Small savings initiative helps empower Rwandan women

KIGALI, Rwanda

A group of over 500 Rwandan women in the capital Kigali's Gasabo district started a penny-saving scheme that has now grown into startup entrepreneurship, setting an example for others on how women may help themselves overcome poverty and become self-sufficient.

In 2017, the women's group launched the Igiceri, or penny-saving scheme, in which each member was required to save at least a coin of 100 Rwandan francs (about $9 cents) every day in the hopes of bettering their lives, which was a small step toward a larger objective.

They succeeded, and some successful businesses have emerged from this small venture in the last four years, even though their long-term financial goals initially appeared unrealistic owing to little savings, the group’s coordinator Nelly Mukangwije told Anadolu Agency.

“Being educated, we were ambitious and motivated that we could start a small venture and still achieve financial independence,” she said and explained, “We sat down and discussed having something that could keep us together. That is how we came up with the Igiceri, or coin program in the district.”

Each member agreed to save 100 Rwandan francs or about $9 pennies per day at first, but this was eventually increased to 5,000 Rwandan francs per month (about $4) or 166 Rwandan francs per day.

"What mattered was not the amount of money saved by an individual, but the commitment to the long-term goal by saving in the group," she explained.

To strengthen the scheme, the organization eventually invited each member to make a deposit of 120,000 Rwandan francs ($117) share capital, and she explained how the strategy began to function and pushed the area women to save even more money.

So far, 250 members have fully paid the share capital, she said, adding that they have begun placing some of their money in a Savings and Credit Cooperative (Sacco) for three years to earn interest before exploring investment ventures.

Investment in stock market

To increase their chances of success, the group invested in rice cultivation on three hectares of free land provided by local authorities.

However, they have also invested in government bonds in order to minimize their chances of losing money in farming due to unpredictable weather patterns, after multiple seasons of negative results.

"Agriculture is very unreliable, and the weather has not been helpful. That is why, we have shifted to stock markets and bonds, where we have a stable income," Mukangwije explained.

The women have accumulated around 38 million Rwandan francs (approximately $37,366), with over 25 million Rwandan francs (approximately $24,600) invested in government bonds at Rwanda's central bank.

Poverty alleviation

Pelagie Mukamuhizi and her husband Bertin Ntuyahaga, one of the few male members of the community’s coin savings scheme, both voiced their delight when asked about their views on the unique community project.

Mukamuhizi stated that the project has benefited the family in a number of ways.

"Our lives have changed significantly for the better. Not only is my family well-fed, but we can also send our children to school with all required academic resources thanks to the savings scheme," she remarked.

"We used to spend coins carelessly, but after joining the scheme, we began saving them. We utilized our savings as security to get a loan to open our own hairdressing salon, which has been incredibly rewarding," he husband Ntuyahaga said.

Mukangwije, the scheme coordinator, remarked that if all goes well in the coming years, they will consider having their own homes.

"This is my personal opinion, but I'm considering having our own building for office and conference room," she added.

Another member, Josephine Murungi, stated that the savings scheme has helped women's empowerment. It enabled community members to meet the needs of their families, including paying for health insurance.

Another woman, Gaudance Mukagasana, said a treasurer collects the money at the end of the week. "The saved money belongs to the individual, who can withdraw it in an emergency. The point is to avoid wasting money by thinking it is insignificant, yet it can add up over time. The ultimate goal is financial independence," she asserted.

She has encountered no difficulties in her participation in the scheme but instead has witnessed continuous growth and improved living standards for herself and her fellow women.

“I am passionate about this scheme as I see it going a long way in uplifting the lives of rural women,” she said.

The executive secretary of Rwanda's National Women Council, Jackline Kamanzi, lauded the women's savings program, saying it is in line with empowering Rwandan women.

It was a big step toward gender equality and economic empowerment, especially for women, she noted.