Tag Archives: Rwanda

Corporate Management and Customer Satisfaction among Banking Industry in Rwanda (Published)

Corporate Management is all about making sure that decision are made effectively. This impetus towards corporate Management has been due to many factors. For instance, it matters for shareholders as it is a shield against abuse of directors while improving access to capital for the company itself and instilling financial stability in the market. The intent of the research was to assess the relationship between corporate Management and customer satisfaction. The research highlights the corporate Management practices in banks and how that affects customer satisfaction with the operations of Banks in Rwanda. There are a total of 12 banks in Rwanda. Out of the 12 banks, the researcher targeted the most commonly used banks in Rwanda. A total of 6 banks including National bank, Equity Bank, Bank of Kigali, I&M Bank, Banque Populaire(Atlas mara), Keanyan Commercial Bank(KCB). One branch of each of the six banks was chosen and included in the targeted branch population. The study specifically targeted branch managers of the different bank branches and customers in the different branches. Systematic sampling was used in identifying customers to include in the sample. The administered a structured questionnaires to 10 customers in each of the banks. The constituting of corporate boards is done through the involvement of all stakeholder or at least the key stakeholders. Moreover, academic standard are applied leading to the constitution of a qualified and gender sensitive board. However, there is a problem when it comes to sitting and waiting arrangements in the banks. The sitting arrangement and waiting arrangement in most banks in Rwanda is not conducive. The banks perform poorly on reliability because majority of the customers feel the banks do not provide their services in a timely manner. The customers have trust in the problem solving practices in banks. However, the customers believe the process takes long and employees in their banks did not prevent long waiting.

Keywords: Banking Industry, Corporate Management, Customer Satisfaction, Rwanda

Up-grading and Enhancing Sustainable Linkages of Rwanda’s Tourism Value Chains: Opportunities and Bottlenecks (Published)

The Rwandan government’s Economic Development and Poverty Reduction S4trategy II (EDPRS 2, 2013-2018) highlights enhancement of connectivity and linkages within the country’s economy as one of the priority areas for economic transformation. In the highlights, emphasis is put on the need for deepening the integration of key value chains of the economy. After a comprehensive analysis of Rwanda’s global competitiveness, tourism was identified as one of the key sectors that would spur economic development in the country. Important as it is, however, the linkage of this sector to the rest of the economy was found to be weak and hence compromises on its ability to deliver on certain targets as expected. This paper thus identifies opportunities as well as the bottlenecks within tourism value chains in Rwanda and recommends possible solutions. A questionnaire survey was used to obtain data related to visitor expenditure, targeting visitors at land border points and Kigali International airport. Focus group discussions were also conducted in gathering data on value chains analysis and identification of intervention programs that would remove any bottlenecks in the system.

Keywords: Bottlenecks, Rwanda, Tourism, Value Chains, opportunities

An Effective Policy Strategy for Utilization of Fragmented Lands in Rwanda: Land Use Consolidation from Farmers Perspectives (Published)

Land consolidation model have been adopted by the government as a major agricultural transformation strategy in Rwanda, despite the consolidation of farming, a large number of farmers continue to maintain smallholdings and therefore some of the old problems still persist and some new challenges have emerged. This study evaluated effects of land consolidation use among maize farmers in Kayonza district eastern part of Rwanda. Multistage sampling techniques were used to select survey villages and respondents. Data were collected from 213 respondents using structured questionnaire. T-test was used to estimate effect of land use consolidation on yield and level of input usage. The mean difference in yield between adopters and non adopters across all growing seasons  that is 2016A, 2015A, 2015B and 2014B  group were 133.4, 225.1,151.1 and 124.8 kg ha-1.The analysis showed a statistical significant difference between those two groups with P <0.05 at 95% of confidence level. The mean difference in level of input usage between adopters and non adopters across all growing seasons that is 2016A, 2015A, 2015B and 2014B   group were 1607.5, 559.4, 1229.6 and 1828.7 in Rwandan francs. The analysis showed a statistical significant difference between those two groups with P <0.05 at 95% of confidence level. The study concludes that land consolidation is the efficient policy strategy that can improve the welfare of farming communities through effective utilization marginal lands.

