UMWALIMU SACCO Profile Magazine
Issue 01/2015
Financing Teachers’ Path To Prosperity
We Finance Teachers’ Income Generating Projects. CONTACT US:
UMWALIMU SACCO P.O Box 2257, Kigali, Rwanda Tel.: (+250) 252580426 Fax: (+250) 252580426 E-mail: sacco_umwalimu@yahoo.com Website: www.umwalimusacco.co.rw
FOREWORD FROM THE CHAIRMAN........................................ 4 BACKGROUND.......................................................................... 5 ORGANISATIONAL STRUCTURE............................................... 6 STATEMENTS............................................................................ 7 GOVERNANCE........................................................................... 8 SENIOR MANAGEMENT TEAM................................................. 9 BRANCH NETWORK.................................................................. 12 PICTORIAL .................................................................................16 IMPACT ASSESMENT SURVEY.................................................. 18
10
Contents 21
TOTAL ASSETS 40000000000
35000000000 30000000000 25000000000 20000000000
TOTAL ASSETS
15000000000 10000000000 5000000000 0 2009
PRODUCTS UGANDA
Rubavu
Nyagatare
Burera
Gicumbi
Nyabihu
Gakenke
2011
2012
2013
2014
KEY PERFORMANCE STATISTICS
DEMOCRACTIC REPUBLIC OF CONGO Musanze
2010
13
29
Gatsibo
Rulindo
Kayonza
Gasabo
Muhanga
Kamonyi
Nyarugenge
Ngororero
Rutsiro
Kicukiro
Rwamagana
Karongi Ngoma
Ruhango Bugesera
Kirehe
Nyanza
Nyamasheke Nyamagabe Huye Rusizi
Gisagara
BURUNDI
TANZANIA
Nyaruguru
EVOLUTION OF UMWALIMU SACCO STAKEHOLDERS SPEAK OUT
22
Published by: VISION MEDIA LTD Tel: (+250) 788 58 1321 Email: info@visionmedia.rw www.visionmedia.rw
TEACHERS’ TESTIMONIES
Editor: Bosco K. Hitimana Email: bosco@visionmedia.rw On Behalf of UMWALIMU SACCO
Disclaimer The views expressed in this publication are not neccessarily shared by the publisher. Vision Media Ltd cannot warrant that all information herein is complete and accurate.
Foreword from Board Chairman
Umwalimu SACCO marked its ninth anniversary on June 26, 2015. For the past nine years, the Teachers’ Savings and Credit Cooperative(SACCO), an initiative of His Excellence the President of the Republic of Rwanda, Paul Kagame, has dignified the lives of Teachers through innovative and affordable financial services which cannot be found in any other financial institution in Rwanda. Created for the Rwandan Teachers mandated to empower them towards uplifting of their social and economic welfare and to contribute to socio-economic development of the community in which they live, Umwalimu SACCO has started to become a solution to the Rwandan Teachers. Umwalimu SACCO has evolved over time and its impact is enormous. The SACCO has been able to bring together teachers to work towards improving their welfare and it has decentralized its services to serve all of its members in all the 30 districts of Rwanda. The Cooperative has expanded its services closer to the members by partnering with 416 Umurenge SACCOs in regard to money transfer services using modern technologies in the pursuit to increase the member’s access to diverse financial services. The SACCO currently has over 88,701 members. Currently, Umwalimu SACCO has a teacher representative at the sector, cell level and at the school center. This representation at the grassroots level helps to strengthen oversight of the SACCO’s operations. At a macro level, Umwalimu SACCO is made up of a single market segment (Rwandan teachers).
4
Profile Magazine
However, at a micro-level, Umwalimu SACCO’s members are mainly divided into those in public and private schools; and those in primary and secondary schools. Umwalimu SACCO has the General Delegates Assembly as the Cooperative’s supreme organ (of 416 members; One teacher per sector) which convenes thrice a year unless otherwise. The General Delegates Assembly lays the Cooperative’s strategic direction and oversight through a duly elected Board of Directors of five members (One board member per Province and District) and the Supervisory committee composed of three members. The Board of Directors hires a professional management team headed by the Managing Director supported by departmental heads. This team is responsible for the day-to-day running of the SACCO. As a financial institution, Umwalimu SACCO fully complies with the Central Bank’s regulations and the Rwanda Cooperative Agency because it is a Cooperative. As we celebrate the 9th Anniversary, I invite you to read our journey as it is carefully documented in this Profile Magazine. I wish you a happy reading!
Jean-Marie Vianney NZAGAHIMANA BOARD CHAIRMAN
Issue 01 / 2015
Background UMWALIMU SACCO is a Savings and Credit Cooperative for the Rwandan Teachers mandated to empower the members towards uplifting of their social-economic welfare and to contribute to socio-economic development of the community in which they live. The establishment of the SACCO was the initiative from His Excellence the President of the Republic of Rwanda Paul KAGAME. Both the Ministry of Finance and the Ministry of Education were charged with the responsibility of having the idea implemented to improve social economic situation of teachers by financing their income generating projects with a low interest rate. This would contribute to teacher retention, stability, effective curriculum instruction, and may cause positive multiple effects in the community development through small business interactions, joint ventures and other services and skills that may be offered by motivated teachers. UMWALIMU SACCO was accepted by the Ministry of Commerce, Industry and Tourism as a cooperative on 21st June 2006 and given license to operate by the Central Bank (BNR) on 22nd February 2008.
SERVICES OFFERED • Mobilization of Savings from members • Provision of credit to members • Offering basic front office banking services • Provide safe custody for the members’ savings • Offering business training and play advisory role to members • Perform any other activities deemed necessary and in line with interests of the cooperative members
OWNERSHIP, CONTROL AND OPERATION UMWALIMU SACCO is wholly (100%) owned by its members (teachers) who subscribe to the SACCO’s principles, values and have fully paid their membership fees. At a macro level, UMWALIMU SACCO is made up of a single market segment (Rwandan teachers). However, at a micro-level, UMWALIMU SACCO’s members are mainly divided into those in public and private schools; and those in primary and secondary schools. This segmentation is necessary as the teachers in those two sectors have varying incomes, hence being the reason as to why the interest rate applied on public school teachers for the income generating project loans and mortgage is 11% per annum and 14% per annum for private school teachers and others. UMWALIMU SACCO has the General Delegates Assembly as the Cooperative’s supreme organ (of 416 members; One
Profile Magazine
Umwalimu SACCO Head Office teacher per sector) which convenes twice a year unless otherwise. It lays the Cooperative’s strategic direction and oversight through a duly elected Board of Directors of five members (One board member per province and District) and the Supervisory committee composed of three members. The Board of Directors hires a professional management team headed by the Managing Director supported by departmental Directors. This team is responsible for the day-to-day running of UMWALIMU SACCO. As a financial institution, UMWALIMU SACCO fully complies with the Central Bank’s regulations and the Rwanda Cooperative Agency because it is a Cooperative. UMWALIMU SACCO has a network of 30 branch offices operating from all the country’s 30 district offices. The Cooperative has expanded its business closer to the members by partnering with 416 UMURENGE SACCOs in regard to money transfer services using modern technologies in the pursuit to increase the member’s access to a diversity of financial services. Umwalimu SACCO covers all charges for enabling Umurenge SACCO to be linked to Umwalimu SACCO server. The Cooperative currently has over 75, 746 members and has disbursed a cumulative loan amount of Rwf 83,757,205,962 as of 31 December 2014 where the biggest portion has been invested in construction and small businesses. UMWALIMU SACCO has an asset base of Rwf 35, 588,586,343 as of 31 December 2014. UMWALIMU SACCO will continue to mobilize funds from other financial institutions in order to finance teachers’ projects; while facilitating teachers in getting mortgage loans reimbursable up to 15 years; More implication of teacher’s representatives at especially at the District level in the management of branch offices specifically in monitoring service delivery, recovery of bad loans etc,. Today, Umwalimu SACCO has teacher’s representatives at the sector, cell level and at the school center.
