The Contribution of Saving and Credit Schemes to the Socio-Economic Development of Rwanda (2017-2022) Case Study of Kirehe District

Abstract

The aim of this study was to assess the contribution of saving and credit schemes to the socio-economic development of Rwanda which was conducted in Kirehe district. It was directed by three specific objectives, which were to assess the contribution of saving and credit schemes to the socio-economic development of Kirehe District, to determine factors influencing socio-economic development in Kirehe District and to find out the obstacles of saving and credit schemes in the process of contributing to the socio-economic improvement of Kirehe district and propose possible solution to those challenges. The study utilized a cross-sectional design, incorporating both quantitative and qualitative research methods with a sample of 112 respondents. Data collection involved the use of questionnaires and interviews. Descriptive statistics, including frequencies and percentages, were used for data analysis. Regarding the first objective of this study reveals that saving and credit schemes significantly contribute to socio-economic development in Kirehe District. With unanimous agreement from respondents on their positive impact, the research highlights how these schemes effectively reduce poverty, improve livelihoods, and foster long-term stability. Key benefits include enhanced earnings, and financial empowerment. Participants shared personal success stories, emphasizing the dual role of these schemes in providing economic relief and building community solidarity. For the second objectives, the key factors influencing development include education, employment status, income, community safety, and social support, which collectively drive sustainable growth and improve quality of life. However, challenges such as regulatory hurdles, financial constraints, technological gaps, and governance deficiencies impede the effectiveness of these schemes. Addressing these issues through regulatory simplification, increased funding, technological investment, adaptation to evolving needs, enhanced financial literacy, and improved governance is essential for maximizing the schemes' socio-economic impact. Implementing these strategies can strengthen the schemes' contribution to poverty alleviation and economic development in Kirehe District.