Accelerating financial inclusion in Rwanda

In a bid to accelerate financial inclusion in Rwanda, the country has made remarkable progress over the years. According to the Finscope Survey, 93 per cent of the adult population in Rwanda now have access to either formal or informal financial services. This is a significant improvement from the 48 per cent reported in the initial survey in 2008. With a target of achieving 100 per cent financial inclusion by 2024, Rwanda is on a mission to bridge the gap and ensure that all its citizens have access to financial services. To understand the journey and the strategies employed to reach this point, CNBC Africa had an exclusive conversation with Soraya Hakuziyaremye, the Deputy Governor of the Central Bank of Rwanda. She shed light on the policies and initiatives that have propelled Rwanda towards its goal of financial inclusion. One of the key drivers of this progress has been the advancements in mobile money and digital financial services. The accessibility and ease of use of these services have played a pivotal role in bringing more Rwandans into the formal financial system. The government's interventions, such as the establishment of savings and credit cooperatives known as SACOs, have also played a crucial role in extending financial services to the rural population. Additionally, national strategies focusing on financial inclusion and sector development have paved the way for modernizing the financial sector and promoting financial literacy among the population. The digitization of banking services, particularly the introduction of electronic payment platforms, has further accelerated financial inclusion in Rwanda. This is evident from the significant increase in electronic payments as a percentage of the GDP over the years. The momentum towards achieving 100 per cent financial inclusion by 2024 is strong. Soraya Hakuziyaremye is confident that Rwanda can meet this target by ensuring that even those currently using informal financial services transition to formal financial institutions. Looking ahead to 2027, the country aims to elevate the number of citizens with access to formal financial services to 95 per cent. One area that stands out in Rwanda's journey towards financial inclusion is the empowerment of women. The country has made substantial strides in promoting gender equality and empowering women to participate in leadership roles across sectors. The government's commitment to gender equity has resulted in a notable increase in the number of women in leadership positions in both the public and private sectors. In the financial industry alone, the rise in women leaders, including CEOs in banks and insurance companies, highlights the progress Rwanda has made in promoting female leadership. However, there is still room for improvement, especially in closing the gender gap within institutions and fostering a more inclusive work environment. As Rwanda embraces digitalization and prepares for the impact of automation on the workforce, the focus is on equipping women with digital skills to seize emerging opportunities in the job market. The government's investments in girl's education, particularly in STEM fields, aim to ensure that women are ready for the challenges and opportunities presented by the fourth industrial revolution. In the realm of cross-border trade, where a significant number of women are involved, Rwanda is addressing the challenges faced by these traders, especially in payment systems and access to finance. By promoting the use of mobile money and encouraging women to join cooperatives, Rwanda is enabling women traders to grow their businesses and participate more effectively in the formal economy. Initiatives at both regional and continental levels, such as the Continental Free Trade Area Agreement, are also focused on enhancing trade facilitation and making cross-border trade more seamless. As Rwanda looks towards the future of trade and commerce, efforts to make trade more affordable and efficient are paramount. The African Continental Free Trade Area Agreement aims to remove barriers to intra-Africa trade, with a specific focus on enhancing payment systems. Initiatives like the Pan-African payment and settlement system by Afrexim Bank are pivotal in enabling smooth transactions and promoting the use of local currencies in trade transactions. Moreover, regional initiatives like the East African Payment System are already operational, laying the groundwork for increased trade within the East African community. The push towards using local currencies in regional trade transactions is a significant step towards promoting trade flows within the region and boosting economic integration. Rwanda's commitment to advancing financial inclusion, empowering women, and enhancing trade affordability showcases the country's dedication to fostering a more inclusive and prosperous economy. With strategic policies, innovative solutions, and a focus on gender equality, Rwanda is poised to achieve its vision of a fully financially inclusive society.