Keywords: Kayonza, Land Use Consolidation, Rwanda, Smallholder dairy farmers

Corporate Entrepreneurship Levels in the Midst of Rwandan Enterprises (Published)

Rwanda has for all intents and purposes a mixed economy. The Rwandan government envisions creating a middle-income, knowledge-based society with middle class of entrepreneurs as the moral fiber of development progression. Various scholars have argued that for enterprises to be competitive, they need to undergo corporate entrepreneurship. Whereas others have defined corporate entrepreneurship as a term used to describe entrepreneurial behaviour inside established mid-size and large organisation. For corporations to improve: Entrepreneurial intensity is required. Entrepreneurial intensity (EI) is considered to be of supreme substance for success of corporate enterprises. To help researchers and lecturers blend the growing body of knowledge, this paper investigates the EI principles of innovativeness, proactiveness, risk-taking, entrepreneurial management style and perceptions to whether have an impact on corporate entrepreneurship (CE) among enterprises in Rwanda. A mixed method approach using qualitative and quantitative approach was employed for testing the hypotheses. In-depth interviews with 156 top executives of well known enterprises in Rwanda were conducted. The interview findings indicated that CE was found to be lacking in diverse enterprises consequently several businesses have struggled to keep up profitability. Thus, the paper seeks to address this gap. Furthermore, the paper provides directions and suggestive thoughts for future research

Keywords: Corporate entrepreneurship, Innovativeness, Rwanda, entrepreneurial intensity, entrepreneurial management style, model for entrepreneurial development, proactiveness, risk-taking

Adaptability and genotype by environment interaction of maize commercial hybrid varieties from East African seed companies in Rwandan environments (Published)

Maize (Zea mays L.) has known an unprecedented development for the past six years in Rwanda.  The major factor behind this great achievement was the Crop Intensification Program (CIP).  However maize hybrid varieties had little impact on maize production increase because they were not available. Therefore, this study was undertaken to assess the adaptability of maize commercial varieties from East African seed companies in Rwanda and to identify those to be used to increase maize production.  Fourteen commercial hybrids, four hybrid cultivars released in Rwanda and five Open Pollinated Varieties (OPVs) were evaluated in four sites of mi-altitudes (18 entries) and four sites of highlands (10 entries). Results showed that RHM104, PAN53, PAN67, WH507, WH505, WH403 and RHM101 in mid-altitudes and H629, SC719, SC637, PAN691 and WH504 in highlands were high yielding and stable across environments. They were recommended to be used in Rwanda.

Keywords: AMMI, Commercial Varieties, Grain Yield, Highlands, Mid-Altitudes, Rwanda

Effect of Village Savings And Loan Associations on Small and Medium Enterprise (Sme) Growth in Rwanda: Survey of Kayonza District (Published)