issue 01/2015 5
Branch Internal Audit Officer Cashiers
Chief Cashier
Credit Administration Officer
Loan Officer
Receptionist
Operations Officers
diverses” Section
“Operations
Head of
Agri. Business Analyst
Head of Credit Section
Director of BDS Dpt
Branch Board of Directors
Director of Credit Dpt
Clearing Officer
Loan Officer
Branch Manager
Head Clearing section
Branches Coordinator
Reconciliation & Validation Controller
Director of operations Dpt
Internal Auditor
Deputy Director of
Director of Internal Audit Dpt
Branch Supervisory committee
SUPERVISORY COMMITTEE
rfficerOfficer'H
Hardware, maintenance & help desk Officer
Network administrator
Research & projects Analyst
Commerci al and Recovery Officer
Deputy of BDS: Recovery Coordinator
Director of IT Infrastructures Dpt
Executive & Public Relation Officer
Financial Controller
Accountants
Database Administrator
Specialist
Database
Chief Accountant
Treasurer y
Director of Finance Dpt
Secretary of MD
Planning, M&E Specialist
Director of MIS Dpt
MANAGING DIRECTOR
BOARD OF DIRECTORS
GENERAL DELEGATES ASSEMBLY
Security Checkers
Personnel Officer
Driver
In charge of stores
Contracts Manager
Legal Affairs
Director of Legal & Compliance Dpt
Data & Financial Analyst
Security Manager
Deputy of HRM
Head Logistics Section
Director of HRM & Administration Dpt
Organisational Structure
Statements
MISSION
VISION
To improve member’s welfare through provision of appropriate, innovative, affordable and accessible financial services
GOALS Umwalimu SACCO’s overarching objective is to “foster the social-economic welfare of Rwandan teachers; To achieve this, Umwalimu SACCO is focused on the following:
“To be a model SACCO in the country, offering high quality and affordable, financial services to its members”
CORE VALUES • Objectivity • Integrity • Team work
• Increasing the capital base to meet member needs and demands for the SACCO’s products;
• Accountability
• Becoming a national and regional model cooperative and leader in its chosen line of business;
• Efficiency and Effectiveness
• Improving management processes and therefore cost efficiency and achieving high returns on investment without subsidies; • Achieving high repayment and recovery ratios on loans;
SLOGAN
• Expanding market access in the countryside and rural areas by promoting agriculture sectors to improve food security among teachers’ household;
Your Welfare Is Our Desire
• Improving operational efficiency; and applying good corporate governance practices and community citizenship
ETHICAL AND PROFESSIONAL VALUES • Efficiency
• Effectiveness • Transparency • Responsiveness • Zero tolerance to any form of mismanagement and corruption • Equity in service delivery
Profile Magazine
issue 01/2015 7
Governance
BOARD OF DIRECTORS
Jean Marie Vianney NZAGAHIMANA BOARD CHAIRMAN
Josette UMURAZA Vice - Chairperson
Theresa UWAMAHORO Secretary
SUPERVISORY COMMITTEE
Phillipe GASASIRA MAJORO Member
Daniel MUSHONDA SEMUTUNZI Chairman
8
Profile Magazine
Prosper NGENZIRABONA Member
Adine MUSABYEYEZU Vice- Chairperson
Brigitte MUKANDUTIYE Member
Issue 01 / 2015
Senior Management Team
Joseph MUSERUKA Managing Director
Aimable DUSABIRANE Director, Operations Department
Emmanuel KARURANGA Director, Finance Department
Jean Désirè USABYIMANA Director, Credit Department
Joseph MUGIRE Director, Human Resources & Administration Department
Patrick KAMBALI Director, IT Infrastructure Department
Jean Claude RUGEMA Director, Legal and Compliance Department
Profile Magazine
Alain RUTEMBESA Director, Management Information Sytems Department
Robert S. ASIIMWE Director, Business Develpment Services Department
Willy N. NDAYISABA Director, Internal Audit Department
Francois M. KAVATIRI Planning, Monitoring & Evaluation Specialist
issue 01/2015 9
Products
Financial Products
SAVINGS PRODUCTS
CREDIT PRODUCTS
Umwalimu Sacco offers an increasing number of attractive savings products, including:
Umwalimu SACCO offers an increasing number of attractive credit products to its clients, including:
-
Permanent savings
-
Voluntary savings
-
Free Savings account
-
Term deposits
Permanent savings
-
Consumer Loan
-
Mortgage loan
-
Project loan
-
Equipment loan
-
Education loan
-
Overdraft and Treasury loan , etc.
This product is the principal source of funding from members. It is deducted from monthly salary at the cost of 5% or subject to a minimum of Rwf 2,000. It is used also as source of guaranty of overdraft loan and will not be withdrawn until the owner leaves the SACCO.
Education loan
Free Savings Account
Equipment loan is the product that is designed for responding to needs related to home equipment, transport facilities and marriage and maternity needs. Home equipment is mainly television, chairs, bed, cupboard and other household items. Transport loans are for vehicle and motorcycle purchases. Marriage loan is purposely for financing dowry, marriage ceremony, maternity expenses and purchase of clothes.
Current account is the account where the owner can withdraw and deposit freely. The account has to maintain a minimum balance of Rwf 5,000.
Term deposits Term deposit is also voluntary savings designed and promoted to encourage members with high liquidity that will not be spent within three months and deposit it with the Umwalimu SACCO. Amount saved will accrue interest at 6% per year. This nature of savings is not made for financing any specific need in the future.
10 Profile Magazine
Education loan is purposely for school fees, school materials, dissertation and graduation costs and laptop for the teachers.
Equipment loans
Overdraft and Treasury Loan Overdraft is the product designed for financing urgent needs and that repayment of the loan will be paid from monthly salary and period payment does not exceed one
Issue 01 / 2015
Products month. The borrower is free to allocate the amount granted to any activity.
Salary Advance
and the financial capacity of borrowers and the size of the loan given, the following seven loan security are used: Net monthly salary of borrower, terminal benefits, compulsory savings, insurance, credit solidarity fund, co-guarantors, equipment and standing orders and collateral.
Salary advance also is like overdraft product but the difference is that a borrower is required to fulfill some conditions and present physical collateral before being granted the loan above Rw 2 million and the loan payment period does not exceed 24 months. The loan repayment period varies between two and 24 months.
Collateral security
Agriculture loan
Co-guarantors
Agriculture loan is the product designed for financing farming activities such as agriculture inputs (seeds, fertilizer, and pesticide and harvest facilities), Agricultural equipment, land purchase and rent, cattle and small animals are all financed under this product. Agriculture loan is promoted in order to contribute to food security and generating additional income to members. This product have specific facilities such as seasonal repayment facility, grace period and allowing official spouse to use the account, insurance facility and flexible facility to enable members to reach easily to the loan. The loan request related to this product, are key priorities in liquidity management.
