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 teacher per sector) which convenes twice a year unless otherwise.

Umwalimu SACCO Head Office

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.