Kids in Rwanda Raise Rwf400m in Rare Savings Scheme, Reports KT Press

    KIGALI, RWANDA, November 25, 2015 /24-7PressRelease/ -- In Rwanda children are competing with adults in the push to save more of the money that would otherwise have been used by their parents to buy them gifts. A national campaign is making kids put small amounts in bank accounts as savings, and the scheme has yielded surprising results.

Only 31% of adult Rwandans own a saving account, according to the central bank statistics.

The Rwanda Association of Microfinance Institute (AMIR) has, since 2010 been moving door to door teaching families how to save. The program targeted youngsters.

Jean Pierre Uwizeye, AMIR's program Manager told KT Press the children's program has picked up quickly. "We meet children at school and encourage them to save. The same children convince their parents to save too," he said.

"The idea was to show children that, if your parents give you say Rwf100 for a chocolate, you can save half of it and you end up having enough for your dream project," says Uwizeye.

In 2013, Uwase Noella, 12, and her classmates opened an account at CPF-Ineza, a microfinance institution from Muhanga town.

"When we get a free ride to church, I ask my mother to give me transport fee we would have used and I deposit it on my account," says Uwase.

Uwase has saved Rwf42, 000 so far. The plan is to keep saving until she can buy a computer worth Rwf300,000.

"It will help me do financial exercises, and school assignments," she told KT Press.

By October 2015 CPF Ineza had 4000 accounts with over Rwf110 million in savings.

Of these, 400 belong to children with Rwf15 million combined savings or Rwf37, 000 average for each child since 2013.

Over 60,000 children from 180 schools have opened 4500 accounts, mainly group accounts. They saved Rwf400 million, equivalent to 60% of a district annual tax income in Rwanda.

If a child starts saving Rwf5000 from primary, they will have saved Rwf720, 000 by end of secondary school, 12years later.

CPF Ineza in return, offers a quadruple (Rwf2, 880,000) as a loan at 6% interest, enough for tertiary education in Rwanda where undergraduate programs cost around Rwf2.4 million.

Full article available at: http://ktpress.rw/rwandan-kids-raise-rwf400m-in-bank-savings-3867/

For Media Enquiries
Jean de la Croix Tabaro
KT Press
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