Credit Self-Help Groups activities in Socio-Economic Development of members in Rwanda

Abstract

This study dealt with the effect of Credit Self-Help Groups (CSHGs) activities in socio-economic development of members in Busasamana Sector, in Nyanza District, Rwanda. The main research problem is that Low income of households in Busasamana sector does not allow poor households to save or to finance economic activities and to overcome challenges faced in socio- economic development as it is stated in Integrated Households Living Condition Survey III (2013) that 39.1 of Rwandans are under the poverty line. The specific objectives wanted to assess the operating services system of credit self-help groups in Busasamana sector, finding out the level of socio-economic status among the members of credit self-help groups before and after joining them and examining the effect of credit self-help groups’ activities on socio- economic development of the members. This study was conducted by using descriptive research design involving qualitative and quantitative approaches and correlational research design. A systematic random sampling has been used to sample 94 respondents. The schedule method and the interview method have been used as data collection tools. After the analysis of data, results revealed that 97.9 % of the respondents received a loan from CSHGs to finance their economic activities. The level of socio-economic development before joining CSHGs, the results show that 78.7% had monthly income below 10,000Rwf whereas after joining CSHGs only 1.1% had below10, 000Rwf. Results revealed thus a high significance positive relationship between variables (r = 0.703**, P>0.01) which presupposes that if CSHGs ensures or provides a loan support to its members, the acquisition of new asset will surely be increased by 70.3%. This high positive correlation revealed a need that the members of the CSHGs continue to focus on the activities of CSHGs and mobilize more citizens given a positive effect on socio-economic status.