The Effect of Umurenge Saving and Credit Cooperatives Services on Poverty Reduction in Rwanda The Case of Icyerekezo Mushishiro Sacco (2015-2019) in Muhanga District

Abstract

This study was conducted for achieving these specific objectives; To assess how regular saving deposits services received by Icyerekezo Mushishiro Sacco contribute to poverty reduction of its members, to analyse the effect of credits services provided by Icyerekezo Mushishiro Sacco on poverty reduction of its members, and to analyse if financial advisory services given by Icyerekezo Mushishiro Sacco makes changes on poverty reduction of its members. The targeted population was 3482 active members of Sacco from which a sample of 359 members was randomly selected. In this study, quantitative and qualitative approaches were used where primary data was obtained by the use of questionnaires, interviews, and documentation for secondary data. The analysis of data was done via SPSS.  The findings revealed that 94.7% have a current account where they deposit and withdraw at any time, few from them 4.2 % have a saving account and 1.1% for children. These accounts helped them to accumulated money for different use. The members requested loans and used them in different activities which helped them to fight against poverty. The advisory services provided by Sacco have interacted on poverty reduction as confirmed by respondents. From these findings, the researcher concluded that Umurenge Sacco positively contribute on the poverty reduction of the population in Rwanda. The study recommends that Sacco should reinforce saving education and help every member access financial services especially youth,the members are recommended to continue increasing their saving to enable Sacco to have enough capacity to serve all efficiently. Also, the government of Rwanda is recommended to help Sacco to have IT infrastructure.