Rwanda, as one of the fastest developing countries in Africa, believes that the development of the economy is one fo the key indicators of the government’s prosperity generally. In this article, we shall look at the breakthrough milestones of financial literacy in Rwanda.

Finance contributes to the growth of the economy, which results in the country’s development. Rwanda initiated financial inclusion because they have recognized the value it has in the promotion of the country’s economy. Today will focus on financial literacy and its breakthrough in the country.

The term, financial literacy refers to the capacity to acknowledge financial situations like personal finances by using financial products and services and investing to make meaningful decisions. The government has taken different steps to apply and promote financial literacy without ignoring inclusion according to Access to Finance Rwanda. (2023) Besides, the government has put much strength into developing financial technology( Fintech).   

Source: unsplash.com

The government provided meaningful commitment and support for the promotion of financial literacy. The national bank of Rwanda has been the biggest supporter of the idea. Through collaboration with Access to Finance Rwanda, the Ministry of Finance and economic planning  has developed a national financial education strategy to promote financial literacy by focusing on financial planning, savings, credits, and customer protection.

Financial institutions work hard through campaigns and advertisements to make awareness of financial planning and savings and their impact on families and society. The strategy led to the country’s growth in a significant way, according to the statistics provided by the national bank of Rwanda.

One year after the strategy launch, the saving rates increased from 20% in 2012 to 29% in 2016, and the percentage of adults with banks account goes from 21% in 2012 to 42% in 2018. The strategy provided families with knowledge and skills in managing their finances through saving and investing, resulting in better financial decisions and hope for the future. 

Source: www.minecofin.gov.rw

Financial education programs have also been a booster and a method the Rwandan government used to develop financial literacy for better awareness government used a partnership with the media where finance experts were invited on several shows to talk about the benefits of financial literacy and other topic related to finance, for instance, to provide information and process on how to save for the first time, guiding people who got interested in investing.

Those public programs were being hosted on radio and T.V and According to everyone’s level, parents can save up and support a better life in the future, and adults can access financial services smoothly. Those programs also educated society and provided them with essential information at home without traveling miles to financial institutions.

The programs also facilitated and protected the community in so many ways because, technologically, it is easier to be scammed or get financial fraud. All of the programs and strategies are being conducted by the Ministry of economic planning and Finance (MINECOFIN) with the assistance of the national bank of Rwanda to ensure financial literacy reaches anyone and their financial inclusion all over the country. 

source:www.ktpress.rw

Financial institutions and Telecommunication companies .

Telecommunication companies like M.T.N. and other platforms, as well as financial institutions, have impacted financial literacy and its development. Several experts have developed financial technology according to the evolution of the current technology. For instance, M.T.N. set up mobile money, which has become essential in everyday life and has been going smoothly lately. People can send money out of their current zone or outside the country.

There is also I.R.E.M.B.O., a platform here in Rwanda where every individual can access government services like requesting a driving license or birth certificate. 

Access to Finance Rwanda has also played a significant role as a nongovernmental organization in developing financial literacy by ensuring that the society has full access to basic finance activities like saving. They are helping people understand how they can manage risk and build resilience while investing or saving. The whole idea of access to Finance Rwanda is to help the entire society get the ability to pay for their service digitally without being bothered. 

Financial institutions like G.T.C.O. Plc in Rwanda have made several financial inclusion and literacy. Still, they have devised an innovation of thinking about kids and their prosperity. Parents can save for their children through smart kids’ savings(S.K.S.) accounts.