Rwanda | Muhanga: Why residents fear seeking Sacco services
Some residents of Muhanga district in Southern Province have revealed they don’t seek SACCO services fearing they might make losses like it was with micro finances in previous years.
This was revealed by the residents of Muhanga district during the event to open Sacco Terimbere in Shyogwe sector.
Residents said that they are not sure of Umurenge Sacco’s because they don’t understand the difference between Sacco and Microfinances in Rwanda that brought huge loss to the residents.
Most of the residents say they would rather open accounts in big banks or keep money in their pockets than keeping it in Umurenge Sacco’s.
However, they confess that big banks cannot give them loans they require to start small projects.
Tamali Niyomufasha, an accountant for Sacco Terimbere in Shyogwe sector says that customers do not increase due to false fears that Sacco’s are like micro finances.
Niyomufasha asks the district authorities for support in sensitizing residents on SACCO activities so that they start working with them.
The vice-mayor for economic affairs in Muhanga district, Francois Uhagaze assured residents that Saccos are very much different from micro finances saying their money will be safe.
Uhagaze explained that micro finances were owned by investors but Sacco’s are residents’ initiatives since they are the ones that hold shares in Saccos. The profits belong to the shareholders while bank profits go to the bank.
Every member was asked to contribute Rwf5000 in two phases for the building of Umurenge Sacco Shyogwe.
Umurenge Sacco Terimbere Shyogwe building was started in June 2012 and cost Rwf24.8 million to complete, where residents contributed over Rwf14.5 million.
Sacco Terimbere-Shyogwe has 3863 members but members that qualify to hold accounts with Sacco are over 15000 since one has to be 16 years and above to qualify.