Rwanda | Teacher’s saving scheme makes profit of Rwf700M
Saving Schemes in Rwanda, commonly known as Umwalimu Savings and Credit Cooperatives (SACCOs) have announced a profit of almost 700,033,594 Rwandan francs in the year 2011.
The bank announced its balance sheet, as part of the financial institutions requirements to publish their financial performance annually. Other banks have also declared their ranks.
Jean Marie Vianney Nzabahimana, the SACCO’s chief manager said that despite its late payment loan of Frw1,143,680,370 in 2011, the institution has managed to make a remarkable achievement profit of Frw700 million.
He explained that the late payment of the loan was due to the loans given to teachers, who failed to pay on time and apparently are unable to pay back the loans.
Some teachers however have raised complaints about the outdated payment mechanism which is delayed and doesn’t respond to their needs and market price demands.
Mukamuhoza Vérédiana, a headmistress at Nyabyondo Primary school in Burera District, says that this process is the major obstacle that hinders them from developing. She says many teachers fail to get married because of poverty and inability to pay house rents.
However, Nzabahimana says that there are plans of a new and modern way of sending and transferring money (cash express), which will start with the first ten role model sectors in the country.
A teacher makes a complete contribution of Frw10.000, and a monthly contribution of Frw2000, and insurance of Frw300 in case he/she loses a relative.
A teacher with working experience of 5 years is paid an amount of Frw 38.000. Frw 44.000 to a teacher with the working experience of 10 years. Teachers get the final payment after subtracting health and retirement insurance.