College of Business and Economics

Financial literacy and investment performance in Rwanda. Case study: Kamembe City investors

2026-04-15T12:11:39Z

Financial literacy and investment performance in Rwanda. Case study: Kamembe City investors Hatunguramye, Theogene While financial literacy has been widely studied globally, limited research exists on its impact on investment performance in emerging economic hubs like Kamembe city, Rwanda. This study fills this gap by examining how financial literacy influences investment decisions and performance among local investors, providing context-specific insights for policymakers and financial educators. The research was motivated by the growing recognition that financial literacy plays an important role in determining investment decisions, improving financial well- being, and enhancing resilience in times of economic uncertainty. The specific objectives of the study were to assess the level of financial literacy among investors, evaluate their investment performance, and evaluate the effect of financial literacy on investment performance. A mixed-methods approach was employed, combining quantitative data from a structured questionnaire administered to 150 investors. The quantitative data were analyzed using descriptive statistics, correlation, and regression analysis in SPSS. Key indicators assessed under financial literacy included knowledge, skills and behavior specifically on budgeting, saving, borrowing, and investing. Investment performance was measured using return on investment rate and sales growth rate. The findings revealed that most investors possessed a moderate level of financial literacy, with the majority scoring between 3 and 4 on a 5-point scale. Investment performance , most investors were generally moderate performers with 41%, the best high performers cover 22% and the rest of 37% are qualified as low performers. A significant positive correlation (r = 0.291, p < 0.01) was found between financial literacy and investment performance. Regression analysis confirmed that financial literacy significantly predicts investment performance (R2 = 0.085, p < 0.001), supporting the study's hypothesis. The study also explored investors’ experiences with financial distress, showing that while a large number faced financial challenges, many overcame them through strategies such as borrowing, selling assets, and diversifying business activities. The study has important implications for policymakers, educators, and financial institutions aiming to strengthen financial literacy programs to foster sustainable investment growth and economic empowerment. Master's Dissertation

Determinants of consumers'willingness to purchase green products- A case of green foods

2021-06-15T08:54:14Z

Determinants of consumers'willingness to purchase green products- A case of green foods Namusoso, Eric Isaac The main objective of this study is to examine the determinants of consumers’ willingness to purchase green products. The study applied a non-experimental design called descriptive survey research design. The target population for this study were of green foods consumers in Kigali City, particularly at Simba Supermarket which is the largest outlet with green foods. The study population is 140 respondents. Based on this sales annual report, 60 respondents were selected at the Main branch in Kigali while 40 respondents each where selected the two (2) branches of Kicukiro and Kimihurura. According to Krejcie and Morgan’s 1970 table, for a population of 140 respondents, a sample size of 103 respondents were obtained. A sample size of 103 respondents was obtained using a non-probability type of sampling called convenience sampling. This study used open-ended and close-ended types of questionnaires as the data collection tools to be used by the researcher. The data collected was first edited for uniformity, precision, wholeness, consistency and was later arranged to enable tabulation coding before the final analysis. The data was then entered into a computer program called Statistical Package for Social Sciences (version 21) for analysis and interpretation. Descriptive analysis was used to analyse the data received from the respondents. Chi-square test and a multivariate linear regression model was further used to examine the relationship between the dependent variables and the set of independent variables at 95% level of confidence. Study results revealed that that the majority of the respondents who took part in the study purchase green foods, have the ability to distinguish green foods from non-green foods and mainly purchase fresh foods. Study results further revealed that the majority of the respondents who took part in the study purchase green foods from supermarket and they purchase green foods for between 1-2 times a weeks. Furthermore, the study results show that majority of the respondents agreed that they appreciate the package of green foods with a mean of 4.0 and a standard deviation of 0.331. Last but not least, chi-square results and multivariate linear regression model revealed that there is a significant relationship between income level, education level, green product price and consumer’s willingness to purchase green foods at 5% significance level. The study therefore recommends that environmental education campaigns closely linked with daily life, having a more participatory approach can help in the promotion of environmental knowledge and strengthening the consumer behavior towards the purchase of green foods. Master's Dissertation

Non-performing housing loan and financial performance of selected commercial banks in Rwanda (2015-2019)

