Impact Of Financial Inclusion On Economic Growth Of Rwanda

The study was conducted to examine the role of financial inclusion in economic growth in Rwanda.For the research we adopted a quantitative approach to collect and analyse data.The Ordinary Least Square(OLS)Method was used to analyze the data in a multi-linear regression model.The findings revealed that financial inclusion is significant in supporting economic growth;it facilitates equitable distribution of financial facilities,transforms peoples way of living,enhances capital creation and empowers people to go for financial services that are germane to their needs.The study indicated that there is reduced constraints to accessing to financial services through the initiation of policies like Umerenge Savings and Credit Co-operative(U-SACCO)and promotion of Microfinance Institutes.The study reveals that the increase in Money supply,Domestic Credit to the private sector,number for Automated Teller Machines(ATM),number of branches of commercial banks and number of borrowers at commercial banks has significant relationship with economic growth in Rwanda.However,Depositors with Commercial Banks and Lending Interest Rate are not statistically significant and have the no significant impact and on the economic growth of Rwanda in succession.The Rwandan Government is recommended to creation of a supporting infrastructure through the expansion of electronic payments systems for credit and debit cards,ATMs,and POS terminals,deepen policies that encourage Banks and MFI’s to provide more loans to the private sector SME’s and grooming of more qualified graduates and experienced financial services professionals.