The research purpose was to examine the effects of Village Savings and Loan Associations on the growth of Small and medium enterprises in Rwanda because despite the contribution of Rwandan Government supported the establishment of Village Group Savings Cooperatives as a way of providing financial accessibility to rural Rwandans who cannot afford big loans from the banking institutions in order to support their micro business, performance of SME’s in the rural areas is still low (RDB report 2014). The researcher achieved this research by use of three specific objectives namely; To analyze the effect of credit/ loans on growth of SME growth in Kayonza District; To examine the effect of training and advice on investment on SME Growth in Kayonza District; and to analyze the capital formation on SME growth in Kayonza district. The research is beneficial to the researcher, SME’s, government and JKUAT. The researcher reviewed both theoretical and empirical literature on the effect of Village Savings and credit cooperatives on SME’s performance. The researcher used descriptive method of study based on qualitative and quantitative approach in order to get better analysis of the study. The population size is 884 and sample of was taken. Both primary and secondary sources with their relevant tools like questionnaire and documentary analysis in order to come up with required data. In the findings it was established that Kayonza district has got various credit/ loan services, Training and Advice on Investment services and Capital formation (savings) services. Credit/ loan services includes;  provision of  required amount of loan to the clients, provision of  loan to the clients within a short time, provision of  loan without collaterals but members guarantee, provision of  the loan to the clients at a low interest rate and provision of  loans to the clients with flexible repayment schedule depending on one’s earnings. Training and Advice on Investment services which that include; provisions of investment briefings on terms and conditions of the loan before acquiring loan, provision of investment seminars and workshops to members, provision of tour to successful members business before loan is awarded to clients, VSLA also make follow up visit to their clients in order to provide business advice on monthly basis and they have created members working team who are guarantors and advisors. Capital formation (savings) services which ensures that that VSLA in Kayonza District make clients contribute monthly or weekly to the group savings, savings contribution is managed through rules and procedures, contributed fund is kept safe, clients to divide the saved funds at an agreed interval and clients has a right to refund once he withdraws from the saving group. These services positively influence the SME growth in Kayonza District in the sense that VSLA services has increased capital base increased of members business, increased profitability of the business, made business expand its branches, made members business acquire assets, made members business cash flow to improve and above all VSLA savings has made my progress from hand to mouth to planning for the future. This was justified by table 4.15 which showed the relationship between Village Savings and Loan Associations (VSLA) and SME growth in Kayonza District whereby the respondents N is 366 and the significant level is 0.01, the results indicate that independent variable has positive high correlation to dependent variable equal to .673** and the p-value is .000 which is less than 0.01. When p-value is less than significant level, therefore researchers conclude that variables are correlated and null hypothesis is rejected and remains with alternative hypothesis. This means that there is a significant relationship between Village Savings and Loan Associations (VSLA) and SME growth in Kayonza District. We can therefore conclude Village Savings and Loan Associations (VSLA) contribute to positive SME growth in Kayonza District.


Keywords: Financial Accessibility, Growth, Loan, Rwanda, Savings, Small and Medium Enterprise (SME), Village

Effect of Supply Chain Integration Strategies on Performance of Pork Processing Industry in Rwanda (Published)

Supply chain integration (SCI) is a useful approach to improve various measures of firm performance. The aim of this study is to evaluate the impact of supply chain integration strategies on performance of pork processing industry in Rwanda. The study employed a quantitative research design in order to address to the research objective. The target population was the 52 employees of German butchery in Kigali. Due to the small size of the population, there was no need of sampling. Therefore all the 52 employees were obtained through census method and were recruited to the study. Questionnaires were used to collect information regarding internal integration, supplier integration, customer integration and performance of the firms. Questionnaires were distributed through drop and pick method to avoid inconveniencing the respondents during working hours. Data collected was edited and analysed using SPSS. The results indicated that there was a positive and significant correlation between internal integration, supplier integration, customer integration and performance of the firm. The study was about the impact of customer integration, supplier integration and internal integration on pork industry. The study recommended that the industry managers should ensure that the extents of integration of the three variables are enhanced. The study further recommended that a study that will assess the challenges affecting supply chain integration in the pork industry should be conducted in the future. Future study that will assess the barriers of implementation of supply chain integration strategies in pork industry was also recommended.