Project Loan
This option is used to secure a big amount of loan and repayment period is over one year that cannot be covered by salary and compulsory savings. This collateral gives the institution the right to seize or foreclose it when the loan is defaulted or written off. Collateral security could be physical assets such as: mortgage, land and livestock. This is used in the case of small loan amount given the fact that it is not fully repaid as defined in terms of contract. It obliges the borrower to have a guarantor who must be subjected to the same loan term and conditions and the institution should establish a clear procedure to access the co-signers’ resources in case the client defaults. Co-signers’ resources should be savings, salary, etc.
Credit solidarity fund Every loan whose repayment is over one month and less or equal to 24 months and not exceeding Rwf 2 million, is insured by Umwalimu SACOO at 2% rate of total amount disbursed as credit solidarity fund.
Business loans are products for income generation projects excluding transformation. The size of loan amount depends on the appreciation of cash flow and return on investment not on salary. This is because it allows members with innovative projects with added value and high impact to access capital required for operationalizing their ideas and helps them to have additional income. Business loan is includes projects related to retail, transport, agribusiness, building commercial house, trade of services such as restaurant, hotels, school loan etc.
Salary, terminal benefits and compulsory savings:
Mortgage Loan
Umwalimu SACCO also offers non-financial services which include funeral mutual funds, credit solidarity funds, business training and advisory services to help members to develop and manage profitable business projects.
This product is designed to allow members to have their own residential homes. Because it requires the big amount for project implementation the borrower is required to save a portion equivalent to 10% of the amount needed.
LENDING METHODOLOGY, LOAN SECURITY AND PRINCIPAL LOAN CHARACTERISTICS This section describes how different loan products are offered, their characteristics, details of loans size, repayment frequency or repayment period, grace period, loan type , interest rate, commission fees, files and terms and how these loans are secured in order to minimize loss and get back the amount due when the borrower defaults.
Loan security The security of the loan depends on the type of loan given and level of risk related. In the case of Umwalimu SACCO and the context of legal framework of collateral regulation
Profile Magazine
These are used for the loan payable within one month. In general is exclusively used for overdraft loan. In the case of borrower default, Umwalimu SACCO has the right to foreclose the terminal benefits and compulsory savings.
Non-Financial Services
Funeral mutual fund This is a financial facility created in order to support any active member who loses a direct family member. When a family member is dead , Umwalimu SACCO disburses Rwf 300,000 for spouse and Rwf200,000 for a child to the family of the deceased member. This money is used to finance burial ceremony. To be eligible to this fund, a member makes monthly voluntary contribution of Rwf 300.
Business Management Training and financial literacy Umwalimu SACCO provides training in entrepreneurship and business elaboration as well as financial literacy to members with the aim of increasing their capacity on how to create innovative projects with high investment return and how to work with small money to become reach.
issue 01/2015 11
Branch Network
U
mwalimu SACCO has operational branches in all the 30 districts across the country. In addition to the district based branches, Umwalimu SACCO has partnerships with Umurenge SACCOs. This partnership has helped members of Umwalimu SACCO to access services near them.
UGANDA
Nyagatare
DEMOCRACTIC REPUBLIC OF CONGO Burera
Musanze
Rubavu
Gicumbi
Nyabihu
Gakenke
Gatsibo
Rulindo
Kayonza
Gasabo
Muhanga
Kamonyi
Nyarugenge
Ngororero
Rutsiro
Kicukiro
Rwamagana
Karongi Ngoma
Ruhango Bugesera
Kirehe
Nyanza
Nyamasheke Nyamagabe Huye Rusizi
Gisagara
BURUNDI
TANZANIA
Nyaruguru
12 Profile Magazine
Issue 01 / /2015 Issue-001 2015
Evolution
Financing Teachers’ Path To Prosperity
T
he cooperative Umwalimu SACCO was created in 2006 by the initiative of H.E President Paul Kagame and was licensed to operate as a financial institution by the National Bank of Rwanda (BNR) on 22nd February 2008. For the past nine years in operation, Umwalimu SACCO has helped teachers transform their lives socially and economically thus increasing their motivation to provide quality education. The Managing Director of Umwalimu SACCO Mr. Joseph Museruka says that since 2010, the cooperative has focused on product diversification so as to give teachers a bigger pool of financial products to choose from and efficient customer service delivery. The management, adds Mr. Museruka, has also been preoccupied by training teachers at the grassroots level in financial literacy and business planning and management skills in order to increase their knowledge in preparing and managing successful income generating projects. The Staff of the cooperative have also been trained in to get skills needed in the management of the SACCO. Currently, Umwalimu SACCO has a teacher at cell level trained in business planning and management skills. These teachers will be used to train one teacher at school level who will also help to train their colleagues at the school center level across the country. The management also turned Umwalimu SACCO into a profitable financial institution since 2010 while accounts opened by members, value of loans and assets also increased tremendously as shown in the key performance statistics. Emerging from a loss of Rwf 453,654,029 in 2009, Umwalimu SACCO realized a profit of Rwf 64,987,021 , Rwf700 million, Rwf865million, Rwf1.2 billion in 2010, 2011, 2012 and 2013
Emerging from a loss of Rwf 453,654,029 in 2009, Umwalimu SACCO realized its first profit of Rwf 64,987,021 in 2010 and in 2014; it realized a pre-tax profit of Rwf1, 406,534,814, indicating that the teachers’ savings and credit cooperative was in the right path to become self-reliant.
Profile Magazine
Mr. Joseph MUSERUKA Umwalimu SACCO Managing Director respectively while in 2014;, its profit surged to Rwf1, 406,534,814, indicating that the teachers’ savings and credit cooperative is on the right path to become self-reliant. The number of operating accounts held by members increased from 42,017 in 2009 to 75,746 in 2014, indicating the demand teachers have in utilizing financial services for to improve their welfare. The number of members’ permanent savings in the SACCO also increased tremendously from Rwf1,770,741,675 in 2009 to an impressive Rwf9,257,547,242 at the end of 2014. This has given Umwalimu SACCO a firm financial base to lend more to the teachers who submit loan requests to finance income generating projects. With more members and permanent savings, Umwalimu SACCO provided a record amount of loans to its members. The SACCO’s loan book expanded from Rwf2, 143,241,843 in 2009 to a whopping Rwf83, 757,205,962 by the end of December 2014. The increase in the SACCO’s permanent savings from members, the rise in the amount of loans given out to the members and government grants boosted the SACCO’s assets from Rwf4, 039,166,511 in December 2009 to Rwf35, 424,524,021 in December 2014, thus making it one of the most valuable savings and credit cooperatives in Rwanda.
issue 01/2015 13
Evolution Umwalimu SACCO has also been increasing its staff members from 79 in 2009 to 237 in 2014, thus enabling it to provide quick and excellent services to its members in all the thirty districts of Rwanda. The number of branches operated by Umwalimu SACCO also increased from 16 branches in 2010 to 30 meaning each in every district and it is now working with Umerenge Savings and Credit Cooperatives based at the grassroots levels in order to serve teachers easily. The partnership between Umwalimu SACCO and Umurenge SACCO was facilitated by the use of Umwalimu SACCO’s Management Information Systems (MIS) which enables capturing of banking transactions carried out at Umurenge SACCO. This partnership has been a huge boost to the service delivery. Umwalimu SACCO is also using mobile banking in order to facilitate teachers to check their account balances using their mobile phones. The SACCO is also in planning to introduce electronic cards used in Automated Teller Machines (ATM) such as VISA cards and others to facilitate its members to engage in electronic payments. Mr. Museruka attributes the impressive achievements of Umwalimu SACCO to a strong management, increasing participation of members in the management of the SACCO and government support.