2021-06-15T08:51:31Z

Non-performing housing loan and financial performance of selected commercial banks in Rwanda (2015-2019) Murenzi, Aloys The purpose of this research was to measure the influence of non-performing housing loans on financial performance of selected commercial banks in Rwanda (BPR, BK, and ECOBANK). The first objective was to examine the level of non-performing housing loans among the selected commercial banks in Rwanda, the second was to determine the financial performance of those banks and the third was to establish the influence of non-performing housing loans on the financial performance of selected commercial banks in Rwanda from 2015 to 2019. The study was entirely quantitative. Data was collected from secondary sources mainly published reports of the three selected commercial banks. Panel data was subjected to multiple linear regression analysis to measure the influence of gross NPHL and net NPHL on financial performance of the selected commercial banks. The study found out that the average rate of the gross nonperforming housing loans has been slowly reducing from 5.53 in 2015 to 4.36 in 2019. Whereas the average rate of net nonperforming loans has gradually and slightly reduced from 2.2 in 2015 to 2.1. This gradual decrease indicates that defaulting loans in the housing sector has been gradually declining. It was found out that average return on asset has not been high for the first three years. In 2015 it was 1.5 and gradually increased to 4.47 by the year 2019. The average return on equity has gradually increased from 9.7 in 2015 to 11.53 by the year 2019. The study revealed that the average net interest margin for the selected commercial banks has been gradually increasing. The average net interrest margin was 6.6 by the year 2015 and increased to 9 by the year 2019. This increase is an indicator of improvement in the financial performance of the concerned commercial banks. P. values (0.004, 0.006, and 0.014) from coefficients tables for return on equity, return on asset, and net interest margin were far less than the level of significance 0.05. Therefore, a decision was made to reject the null hypothesis and a conclusion was made that there was a liner relationship between nonperforming housing loans and return on asset, return equity and net interest margin. This means that in the selected commercial banks, the declining nonperforming housing loans had a positive influence on return on equity, return on asset and net interest margin. This implies that if nonperforming housing loans continues to decline, the return on equity and net interest margin will also increase. Master's Dissertation

The effect of entrepreneurial capacity on the SMES growth in Kigali City

2020-06-22T13:19:11Z

The effect of entrepreneurial capacity on the SMES growth in Kigali City Umutoni Rukamba, Shakilah The purpose of this study was to find out the effect of entrepreneurial capacity on the SMEs growth in Kigali city. It was conducted under the problem that various SMEs are mushrooming in Rwanda and various policies for facilitating their growth, including capacity development have been put in place by the government. Various literatures show entrepreneurial capacity as leading to SMEs growth but the literature doesn’t illustrate whether this also applies in Rwanda. This leaves a gap it prompted the researcher to fill this Kigali city was the study area and Gasabo district was the specified area of data collection. Data collection was restricted to the effect of the entrepreneurial capacity on the SMEs growth. This study was designed as descriptive-correlational. The study population was all the SMEs (32619) in Kigali city. Purposive sampling was used to select one district from Kigali city. Gasabo district was then selected using simple random sampling from the three districts constituting Kigali city. Sample size of 133 was determined using Slovene’s formulae. 133 sampled respondents were determined using simple random sampling, but only 89 responded. Both secondary and primary data were collected. Secondary data was collected through the review of the existing literature and studies related to this study. A structured research instrument was designed to collect quantitative primary data. Content validity was applied to check whether the content of the instrument was valid. The instrument contained items that collected data basing on each research objective. Collected data was analyzed in SPSS using descriptive statistics, correlation analysis where Pearson moment correlation coefficient was used to establish relationships and the level of significance was set at 0.05; and regression analysis which established the predicting variables. Results from the analyzed data indicated that entrepreneurs had the capacity to grow their businesses, possessed knowledge and skills obtained from various experiences/domains, the majority never got chance to attend trainings on how to run their businesses and trainings were needed in the fields of customer care, financial management, as well as trainings were needed in the fields of customer care, financial management, as well as how to make production; the entrepreneurs’ capacity of various kinds impacted positively the growth of SMEs; entrepreneurs were challenged by lack of mortgage, collaterals, high and many taxes, as well as high rent; the growth of SMEs was related to the capacity skills obtained from various domains, including natural knowledge and skills (.378*); and, the best predictors of SMEs growth included, among others, capacity skills being prerequisite to any business startup; and, without the capacity skills, businesses would vanish. From the study findings, it was concluded that entrepreneurial capacity had effect on the SMEs growth in Kigali city. The study recommended that capacity trainings be offered to all entrepreneurs ; and taxes be reduced.