Summer Archives

Juan Felipe Diaz Gutierrez Kigali, Rwanda - Urwego Opportunity Bank (UOB)

During the summer of 2014, I had the fortune to live and work in Kigali, Rwanda with fellow Ingram Scholar Nicholas DeNuzzo. We worked with Urwego Opportunity Bank (UOB), the largest microfinance bank in Rwanda, to address the issue of extreme poverty, which is particularly acute in countries with recent histories of war and genocide. Microfinance is a tool to extend credit and financial services to marginalized people, giving the individuals and groups in these countries the power to improve their own lives.

During our time at UOB, we conducted an impact analysis assessment of the staff loan program by interviewing over 50% of the bank’s staff in branches across all of Rwanda’s regions. We conducted over 100 interviews in English, French and Kinyarwanda. Our findings revealed that the current conditions offered by the loan program where not favorable for the staff and as a result 30% of the bank’s staff had loans at other banks. We presented our findings to UOB’s management team and suggested specific changes to the loan program. Our survey also revealed the need for the creation of a construction loan, which was not previously part of the bank’s portfolio. By establishing a partnership between UOB and construction companies specialized in affordable housing, we streamlined the process of securing financing and building the homes, reducing the formerly elevated risk of construction loans for both the bank and its clients. Our project will contribute 100 affordable homes to Kigali’s housing market within the next year, with the potential of further demand-driven growth in the coming years.