Keywords: Industry, Pork Processing, Rwanda, Strategies., Supply Chain Integration

Effects of Project Resource Planning Practices on Project Performance of Agaseke Project in Kigali, Rwanda (Published)

The effectiveness of Project Resource planning can be measured in terms of the extent to which it influences project performance or project implementation. The Research topic tries to assess the effects of project resource planning practices on project performance of Agaseke project in Kigali city in Rwanda. The general objective of this study was to assess the effects of Project strategic planning on project performance. Specific objectives of the research were to determine the effects of human resources planning practices on Agaseke project service quality, to analyse the effects of financial resource planning practices on the Agaseke project and to analyse the effects of Material and time resource planning practices for timely implementation of Agaseke project. The research design to this study employs a Cross-sectional study design that uses both quantitative approach. The target population of the study is all women who are members of Agaseke Project in the city of Kigali in Kicukiro, Gasabo and Nyarugenge districts estimated to be 3,800 women. Purposive sampling technique was employed for a target group of 400. The sample size of the research is 120 respondents. Questionnaire was used in order to collect primary quantitative data will a focus group discussion in-depth interview guide would be used to collect qualitative data. Quantitative data will be analysed by use of SPSS version 16.0 will narratives of themes and sub themes was used to analyse qualitative data. Information from primary data will be presented using Graphs, bar charts, tables and pie charts. Ethical issues will be sort out from the Kigali City administration to carry out the research with Agaseke project members while Jomo Kenyatta university of Agriculture and Technology authorised me through a signed letter to enable the research to be carried out. An informed consent form will be given to each participant to sign before participation in this research.

Keywords: Agaseke, Project, Project Performance, Resource Planning, Rwanda

An Assessment of the Factors That Affect the Financial Performance of the Cross-Listed Companies in the Rwanda Stock Exchange (Published)

This research study entitled An Assessment of the Factors that Affect the Financial Performance of the Cross-Listed Companies in the Rwanda Stock Exchange aimed at assessing the factors that affect the financial performance of the cross listed companies on the RSE. As a guidance, the research examined the relationship between the level of awareness of the market by the public and the financial performance of cross-listed companies in RSE, assessed how the regulation framework affect the financial performance of the cross-listed companies on the RSE feature, and finally determined how technology affects the performance of cross-listed companies. The companies under consideration were the primary stakeholder of the RSE totalling to 14 firms which included Capital Market Authority, Rwanda Stock Exchange, the 9 brokerage firms and the 3 cross listed firms in the RSE employing 97 workers. Through a descriptive survey design, a sample size of 67 participants were selected from the 97 workers and 100 other informants identified purposively and their responses to various data collection tools particularly questionnaires and interview guides captured for analysis. The data were analysed through Hermeneutics, Thematic analysis, and Multiple Regression techniques to answer the questions that the research ventured out to investigate. The result of the analysis showed that there was a negative correlation between awareness and financial performance of the firms, regulation framework was positive and significant with r (67) = .684, P = .037, while technology correlated with r = .506, p = .094. Market capitalization of the domestic companies was larger than that of cross-listed, and return on equity of the domestic firms was better than for the cross-listed companies. Generally the cross-listed companies did not perform any better than the domestic firms though overall the public awareness, technology and regulation framework positively correlated with financial performance of the cross-listed firms. The recommendation is that more awareness strategy needed to be devised so as to increase public awareness of investors and cross-listing companies need to be motivated by other factors other than making profits when choosing.

Keywords: Capital market, Financial Performance, Market Capitalization, Rwanda, profit, stock exchange

The Role of Financial Literacy on Loan Repayment among Small and Medium Entrepreneurs in Rwanda Case Study: Urwego Opportunity Bank (Published)

The purpose of this research was to examine the impact of financial literacy on loan repayment in Rwanda because previous research suggests that many people lack the skills needed to calculate expected returns or present discounted values, which may cause them to make suboptimal financial decision and yet financial literacy skills enable individuals to navigate the financial world, make informed decisions about their money and minimize their chances of being misled on financial matters. The research was focused on small and medium entrepreneurs in Urwego Opportunity Bank. The researcwh was significant in various ways to individuals/bank clients, investors. Financial literacy therefore is regarded as one of the strategies used by bankers to provide knowledge and skills needed to change attitude and attract more potential users of agent banking. Financial literacy levels amongst SMEs are far too low to deal with the complexities of the matter. The quality of financial information available for financing institutions is rather poor. Credits decisions become difficult and collateral requirements as well as interest rates are high, substantially aggravating access to credit. Controlling the Loan Book is equally difficult. Indeed, banks in Rwanda are increasingly facing non-performing-loans particularly from SMEs. The impacts on the Rwandan economy – almost 90% of all enterprises in Rwanda are micro-enterprises, according to a recent PSF business. The combinations of smaller en¬terprises without access to cash to grow their business and banks, which are increasingly reluctant to lend to smaller clients, hamper much needed economic and social development

