-SACCOS operating in Nyabihu District. This study adopted stratification and simple random sampling. Simple random sample is considered a special case in which each population element has a known and equal chance of selection. The sample size of this study is equivalent to 100 respondents. The coefficients of model fitness on how factors influencing the performance of SACCO in Rwanda explained by Debt financing, equity financing and deposit financing. The effect of financing alternatives has an overall correlation with Umurenge SACCO performance. 0.762 is significant at 5%. These indicate good fit of the regression equation used.  The overall significance of the regression estimation model. It indicates that the model is significant in explaining the relationship between effect of financing alternatives and performance at 5% level of significance. Analysis of Variance shows that f-calculated is greater that f – critical that is 5.221>0.00. This implies that the regression equation was well specified and therefore the co-efficient of the regression shows that there is a strong relationship between two variables. The analysis of variance of the predictors of the model is significance at 0.000. Results indicate that deposit financing is the most significant in explaining the performance with a significance at 0.000 which is less that a p-value of 0.05 and beta value is 0.824. Researcher found that deposit financing plays a big role to the performance of Nyabihu Umurenge SACCO. The finding of this research implies that financing alternatives are important aspects for good SACCOS’ performance. Further, they bring the implication that usage of debt financing is not a guaranteed to the performance of SACCO; and Sacco’s performance depends on deposit financing and equity financing. Savings and credit cooperatives should change the way of receiving and withdraw money using handbook. It should use the modern technology (ATM and POS machine) in order to boost their performance and facilitating their cooperative members to withdraw money at any time.

Keywords: Co-operative, SACCO, Long term debt and Short term Debt.

Title: EFFECT OF FINANCING ALTERNATIVES ON THE PERFORMANCE OF SAVINGS AND CREDIT COOPERTIVES (SACCOS) IN RWANDA (A CASE STUDY: UMURENGE -SACCOS OPERATING IN NYABIHU DISTRICT)

Author: CHRISTOPHE MUNYARUGERO, PATRICK MULYUNGI, PROF. MIKE IRAVO

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

Research Publish Journals