Role model to other countries Some of African countries consider Rwanda’s Umwalimu SACCO achievements and innovation plan as a good example to improve teachers’ welfare. For example, Umwalimu SACCO in Rwanda has helped Togolese teachers to create a similar SACCO. If one analyses Umwalimu SACCO impact assessment conducted in 2014 and the strategic thinking for improving teachers’ welfare, one can conclude that the cooperative is another home grown solution made in Rwanda under the initiative of H.E President Paul Kagame.
Transforming Teachers’ Welfare Through Affordable Loans Since 2010, the loan ceiling of Umwalimu SACCO has progressively increased from Rwf 3,000,000 payable in 2 years to Rwf 15,000,000 payable in 15 years. However, starting 2013, the maximum loan offered depends on the borrower repayment capacity. This has seen the number of borrowers increasing and the amount of money released by the SACCO as loans increasing. Total amount of loans released by Umwalimu SACCO increased from Rwf2, 143,241,843 in 2009 to a whopping Rwf83, 757,205,962 by the end of December 2014. Loans were given to projects in Agriculture, Livestock, Construction, Education and Small business category.
14 Profile Magazine
Umwalimu SACCO members being served at the Head Offic According to statistics from Umwalimu SACCO, in 2009, the number of financed projects in Agriculture category stood at 328 valued at Rwf 118,177,220 but in 2014, the number of financed agricultural projects had reached 2,544 with a value of Rwf 1,691,829,459. In the livestock category, in 2009, Umwalimu SACCO financed 620 projects valued at Rwf 245,951,314 while in 2014, the number of financed livestock projects had increased to 3,223 with the value increasing to Rwf 1,693,728,759. In construction of residential houses or renovation of the existing ones with financing from Umwalimu SACCO, the number of financed projects stood at 2,396 with the total value of Rwf 874,549,724. In 2014, the number of financed construction projects had reached 29,347 with the total value of Rwf 30,450,598,754. This means that today, nearly 30,000 teachers have got mortgage loan. In financing education, Umwalimu SACCO released Rwf 163,453,141 in 2009 to finance 513 requests while in 2014; this number had reached 55,141 with the value of Rwf 8,629,630,524 as school fees loans.
Issue 01 / 2015
Evolution
he Head Office branch. In other businesses mainly small income generating projects, Umwalimu SACCO financed 1,170 projects in 2009 at the tune of Rwf 701,110,444. In 2014; the number of small projects had increased to 548,211 valued at Rwf 40,994,114,284.
Going forward The Government of Rwanda is committed to improving the welfare of teachers. To achieve this, the government has committed to give Umwalimu SACCO a grant of Rwf30billion in a period of 10 years from 2012 to 2022 in order to have sufficient financial resources to lend to teachers. However, the government has aligned this financing to targets which Umwalimu SACCO management should achieve by the end of the grant period. Mr. Museruka says that Government has tasked Umwalimu SACCO to ensure that by 2022, 51,000 public teachers each has an income generating activity worth Rwf1million. Mr. Museruka and his team, however, want to achieve this target by 2019. In his strategy, Mr. Museruka says that Umwalimu SACCO is now focused on mobilizing teachers to form cooperatives at the school centers and come up with income generating projects which Umwalimu SACCO will finance.
Profile Magazine
Another strategy, he says, will be to increase the membership of Umwalimu SACCO. This will be done by mobilizing 14,000 teachers in other financial institutions to join to Umwalimu SACCO and take advantage of the incentives given by their cooperative such as an interest rate of 11% per year. This will however require buying commitments such as loans some teachers have taken in other financial institutions so that they can join Umwalimu SACCO. Mr. Museruka continues to explain that the management will also continue to reduce the money going into operational expenses of Umwalimu SACCO members so that it can lend more to the members with income generating projects. This will be coupled with continuous training on project preparation and management to the members. Umwalimu SACCO plans to acquire a modern building and turn it into its Headquarters so that its staff can have enough office space where to operate from. The coopertative is also planning on how to help teachers to get cows in line with Gir’inka Munyarwanda programme initiated by President Paul Kagame. This will further help improve the welfare of teachers and their familiies.
issue 01/2015 15
Pictorial
Some of Teachers’ Economic Activit Livestock
Agriculture Fishing
Cosmetics
Stationary 16 Profile Magazine
Issue 01 / 2015
ctivities financed by Umwalimu SACCO
Construction
Transport
Profile Magazine
issue 01/2015 17
Impact Assesment Survey
Umwalimu SACCO impact assessment survey
A
s requested by the government of Rwanda, the UMWALIMU SACCO Board of Directors ordered for an impact assessment survey regarding the Cooperative’s financial services vis-à-vis its members over the last six years (2008 – 2013). The results from the findings will be used for future planning purposes that are geared towards improving the quality of services given to teachers in the pursuit to uplift their social economic welfare. The concluded survey will also provide a baseline to monitor and evaluate socio-economic indicators used to capture the impact level of services to members and the community; it will thus help in showing the graduation of UMWALIMU SACCO services since its establishment.
Methodology The impact assessment was carried out in all the 30 branch offices of UMWALIMU SACCO (in all Districts of the country). It exclusively involved teachers from public schools in consideration of a total population of 61,000 public school teachers. The impact of UMWALIMU SACCO financial services on its members was to measure the change at the individual level, enterprise level, household level and community level. Data collection was conducted in April 2014, with a sample of 1080 respondents of which 1068 (98.8%) of them responded without reservation. For comparison purposes, 23 Focus Group Discussions with 197 participants were held and 55 key informants were interviewed. To achieve the purpose of the study, the following main hypothesis were tested: the participation in UMWALIMU SACCO services lead to: increased personal savings, increased enterprises assets and income, empowered members with skills in business management, increased household assets and income, improved household expenditures and amenities, and increased job creation.
Key findings Results from the survey permit to reach the followings findings that show the role of UMWALIMU SACCO in improving teachers’ welfare.
18 Profile Magazine
Social performance of Umwalimu SACCO The majority of the respondents asserted that UMWALIMU SACCO has enabled them for coping with emergency (60%). This helps them afford the purchase of food as their highest expenditure (30.8%) followed by school fees (23.9%) and other (5.3%). Operating enterprises increased income (52.1%) and 83% of the respondents acknowledged an improvement in their living conditions such as habitat status, sanitation, food security and nutrition and access to electricity. There was an increase of financial literacy because 25.1% of the respondents voluntarily save an average amount of Rwf 5,000 and 100% make compulsory savings of 5% of monthly net salary. At enterprise level, 27% of the respondents confirmed owning small business enterprises but it is still at low level as compared to UMWALIMU SACCO membership in general. The small enterprises generate additional income that would foster an improved member’s social economic welfare. Agriculture and livestock related enterprises are the mainly owned ventures by the respondents (63.2%) followed by other small business (8.7%) and retail business (5.8%). Moreover, 92.1% of the enterprises owners reported that their enterprises were still running by end 2013 and 80.7% of enterprises confirmed realizing profit during the previous year after acquiring financial support from UMWALIMU SACCO. This has improved the member’s entrepreneurial abilities and control over economic resources since 50.5% of the respondents reported to have gained basic skills in business planning and management where 46.9% are women who confirmed to possess enough skills in business profit related calculations. The survey indicated that the major sources of funds of operating projects are teacher’s personal savings (38.2%) and UMWALIMU SACCO’s loans (45.5%). This is good. At the community level, UMWALIMU SACCO has lead to employment creation for the members themselves and/or their households especially in agriculture (54.6%). According to focus group, education and marriage loans are also among the desired products as expressed by 82.6% of the respondents.
