Abstract: Most of the SACCO clients are poor women who team up in solidarity groups in order to access credit. But despite the proliferation of so many licensed and unlicensed SACCO institutions for so many years, poverty still remains entrenched among women and their communities. It was reported that overall 27% of the chronically poor households in rural areas are headed by women with women percentage rising 40% in urban setting. It is not clear whether the services and practices used by SACCO institutions are empowering women economically. The general objective of the research study was examined the effect of Micro-Finance institution on economic empowerment of women in Rwanda; a survey of Byumba SACCO, Izigamire SACCO, Umurabyo SACCO and Imbarutso SACCO. The study was used cross-section research design and enables the researcher to collect data from different categories of respondents. This is a multiple case study Imbarutso sacco, Umurabyo sacco, Izigamire sacco and Byumba sacco. This study composed of clients and workers of Byumba Sacco, Imbarutso Sacco, Umurabyo Sacco and Izigamire Sacco, and members of the business community in Gicumbi district. The total numbers of the respondents are 250 people. Sample is153 respondents. Primary data was collected from all respondents using the questionnaire which distributed to the filled in by respondents. Lending program, savings program, investment program and awareness program influence the empowerment of women in Rwanda. R-square is 0.988%, this means that Sacco’s influence women empowerment. The sig value (0.000) less than the level significance (0.05). The F-statistics (F=214.123) is far greater than the P-value (0.000) hence a further confirmation that aspects of lending program, savings program, investment program and awareness program was significantly influenced the women empowerment in Byumba. The finding from the research shows that, working with Sacco’s for women improves the economic independence of majority of women, and enhance their contribution in the household and community. The findings of the study indicate that women in Byumba are empowered by income (used as a proxy for empowerment) generated from investing in loans borrowed from Sacco’s. The study recommends that in order to strengthen the impact of Sacco’s services on empowerment of women in Rwanda, the Sacco’s should train the borrowers on entrepreneurial skills so as to enhance their competence.
Keywords: SACCO institutions, Micro-Finance, economic empowerment.
Title: EFFECT OF SACCOs ON ECONOMIC EMPOWERMENT OF WOMEN IN RWANDA: A SURVEY OF BYUMBA SACCO, IZIGAMIRE SACCO, UMURABYO SACCO AND IMBARUTSO SACCO
Author: ANATHALIE MUKAMUKAMA, Dr. PATRICK MULYUNGI
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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