Why Rwandans Need to Save More: A Guide to Building Your Financial Future

Rwanda's economy has come a long way since 1994, with impressive growth rates and ambitious development plans. Yet there's one critical area where we're falling behind our neighbors: savings. A recent FinScope Survey (2024) showed that while formal savings increased from 54% in 2020 to 59% in 2024, 23% of Rwandans still rely on informal savings methods, 3% keep their savings at home, and 15% do not save at all.

This isn't just a statistics problem—it's about your ability to handle emergencies, invest in opportunities, send your children to school, and retire with dignity. Let's explore why saving is challenging in Rwanda and, more importantly, what you can do about it.

The Savings Challenge in Rwanda

Rwanda's private investment grew modestly from 12.7% of GDP in 2007 to 15.8% in 2022, while public investment rose more substantially from 5.0% to 13.8% during the same period. When compared to neighbors like Tanzania (24.3%) and Uganda (16.9%), it's clear we have room to grow.

But why is saving difficult for many Rwandans?

Income Volatility: The majority of Rwandans still operate in the informal economy and income volatility remains high. When your income fluctuates from month to month—whether you're a farmer dependent on harvests, a motorcycle taxi operator affected by fuel prices, or a small trader dealing with seasonal demand—consistent saving becomes challenging.

Immediate Needs vs. Future Goals: When money is tight, it's natural to prioritize today's food and rent over tomorrow's uncertainties. Many Rwandans face the difficult choice between meeting immediate family needs and setting money aside for the future.

Limited Trust in Formal Systems: Despite financial inclusion reaching 96%, most activity happens outside formal institutions. Some people prefer traditional savings groups or keeping money at home because they're familiar, accessible, and don't require paperwork.

Lack of Financial Literacy: Understanding how interest works, comparing different savings options, or planning for long-term goals isn't taught in most schools. Without this knowledge, it's hard to make informed financial decisions.

Why Saving Matters for Your Future

Before diving into how to save, let's be clear about why it's worth the effort:

Financial Security: Life is unpredictable. Medical emergencies, job loss, or unexpected expenses can derail your plans. Having savings means you won't need to sell your land, livestock, or take on expensive loans during tough times.

Opportunity Seizure: Whether it's starting a business, upgrading your skills, or investing in land, opportunities often require upfront capital. Savings give you the freedom to act when these moments arise.

Children's Education: Quality education is one of the best investments you can make. Savings ensure you can afford school fees, uniforms, and supplies without crisis every term.

Retirement Dignity: Only about 8% of Rwanda's workforce had access to long-term savings through pension schemes, while the remaining 92%, such as motorcycle taxi operators, farmers, and some masons and traders were excluded. Don't rely solely on your children or the government—build your own retirement cushion.

Government Initiatives to Boost Savings

Rwanda isn't sitting idle on this issue. The government has launched several initiatives:

Ejo Heza Scheme: This long-term savings program was specifically designed for the informal sector. RSSB is revamping the Ejo-Heza Term Savings Scheme, allowing savers limited access to part of their funds during emergencies such as medical or academic needs. This flexibility addresses one of the main complaints—people want to save long-term but also need emergency access.

Increased Pension Contributions: The government recently increased pension contributions from 6% to 12%, with plans to reach 20% by 2030. While this might seem like less money in your pocket today, it's building a foundation for your retirement.

Digital Platforms: A group of young Rwandan tech entrepreneurs has introduced Chango, a digital platform designed to transform savings and investment groups in Rwanda, improving transparency, accountability, and governance. The platform is approved by the National Bank of Rwanda and follows global financial standards for security, with over 210 private groups already registered.

Financial Literacy Programs: The government and various organizations are increasing efforts to educate Rwandans about financial planning and the benefits of formal savings.

Practical Steps to Start Saving Today

Knowing you should save is one thing; actually doing it is another. Here are realistic strategies for different situations:

If You're in the Informal Sector

Start Small: Don't wait until you can save large amounts. Even Rwf 500 per day adds up to Rwf 15,000 per month—enough to handle minor emergencies.

Join or Form a Savings Group: Traditional "ikimina" or modern digital platforms like Chango can provide both discipline and social support. The accountability of the group helps you stay consistent.

Separate Business and Personal Money: If you're a trader or business owner, keep your business capital separate from household money. This prevents accidentally "borrowing" from your business for personal needs.

Time Your Savings: Save immediately after earning. If you're a motorcycle taxi operator, set aside money at the end of each day before going home. Money that reaches your pocket tends to disappear quickly.

If You're Formally Employed

Automatic Deductions: Ask your employer about automatic savings deductions or increase your pension contributions beyond the minimum. What you don't see, you won't miss.