Issue 01 / 2015
Impact Assessment Survey Parameters
Indicators
Performance level
Individual level
Education
-Improved education level:14.6% • Teachers themselves:5.5%, Children: 9.1%
Skills
-Increased entrepreneurial ability • Skills in business planning and management (50.5%) • Gained basic skills in business profit related calculations: 44.6% (Women: 46.9%)
Savings
-Increased financial literacy & Increased level of personal savings: • Compulsory savings:100% members (5% net salary /month) • Free savings: 32.9% members (average Rwf 5000 per month) • Major sources of project funding: Personal savings (38.2%) SACCO loans (45.5%)
Enterprise level
Assets
Members owning enterprises: 27.9%. Agriculture + livestock related enterprises: 63.2% Enterprises still running (2013): 92.1% Enterprises realized profit: 80.7%
Household level
Skills Income Assets
• • • • • • • • • • • • •
House property: from 67.6% to 74% Television: from 33.1% to 45% Mobile phone: from 88.3% to 93.3% Computer: from 14.6% to 19.9% Internet: from 23.3% to 29.2% Remarkable change in the level of income: 52.1% food is the first expenditure: 30.8% 2nd: school fees: 22.5%. Acknowledging improvement in living conditions: 83% (habitat status (41%), sanitation (10%), food security and nutrition (10%), electricity (19%)…)
Income Expenditure Amenities
Community level Job creation
• SACCO members reporting created paid jobs through SACCO financing: 47.9% (Agriculture: 54.6%)
Umwalimu SACCO Service satisfaction The findings of the survey show that 80% of respondents in urban areas can access services in less than 30 minutes against 52.9% in rural areas who indicated that they can access the Cooperative’s financial services in more than one hour. About 75.5% of respondents are satisfied with proximity of services as compared to their former banks because of the partnership with IMIRENGE SACCOs and the low interest rates on loans (69.8%) and the ease of obtaining loan (50.1%). There is high
Profile Magazine
satisfaction level of customer services delivery (80.7%); this increases members’ trust and loyalty measured by the client retention rate status.
Main challenges were identified as follows: •
High turnover of the top management of UMWALIMU SACCO leading to loss of strategic thinking for the institution. The same instability was observed among staff leaving the institution for other financial institutions
issue 01/2015 19
Impact Assesment Survey offering higher salaries and incentives; • Lack of financial capacity of UMWALIMU SACCO due to low interest rate of (11%) that drive more the high increase of portfolio in long term than long term saving and reducing profitability for UMWALIMU SACCO financial self-sufficient and sustainability; • Delay in disbursement of the government subsidies to UMWALIMU SACCO accounts, uncontrollable teachers retrenchment have increased poor performance of portfolio quality and inefficient IT infrastructure to facilitate connectivity that speed up services delivery at Teacher Innocent Nshimiyimana in his Irish Potato plantation financed branch level; by Umwalimu SACCO. • Lack of entrepreneurial skills among teachers and low level of saving culture affect UMWALIMU SACCO financial capacity to meet the teachers’ needs in terms of money request; • Teachers’ households’ size and big number of teachers married at young age that increase rate of concentration of portfolio on overdrafts and treasury for purchasing food and financing education of children. It was observed that 43.5% of the married members are within 25- 35 age group categories with average household size of 5 children aged below 13 years; • Negative mindset among teachers in term of running income generation project admitting that it is due to lack of time to manage them given the nature of their daily work that do not permit them to get time to start up, monitor and manage small business projects (51.5%, n=179) not also forgetting low levels of technical knowhow to run such businesses. • Remoteness and poor feeder roads where 31% of the respondents move on foot for more than 30 minutes to reach the markets and access selling points of agricultural inputs. • Inappropriate of UMWALIMU SACCO branch offices for improving working environment and increasing branding image
Key actions Basing on the challenges identified, to improve teachers’ welfare and ensure UMWALIMU SACCOs’ growth, financial self-sufficiency and sustainability, the following priorities will guide UMWALIMU SACCO’s activities in future: • Increase the financial capacity through savings mobilization, increasing the agriculture sector portfolio to improve teachers’ household food security, develop affordable products that meet teacher’s’ needs; • Change teachers’ business mindset through awareness campaigns, increasing entrepreneurship skills among
20 Profile Magazine
teachers and financial literacy; • Develop new products that respond to married household needs such as savings for education to stimulate members to forecast for the future school fees payments and enable them afford household basic needs. • Sensitize teachers on the benefits of family planning. This will lead to reduced members’ dependency on emergency and overdraft loans • Sensitize members on the benefits of income generating loans shifting from emergency and construction as well as other consumer loans by settling for medium term loans and invest in IGAs for quick returns • Mobilizing teachers in Cooperatives to boost capital sufficiency to run business and collateral related challenges especially for young teachers as well as improve service delivery to increase customer satisfaction and retention; • Creating partnership between UMWALIMU SACCO, Schools and Districts. Benefits from this partnership strategy is to identify service network providers in different areas, opportunities such as investment opportunities, skills development, increasing transfers for increasing source of funds of UMWALIMU SACCO, controlling teachers’ movement and encouraging them to open accounts in the institution and help teachers to benefit other relevant government facilities such as the Business Development Fund (BDF). • Mobilizing financial resources from other lending institutions with low interest rate and Government of Rwanda subsidies for increased lending capacity and access to services that respond to members’ needs • Strengthening institution capacity of UMWALIMU SACCO by increasing staff retention, productivity and skills, owning office houses, and speed up connectivity in order to improve services delivery and strengthening partnership with UMURENGE SACCOs for increased outreach and improved services delivery.