Keywords: Financial literacy, Loan Repayment Small and Medium Entrepreneurs, Opportunity Bank, Rwanda, Urwego

Business Environment and the Growth of Foreign Direct Investments in the Information and Communication Technology Sector in Rwanda in 2012 – 2013 (Published)

This research work was carried out to examine the extent to which improved business environment contributed to the growth of Foreign Direct Investments in the Information and Communication Technology sector in Rwanda in 2012-2013. Rwanda continues to undertake reforms towards making the country a favorable place for investment. On the 2014 World Bank “Doing Business” report, the country was ranked as the 2nd most improved in the world and the second easiest place to do business in Africa. In 2012, Foreign Private Capital inflows to Rwanda increased by 14.8 percent to $ 409.3 million compared to $356.6 million recorded in 2011. The capital inflows were dominated by Foreign Direct Investments, amounting to $ 255.0 million, and accounting for 62.3 percent of total inflows. The Information and Communication Technology sector attracted the highest flows (41.2%). The study established that, the improved business environment moderately influenced (Pearson correlation coefficient of 0.537and significance -2 tailed- of 0.35), the attraction of Foreign Direct Investments to the Information and Communication Technology sector in Rwanda in 2012-2013. Regulations which improved the ease of establishing business operations, security, growth and sustainability of investments had the highest influence on foreign investors in choosing Rwanda as their investment destination. These covered the areas of good governance, good macro-environmental factors, investor protection, ease of getting credit, ease of starting a business and enforcement of contracts ranked among the top six influencers, in that order, by over 91% of the foreign investors. Insolvency resolution was found to be of great importance particularly to the large foreign investors (above Rwf 75 million in equity investments and turnover above Rwf 50 million as per the World Bank 2014 report) who required a clear exit plan. 50% of these investors ranked the indicator in the upper quartile of the most influential variables. Untapped business opportunities attracted three large multi-nationals to the Information and Communication Technology sector and contributed to the impressive growth of Foreign Direct Investments registered in the Information and Communication technology sector. Publicity by the World Bank Doing Business report, of the impressive transformation and commitment to lower the cost of doing business that was demonstrated by Rwanda, was found to have created considerable interest among 40% of the foreign investors selected. The study adopted a cross-sectional survey and descriptive research design and both secondary data and primary data were utilized. Questionnaires were administered accompanied by interviews to obtain accurate information from the selected sample. Statistical Package for Social Sciences (SPSS) was used for correlation analysis while Microsoft Excel was used for the listing, ranking and analysis of variables. The tools of summarization of data were statistical tables, histograms, line charts and bar charts. For the qualitative data, simple listing of suggestions, factors and other itemized variables was adopted. Pearson correlation was used to study the relationship between the business environment and the level of Foreign Direct Investments registered.

Keywords: Business Environment, FDI, ICT, Rwanda


This study aimed at analysing the role of reporting non-financial information in the decision making of private institutions in Rwanda. A conceptual framework indicating interaction between variables was drawn. The independent variable that is Reporting of non-financial information was measured by environmental reporting, governance reporting, sustainability and employee satisfaction. The dependent variable that is decision making was measured by increase in market share, customer satisfaction, quality management, environmental protection. A positivism and phenomenological approach was used in the study. A multi-strategy that triangulates different research strategies was adopted. Data was collected from both primary and secondary sources using questionnaires, interviews and on desk research. A population of 20 companies was taken from which 12 companies were selected purposively. Results indicated that non-financial information plays a very important role in the decision making. Results revealed that non-financial information helps managers in making decisions about market share, quality management, and environment protection. Based on the results the researcher concluded that non-financial information should be part and partial of management reports. In the view of the importance of financial information in the decision as indicated by various scholars in the previous studies, coupled with the increased importance of non-financial information, the researcher developed a balanced scorecard model that integrates both financial and non-financial information in the decision making of private institutions

