As we begin 2021, it is timely to reflect on the past year and make commitments for the new year. 2020 was a unique year with uncertainties caused by the pandemic that exacerbated the inequalities that exist in the socio-economic systems worldwide. According to UN Women and UNDP data released in September 2020, the pandemic will aggravate poverty on a global scale but women will be disproportionately affected. This is one of the many examples of how global and local efforts including financial inclusion interventions are being disrupted. However, together, we can make a change.
 

As in many other countries around the world, our government has put in place different measures to stem the effects of COVID-19 on the national economy and citizens’ livelihoods in general. Different measures to stop the spread of the virus including curfews and lockdowns have been introduced. Although the measures are effective in slowing down the spread of the virus, they have had a negative impact on the welfare and income streams of different categories of the Rwandan population including day labourers and entrepreneurs in the informal sector.

While the pandemic outbreak has been challenging on many fronts, we cannot deny the fact that measures such as social distancing, lockdowns, and cash-based payment drew the attention to Digital Financial Solutions (DFS) and has drastically influenced the whole ecosystem. The shift towards DFS is a positive aspect but there is a need to make it work for the low-income people and the poor.

New digital financial solutions have been introduced and existing ones were strengthened to ease the doing of business and remote working but the disparities in accessing digital connectivity and flexible employment are still self-evident.  The financially unserved and underserved communities remain behind in accessing and utilizing digital financial services in this period where movements and physical contact are restricted.

At AFR we are now leaning on new models of intervention that embrace Adaptation, Resilience and Recovery. Our COVID-19 response was founded on ad hoc research to understand the impact of the pandemic on different sectors of the economy, mobilise support to policymakers and implementing partners while designing a context-driven reprogramming of our interventions to include COVID-19 response and adaptation, digitalisation across most projects; and supporting Micro, Small and Medium Enterprises (MSMEs) recovery.

In 2021, AFR renews its commitment as a market catalyst and convener for the financial sector in Rwanda by removing the systemic barriers that hinder access to financial services by putting the low-income people particularly the rural poor, women and youth at the centre of our interventions.

From all of us at AFR, we wish you a happy and healthy new year.
 

• AFR partnered with Cenfri and Yego Moto to study the risks faced by taxicab/motorcycle drivers and facilitate the development of an insurance product that speaks to the driver’s needs and offers value. Find out more here.
• AFR in partnership with the Association of Microfinance Institutions in Rwanda (ASSAR)conducted a survey in May to assess the Impact of COVID-19 on the Microfinance Sector in Rwanda. Learn more from the survey findings here.
• We have also partnered with the Rwanda Bankers Association (RBA) and the Association of Microfinance Institutions in Rwanda (AMIR) to study the impact of the pandemic on the banking and microfinance sectors.