Issue 01 / 2015
Key Perfomance Statistics TOTAL ASSETS 40000000000
35000000000 30000000000 25000000000 20000000000
TOTAL ASSETS
15000000000 10000000000 5000000000 0 2009
2010
2011
2012
2013
2014
LOANS 90000000000
80000000000 70000000000 60000000000 50000000000 LOANS
40000000000 30000000000
20000000000 10000000000 0 2009
2010
2011
2012
2013
2014
PERMANENT SAVINGS 10000000000 9000000000 8000000000 7000000000 6000000000 5000000000 4000000000 3000000000 2000000000 1000000000 0
PERMANENT SAVINGS
2009
2010
2011
2012
2013
2014
MEMBERS 80000 70000 60000 50000 40000
MEMBERS
30000
20000 10000 0 2009
2010
2011
2012
2013
2014
PROFIT 1600000000 1400000000
1200000000 1000000000 800000000
PROFIT
600000000 400000000 200000000
0 2009
Profile Magazine
2010
2011
2012
2013
2014
issue 01/2015 21
Teachers’ Testimonies
Cephas Nshimyumuremyi
C
Cephas Nshimyumuremyi (C) displaying his cosmetic products
ephas Nshimyumuremyi, a chemistry teacher at Groupe Scolaire Kabaya in Muhoza Sector, Musanze District, Northern Province in June 2013 founded Uburanga Products Ltd, a company that manufactures skin care products out of medicinal herbs available in his area. Located in Nkotsi Sector, Muzanze District, Uburanga Products Ltd has brought Nshimyumuremyi to the stardom in less than two years of its operations. The source of success of the graduate of pure chemistry who turned into an entrepreneur is however deeply rooted in Umwalimu SACCO. Nshimyumuremyi is a member of Umwalimu SACCO. His monthly salary is paid through his account in the SACCO branch in Musanze. When his business idea was ripe, Nshimyumuremyi approached Umwalimu SACCO to request for a loan. He was given a loan
22 Profile Magazine
of Rwf700, 000. Currently, Nshimyumuremyi counts around Rwf 24 million worth of loans he has taken from Umwalimu SACCO.
He took Rwf130, 000 in Kampala, Uganda to buy bottles in which he would package his jelly products. Upon his return, he made 20 bottles of jelly and put them on the market. They were immediately bought. He realized that the business had potential and there was a huge demand for his herbal jelly and herbal soap which are good at killing bacteria that is potentially dangerous to the skin. In October 2013 Nshimyumuremyi went back to Umwalimu SACCO armed with a business plan of Rwf57 million.
He wanted more money to grow the business. He was given another loan of Rwf 10 million to buy land which would serve as collateral of the loan. He bought the land of Rwf6million and continued to expand the business and made its products known to the public. The business was then employing nine persons and generating a monthly profit of Rwf200, 000. Nshimyumuremyi then started attending several competitions and trade fairs where Uburanga Products gained popularity and demand for the company’s jelly and soap products increased. Currently, Nshimyumuremyi counts around Rwf 24 million worth of loans he has taken from Umwalimu SACCO. Out of this amount, he bought two microscopes for his factory laboratory. He also used part of the loans to
Issue 01 / 2015
Teachers’ Testimonies renovate the building which houses his factory and the administration.
Impact Nshimyumuremyi is a model teacher for Rwandan teachers. He used science he was teaching to give a practical example to his students on how they could benefit from science to become self sustaining. His story has not only inspired other teachers and young Rwandan entrepreneurs but it has also showed the huge importance of Umwalimu SACCO in supporting teachers’ welfare and dreams. He says that his dream is at least to get two distributors in all the 30 districts in Rwanda and his products should be the solution to skin related diseases in Africa. He currently employs about 14 people. He targets a monthly profit of Rwf700, 000 which a huge increase from Rwf200, 000. He also plans to educate farmers so that they can grow the natural medicinal herbs he used in his products so that they supply them to the factory in the near future. This will also help the farmers generate revenue.
Rosa Kamatari
R
osa Kamatari is a teacher and librarian at Groupe Scolaire de Gacuba in Rubavu DIstrict, Western Province. She has been in the teaching profession for solid 16 years. She joined Umwalimu SACCO in 2009. Since then, she lives a happy life with her family. At first, she requested a loan of Rwf8.5million and she got it. She used the loan to buy a cargo boat which cost her Rwf12million. The boat soon started making encouraging returns transporting Bralirwa products from Rubavu to the areas of Kibuye through Lake Kivu. Each month, the boat would bring in revenue of Rwf2million. With this sounding revenue, Kamatari paid back the loan and took full control of the boat. The boat later landed on another deal where it was hired to transport cement to the cement factory in Rusizi District, Western Province. Each month, the bought would now bring Rwf1million. Kamatari says that the profit she expected from the boat increased three to four times and she is happy.
Impact Kamatari lives a happy life after taking her first loan from Umwalimu SACCO and bought a cargo boat. She managed to build a residential house for her family worth Rwf30million out of the money from the cargo transport business. She upgraded her education level and she is now a university graduate. Through her boating business, she employs four permanent staff and 25 casual laborers. She says that she will continue working with Umwalimu SACCO as she ventures into other income generating ventures. Profile Magazine
issue 01/2015 23
Teachers’ Testimonies
Donatha Mukakamanzi
D
onatha Mukakamanzi is a teacher at Groupe Scolaire Butamwa in Mageragere Sector, Nyarugenge District, Kigali City. Mukakamanzi, 33, started teaching in 2002. She became a member of Umwalimu SACCO in 2008. In the same year, she applied for a small loan of Rwf 300,000. Out of this amount, she bought 100 hens to start poultry farming in order to increase her income. Luckily, her idea was quick to gain success because all the 100 hens she had bought would produce 90 eggs every day which she sold. Mukakamanzi later bought 500 hens and their egg output increased until she increased the number of hens to 1,000 and she is now at 2,000 with the target to hit 10000 hens. Mukakamanzi has reached a loan capacity of Rwf 4,000,000 because
24 Profile Magazine
her business has been growing successfully.
Impact The Rwf300, 000 loan Mukakamanzi took has brought transformation in her life. She started poultry farming at her small residence but due to the rapid growth of the business, she now owns a large poultry farm worth Rwf7, 000,000 which she bought out of the profit from her business. Her income has greatly increased compared to the time when she was only depending on the salary from her teaching job. She now makes monthly savings. Her business has also created employment for others. She currently employs four persons and each earns a monthly wage of Rwf 20,000. She continues teaching.
Issue 01 / 2015
Teachers’ Testimonies
Joseph Dusengimana
J
oseph Dusengimana is a teacher at Groupe Scolaire St Therese in Ruheru Sector in Nyaruguru District, Southern Province. He loves teaching and has been in the profession since 1997.
it could get finished immediately. Life however began to change when the family received the first loan and successfully invested in the lucrative transport business.
Dusengimana joined Umwalimu SACCO in 2007. Although he did not continue working with the SACCO because he shortly left to continue studies at Kigali Independent University (ULK), his wife, also a teacher, continued working with the SACCO.
He says that because of the money from Umwalimu SACCO, he has now been able to construct a family house in the center and shifted from the village. He managed to obtain a bachelor’s degree and his wife has also gone back to school to obtain an undergraduate degree. Their children also go to school.
In 2010, Desengimana and his wife thought of starting an income generating activity and transport of persons was their first idea. Immediately his wife took a loan of Rwf 2,300,000 from Umwalimu SACCO and they added some money to buy a taxi minibus to venture into transport business.
Because of the profits from the transport business, the family of Dusengimana has also ventured into commercial cattle farming and they now have three high breed cows in which they get milk for consumption at home and sell the rest and also fertilizer for their other agricultural activities.
The venture was successful with encouraging returns. In 2014, Dusengimana had completed a bachelor’s degree in Management at ULK and successfully returned into the teaching profession. Building on the first successful loan, he applied for another loan, this time of Rwf4, 000,000 and he got it. He bought another vehicle and continued to expand his transport business. Today, Dusengimana has taken loans from Umwalimu SACCO worth about Rwf8, 000,000.
Impact Working with Umwalimu SACCO has greatly impacted the family of Joseph Dusengimana. As a teacher, Dusengimana was earning a monthly salary of 30,000. This was little and
Profile Magazine
issue 01/2015 25
Teachers’Testimonies
Rodrigue Kawombe
R
odrigue Kawumbe, is a teacher at Groupe Scolaire Officiele de Butare, Huye District, Southern Province.