Keywords: Decisions Taken, Non-Financial Information, Private Institutions, Rwanda

Savings And Credit Cooperatives (Sacco’s) Services’ Terms and Members’ Economic Development in Rwanda: A Case Study of Zigama Sacco Ltd (Published)

The purpose of the study was to find out the contribution of SACCO services’ terms on members’ economic development using ZIGAMA as a case study. The study was based on three specific objectives, that is, to examine the nature of services’ terms at ZIGAMA, to assess the effect of savings services’ terms on members’ economic development at ZIGAMA and to analyze the effect of credit services’ terms on members’ economic development at ZIGAMA. To achieve these objectives, the study adopted a cross sectional, correlational and survey research designs. Data were collected through questionnaires, face to face interviews and observation methods. Data were analyzed by use of statistical methods, (descriptive statistics, Correlations and regressions analyses). The findings revealed that ZIGAMA attaches terms on its services which are annually reviewed by its board members. The services’ terms however are not properly communicated to members. Further, results indicated that savings services’ terms were moderately favorable to members and there was a strong positive and significant relationship between savings services’ terms and members’ economic development and also a significant influence of saving services terms on members’ economic development. Results also indicated that credit services terms were also moderately favorable to members and there was a strong positive and significant relationship between credit service terms and members’ economic development and also a significant influence of credit service terms on members’ economic development. It was concluded that ZIGAMA had services terms in place but were not being communicated properly to members and their review was not involving all stakeholders. It was further concluded that SACCO’s services terms significantly predict variations in members’ economic development. Recommendations were that ZIGAMA should involve all stakeholders in the review of the service terms and the same terms should be properly communicated to all those concerned and should allow its members to withdraw their savings as needed and the minimum balancee should be friendly to the members.

Keywords: Economic Development, Members’, Rwanda, Savings And Credit Cooperatives (Sacco’s) Services, Zigama Sacco Ltd, ’ Terms

E-Banking and Performance of Commercial Banks in Rwanda A Case of Bank of Kigali (Published)

The purpose of this research was to examine the contribution of E-banking towards banking on performance of banking Institutions in Rwanda because according to National bank of Rwanda (NBR Report, 2012) there is delay in payment of checks between banks; time wasted in banks as people line in queue waiting for service, errors as a result of manual work and fraud related cases was common. Bank clients complain of the above hence the researcher was interested to examine the contribution of this system to banking efficiency in Rwanda. The study used descriptive research design by basing on qualitative and quantitative approach in order to get better analysis of the study. Both primary and secondary data collection tools were used with their relevant tools like questionnaire and documentary analysis in order to come up with required data. In the findings it was established that Electronic banking system like ATM, Pay direct, electronic check conversion, mobile telephone banking and E transact has a great impact on bank performance because they increase profitability, reduce bank cost of operations, and increase bank asset and bank efficiency. The great contributions of e banking on banking performance is shown in table 4.21 which provides the relationship between E banking and Performance of bank of Kigali in Rwanda whereby the respondents N is 44 and the significant level is 0.01, the results indicate that independent variable has positive high correlation to dependent variable equal to .656** and the p-value is .000 which is less than 0.01. When p-value is less than significant level, therefore researchers conclude that variables are correlated and null hypothesis is rejected and remains with alternative hypothesis. This means that there is a significant relationship between E banking and Performance of bank of Kigali in Rwanda. As conclusion E banking contributes to positive performance of banks as witnessed by of bank of Kigali.

Keywords: Bank of Kigali, Commercial Banks, Rwanda, e-Banking