Expanding Economic Opportunity for Rural Women through Micro-Finance Program
Project Description:
CARE International in Rwanda has extensive experience working with members of poor rural communities grouped into associations having an average of 15-20 people. Our expertise is in the sector of economic security, specifically in capacity building, income-generating activities and organisational management of community structures/institutions.At the national level, CARE has set up a system of community-based, savings-led groups (through the USAID-funded CLASSE Project) which allowed project beneficiaries to gain experience in savings mobilization and loan management. This system has permitted CLASSE association members to establish social solidarity, credit histories/reputation, and financial credibility, while providing themselves for their basic needs for financial services. The overall objective of this USAID MF Program is to expand economic opportunities in rural areas through improved access to financial services, especially for women. The association commonly in the form of a group of farmers, is one of the very few manifestations of economic solidarity in rural settings. CARE intends to support the achievement of economic expansion through support to associations by training within general and technical sectors and making services and resources available. The present USAID RFA will allow the merger of the community development world and the micro-finance sector in order to permit widespread access to financial resources. To ensure the sustainability of the project, CARE will assist local partners in controlling and efficiently managing capital contributions as well as in influencing the micro-finance sector that is emerging in Rwanda.Within rural areas, there are typically no micro-financial services despite vast potential demand, as indicated by the strong rural interest in accessing credit. However, the actual demand, in other words the percentage of people who are able to receive credit, is low in light of a lack of knowledge and the fact that income-generating activities are not always profitable.CARE specific objective is to provide institutional and technical support to community-led microfinance institutions and increase the percentage of rural entrepreneurs, especially women, who have access to credit, thereby transforming the vast potential demand into actual demand.