Kawumbe entered into the teaching profession in 2008 after completing high school. At the time, he was earning a monthly salary of Rwf 27,000 from his teaching job. With the burning desire to increase his income, Kawumbe was always contemplating the means he would use to create an income generating activity and at the same time continue teaching. After two years into the teaching profession, Kawumbe decided to try Umwalimu SACCO for his luck. Luckily, he found doors wide open for him. Armed with a business idea to venture into a stone quarry and start selling building stones, Kawumbe applied for a loan of Rwf300, 000 and his wish was met. He got the money and started implementing the project. First, he paid a license fee of Rwf100, 000 to get rights on the quarry he had chosen and invested the remaining Rwf200, 000 in purchase of equipment and payment of wages to his staff. The stone quarry business was soon a success. Each lorry of stones would bring him a profit of Rwf 15,000. He soon started getting big clients such as construction companies which he would supply construction stones. The business continued to expand and he included sand quarries on the list of products he offered. He settled the loan a year later and requested another loan of Rwf1.5 million. In 2012, he settled the second loan and requested for a bigger loan of Rwf5million. This time, his salary had also increased to Rwf105, 000. He paid back the
26 Profile Magazine
Rwf5million loan and requested another one of Rwf15million. Impact Kawumbe has achieved so many things shortly after taking the first loan from Umwalimu SACCO. He is now married and together with his wife, they have a child. Kawumbe is now a university graduate and his wife is also studying at university. He has a residential house and another one which he rents in Butare. After taking the loan of Rwf 15million, he bought a commercial house in Kicukiro District in Kigali and it earns him a monthly income. In addition to the improved social welfare, Kawumbe supplies construction stones and sand to construction companies in Butare. He remains a teacher.
Issue 01 / 2015
Teachers’ Testimonies
Innocent Nshimiyimana
I
nnocent Nshimiyimana is the head teacher at GS Kabuga in Kibove Sector, Musanze District, Northern Province.
Nshimiyimana joined the teaching profession in 1999. Since 2009, he is the head teacher at Ecole Kabuga in Kibove Sector, Musanze District in Northern Province. In addition to teaching, he is also the President of Umwalimu SACCO Musanze branch. Nshimiyimana is among the pioneer teachers who joined Umwalimu SACCO when it was created in 2006. It was however until 2009 when he started getting his salary through the SACCO. A graduate of political science, Nshimiyimana received his first loan of Rwf 5,000,000 from Umwalimu SACCO to start commercial farming of Irish potatoes. In addition to the loan
Profile Magazine
for commercial farming, Nshimiyimana took another loan to buy a residential house in the suburbs of Musanze town.
Impact Before taking a loan from Umwalimu SACCO, Nshimiyimana was only depending on the monthly salary from his teaching occupation. But working with of Umwalimu SACCO has brought countless joy in the family of Nshimiyimana. He says his income has greatly increased because of the additional revenue he gets from the farming of Irish potatoes. He now has a residential house. Through his farming project, he has created jobs for eight persons and he is contributing to the economic growth of the country.
issue 01/2015 27
Teachers’ Testimonies
Uwingabire Marie Chantal
cows produced, she started selling fresh milk in her neighborhood. At the beginning, she was selling five liters but she is now selling 20 liters a day. With the loan from Umwalimu SACCO and the profit from milk, she expanded her shop and included other drinks such as beer and soft drinks like sodas. She also sells snacks.
Impact
U
wingabire Marie Chantal, is a teacher at Groupe Scolaire Butamwa in Mageragere Sector, Nyarugenge District, Kigali City.
Uwingabire Marie Chantal, 34, a mother of two, started teaching in 2007. In 2012, she took a loan from Umwalimu SACCO to buy two cows. Before that, she had taken a salary advance and bought a cow but it turned out to be barren. She sold it and bought a fertile one. When her
28 Profile Magazine
Uwingabire has a transformative story. When she was only depending on the income from her teaching job, she could spend all her salary in one day and it was not even enough to cater for her family’s needs. This made her hate teaching. However, with the loans from Umwalimu SACCO, she is appreciative of her life and more importantly the teaching profession. She says that with her business, she makes a profit of Rwf 4,000 a day and she can be able to save at least Rwf 300,000 a month. She has ceased to take salary advances because she gets enough money from her business. She says she is able to meet the needs of her children while continues teaching. She has also created employment for four persons, who help her to keep the business running when she is at school teaching.
Issue 01 / 2015
Stakeholders Speak Out
Olivier Rwamukwaya, Minister of State in charge of Primary and Secondary Education Umwalimu SACCO exists in order to assist teachers develop socially and economically. The Government therefore has the plans to continue giving ample support to Umwalimu SACCO so that it can also continue channeling support to the teachers. With its support to the teachers, Umwalimu SACCO indirectly impacts positively the quality of education because it helps teachers to solve their social and economic problems which increases their motivation to work. As the Ministry of Education, we consider the support given to teachers through Umwalimu SACCO where they have access to loans to get shelter, start income generating activities and continue education as incentives to motivate them so that they can deliver the desired quality of education.
John Rwangombwa, Governor, National Bank of Rwanda The government started Umwalimu SACCO with the aim to help teachers to have access on financial services so that they can improve their social and economic welfare. Research shows that when people have access on financial services, their welfare improves. Statistics received by the National Bank of Rwanda indicate that Umwalimu SACCO is already making an impact in the welfare of teachers. This impact is measured in the number of teachers who receive credit and the projects in which they invest the money loaned to them. In fact some teachers who have benefited from Umwalimu SACCO credit products have come out publicly to commend the importance of their cooperative. Some have built residential houses; others started income generating activities while others have invested in attaining higher levels of education as way of upgrading their knowledge. As the regulator of the financial sector, the National Bank of Rwanda is also happy that Umwalimu SACCO is making progress. It is well managed and this is evident in the growth of its assets and profitability trend. Umwalimu SACCO is heading in the right direction.
Uwimana Nehemie, Former Mayor of Rwamagana District Umwalimu SACCO exists in order to assist teachers develop socially and Out of 1671 teachers in Rwamagana District, 1656 or 99% are members of Umwalimu SACCO but our wish is to see all of them join Umwalimu SACCO. Umwalimu SACCO plays an important role in improving the living standards of teachers through quick and affordable loans. These loans not only help teachers to solve their short term financial needs but they also help them to start long term income generating projects. We have a cooperative of teachers who borrowed money from Umwalimu SACCO and invested it in trucks that transport construction materials. This does not only help the families of the teachers involved in the cooperative but it also helps to create jobs for others which is a commendable move. There are so many other ways that teachers benefit from Umwalimu SACCO and their once their welfare improves, it also impacts the communities around them and the national economy in general. Profile Magazine
issue 01/2015 29
Stakeholders speak out
Winnifrida Mpembyemungu, Mayor of Musanze District We are very appreciative of the fact that Umwalimu SACCO has been transforming the lives of teachers in Musanze District. Musanze District has over 3,000 teachers. Although they are aware that their salary is small, when one considers their achievements, socially and economically, they have achieved a lot because they have embarked on working with Umwalimu SACCO. They have for example taken advantage of the loan schemes provided by the cooperative and this has greatly impacted their lives.