Use Bank Standing Orders: Set up automatic transfers to a separate savings account on payday. Treat savings as a non-negotiable expense like rent.

Take Advantage of Employer Benefits: Some employers offer matching contributions to savings or retirement funds. This is free money—don't leave it on the table.

Save Bonuses and Windfalls: When you receive a 13th-month salary, bonus, or unexpected money, save at least 50% before spending on anything else.

For Everyone

Set Clear Goals: "Saving money" is too vague. Instead, aim for specific targets: "Save Rwf 200,000 for my child's school fees by December" or "Build an emergency fund of Rwf 500,000 within 18 months."

Use Multiple Accounts: Don't keep all your savings in one place or one form. Consider combining bank savings, Ejo Heza for retirement, and traditional savings groups for shorter-term goals.

Track Your Spending: For one month, write down everything you spend. You'll be surprised where money goes. Small daily expenses—snacks, airtime, drinks—can add up to significant monthly amounts.

Cut Unnecessary Expenses: Be honest about wants versus needs. Do you really need that expensive phone upgrade? Could you reduce your airtime costs by using WiFi more? Small cuts make big differences over time.

Increase Your Income: Saving is easier when you earn more. Consider side hustles, upgrading your skills, or improving your business efficiency. More income creates more saving capacity.

Choosing the Right Savings Options

Rwanda offers various savings options, each with benefits and limitations:

Commercial Banks: Best for larger amounts and longer-term savings. They offer security, interest (though often modest), and easy access to loans. However, some have minimum balance requirements and charge fees.

Umurenge SACCOs: Community-based and often more accessible in rural areas. They offer competitive interest rates and loan opportunities to members. The drawback is they may have limited services compared to banks.

Mobile Money: Rwanda's e-payment landscape has grown significantly, with mobile payment services, internet banking and mobile banking accounting for 101%, 67%, and 31% of e-payment usage. Mobile savings are convenient and accessible, though interest rates may be lower than banks.

Ejo Heza: Designed specifically for long-term retirement savings with tax benefits. The funds are locked in until retirement, though emergency withdrawals are now being allowed for specific situations.

Investment Funds: RNIT-Iterambere Fund offers above 11% interest and other investment options. These can offer higher returns than regular savings but come with more risk. Only invest money you can afford to lose.

Savings Groups (Ikimina): Time-tested and trusted by many Rwandans. They provide social support, regular discipline, and access to credit. The main risk is management—ensure your group has clear rules and trustworthy leaders.

Overcoming Common Obstacles

"I don't earn enough to save": Start with whatever you can, even Rwf 100 per week. The habit matters more than the amount initially. As your income grows, increase your savings proportionally.

"I need the money for emergencies": This is exactly why you need to save—to have money for emergencies without disrupting your entire life. Start with a small emergency fund before tackling longer-term goals.

"I don't trust banks": Banks in Rwanda are regulated by the National Bank of Rwanda and deposits up to certain amounts are protected. Start small to build trust. You can also diversify between banks and savings groups.

"My family needs everything I earn": Have honest conversations with your family about building financial security. Even small savings can protect the family during bigger emergencies.

"I'll save when I earn more": This mindset keeps people poor. The habit of saving is more important than the amount. People who save 5% of a small income are more likely to save when they earn more.

Looking Ahead

The Financial Sector Development Strategy 2025-2030 aims to build a resilient, inclusive, and innovation-driven financial sector that will propel Rwanda's economic transformation. But national strategies mean nothing if individual Rwandans don't take personal responsibility for their financial futures.

The government is creating opportunities through Ejo Heza, improved financial infrastructure, and better regulation. Digital platforms are making saving more accessible and transparent. Banks and other financial institutions are developing products specifically for Rwandans' needs.

Your job is to take advantage of these opportunities. Start today, even if it's small. Be consistent, even when it's hard. Stay informed about your options and choose what works for your situation.

The Bottom Line

Saving isn't just about depriving yourself today for some uncertain tomorrow. It's about creating options, reducing stress, and building the life you want for yourself and your family. It's about breaking the cycle of living paycheck to paycheck and gaining control over your financial destiny.

Rwanda has ambitious goals for savings growth, but the real success will be measured in individual stories—the farmer who can afford their child's university fees, the motorcycle taxi operator who opens their own business, the small trader who retires with dignity.

Your financial future starts with a single decision: to save something today. The amount doesn't matter as much as the commitment. Start small, stay consistent, and watch your financial security grow. Your future self will thank you.

Take Action: Don't just read this and move on. Before you go to sleep tonight, decide on one concrete step you'll take this week to improve your savings. Whether it's opening an account, joining a savings group, or simply tracking your expenses for a week, do something. Small actions lead to big changes.