Paul Jules Ndamage, Mayor of Kicukiro District Umwalimu SACCO is an important cooperative especially to our teachers and this has positive impact on the quality of students we’ve in Kicukiro District. Umwalimu SACCO is a long-term solution to the economic challenges of our teachers and it is an invaluable contributor the development of the national economy. Just like any other citizen, when a teacher has better living standards, the economy also benefits. In Kicukiro District in particular, Umwalimu SACCO has greatly supported our teachers to improve their living standards. Our teachers are now smart, presentable, self-reliant and confident.
Habitegeko François, Mayor of Nyaruguru District Before Umwalimu SACCO was established, teachers used to complain about poor living standards thus demanding for salary increase. Since Ummwalimu SACCO was established, it has helped teachers improve their living standards. Umwalimu SACCO facilitates teachers to get loans at lower interest rates compared to other financial institutions and this has enabled them to come up with income generating projects which have transformed their lives. For instance, in our District [Nyaruguru], we see income generating projects that have helped improve teachers’ welfare socially and economically. We have some teachers who have even built their own residential houses, others have invested in passenger transport vehicles, others opened up shops and they also created jobs for others and in fact pay them a salary higher than that of a teacher.
30 Profile Magazine
Issue 01 / 2015
18,478,423,706
Cases: 187,242 43,581
16,607
4,412,626,920 9,127,401,985
5,632,226,657 1,646,963,094
958,770,083
163,453,141
21,437,266,428 30,450,598,754 38,821,568,370 Increase ratio: 3,382% Increase 57,161 55,141 cases 53,140 cases ratio: 10,689% 7,378,506,888 8,629,630,524 9,913,713,141 Increase ratio: 5,180% Increase ra754,097 302,002 Cases 548,211 cases tio: 46,756% 26,234,342,958 40,994,114,284 53,537,235,054 Inrcease ratio: 5,747% 12,237,603,920
3,700,792,281 6,574,478,250
874,549,724
Cases: 49,889
33,907 29,347 cases 24,819 cases
Cases: 18,994
10,872
7,718
2,396
5,977
2,407,350,613 1,693,728,759 1,542,983,941
1,144,657,841
942,424,417
783,214,006
245,951,314
3,974
Increase ratio: 420% Increase ratio: 589% Increase ratio: 1,125% 3,807 3,223 cases
2841 cases
cases: 2481
2,085
1,787
620
513
Increase ratio: 1,332% 1,828,630,259 1,691,829,459
1,323,408,699
650,449,163
486,865,107
375,750,064
118,177,220
1,170 Other loans (small business) Amount (Rwf) 701,110,444
Number of loans/School fees Amount (Rwf)
Number of loans/ construction Amount (Rwf)
Number of loans/livestock Amount (Rwf)
Increase ratio: 676% 3,341
2,544 cases
Cases: 2169
Cases: 1520
1,045
7,053,153,402
4,887,143,468
1,272,797,946 2 ,355,357,925 1,297,912,439
326,178,809
925
9,257,547,242
7,287,478,911
5,413,396,478
4,081,577,363
1,770,741,675
Permanent savings Free savings
Comparison 2009 & 2014 Increase 79,388 ratio: 80% 10,772,639,037 Increase ratio: 423% 7,541,828,232 Increase ratio: 2,062% 30/09/2015
328
75,746
70,777
62,117
59,598
50,924
42,017
Member
Number and amount of loans Number of loans/ Agriculture Amount (Rwf)
31/12/2014
Dec. 2013
Dec. 2012
Dec. 2011
Dec. 2010
Dec. 2009
Description
SUMMARY OF FINANCIAL POSITION SINCE 2009 (CUMULATIVE)
Dec. 2009
79
Permanent Staff
3,767,174,640
12,123,712,075
2,315,971,170 3,267,173,640
GVT Grant + special grant (Rwf)
Non Performing loans Total Assets 4,039,166,511 7,310,678,187
16
16
Branch
20
31 (L.D) + 3 police men
31 (Local Defense)
31 (Local Defense)
Security staff
65
36
Temporary staff
109
700,033,594
(453,654,029) 64,987,021 92
9,355,839,182
2,089,356,524 6,110,090,473
Loan Portfolio/ Total outstanding loan Profit (Rwf)
18,778,132,853
63,560
Dec. 2011
2,143,241,843 10,231,153,354
31,011
Dec. 2010
Total amount of loans disbursed (Rwf)
Total number of 4,727 loans disbursed
Description 384,971 cases
Dec. 2013 632,919 cases
31/12/2014
3.3%
8,495,077,190
30
90 Intersec Security
36
222
1,218,818,300
4 .15%
11,267,173,640
30
90 Intersec Security
35
263
1,411,336,317
17,039,585,769 28,636,586,633 35,588,586,343
6.1%
5,325,077,190
30
49 Local Defense)
52
166
865,261,281
14,106,528,670 23,686,290,729 28,309,389,000
38,143,367,287 57,936,508,914 83,757,205,962
Cases: 260,126
Dec. 2012
Comparison 2009 & 2014 Increase ratio: 13,289%
42,684,635,839
4.15%
15,017,173,640
30
90
38
285
1,245,136,347
34,553,371,952
Increase ratio: 781%
Increase ratio: 386%
Increase ratio: 87.5%
Increase ratio: 190%
Increase ratio: 233%
From loss to profit
Increase ratio: 1,255%
107,588,597,449 Increase ratio: 3,808%
847,383
30/09/2015
SUMMARY OF FINANCIAL POSITION SINCE 2009 (CUMULATIVE)
-
Credit solidarity fund
41,501,960 237,195,150 495,914,513
Dec. 2010 Dec. 2011 Dec. 2012 78,041,200 206,539,230 309,162,130
816,796,067
Dec. 2013 431,669,530
1,028,303,175
31/12/2014 550,388,065
1,238,546,888
30/09/2015 632,721,665
N.B: All loans repaid in 5 years or exceeding 2 million are insured in insurance Companies
(Reserve of Rwf 1,238,546,888)
(reserves of Rwf 632,721,665) From 2010 up to 30/09/2015 beneficiaries were 170 with amount of Rwf 87,669,715
Comments From 2010 to 30 Sept 2015: beneficiaries were 1,515 with amount of Rwf 372,950,000
N.B: Since 2010, all Government grant given is used to give loan to teachers, not for paying salaries or function expenditures like in previous years
Dec. 2009 -
Description Funeral solidarity fund
SUMMARY OF FINANCIAL POSITION SINCE 2009 (CUMULATIVE)
This Tea Dist
Reader’s Notes
We
34 Profile Magazine
Issue 01 / 2015
This cargo truck was bought in the loan from Umwalimu SACCO to the Teachers’ Cooperative at St Joseph Secondary School in Rwamagana District, Eastern Province.
We Finance Teachers’ Income Generating Projects CONTACT US: UMWALIMU SACCO P.O Box 2257, Kigali, Rwanda Tel.: (+250) 252580426 Fax: (+250) 252580426 E-mail: sacco_umwalimu@yahoo.com Website: www.umwalimusacco.co.rw
We Finance Teachers’ Income Generating Projects
CONTACT US: UMWALIMU SACCO P.O Box 2257, Kigali, Rwanda Tel.: (+250) 252580426 Fax: (+250) 252580426 E-mail: sacco_umwalimu@yahoo.com Website: www.umwalimusacco.co.rw