While the government of Rwanda is encouraging citizens to form associations to achieve fast social economic development, some traders revealed their reasons for avoiding associations.
Traders form lending and saving associations especially at the place of work that help them improve their businesses. Members give money to one person or two according to agreed time.
Viater ishimwe is a shoe seller at Kimironko market. He said associations are good but they are stressing especially to the small scale entrepreneurs.
“Money is collected daily and every member will pay without any excuse. This means you have to borrow some where if you did not make any sales that day,” he said.
“The first one to get the money mostly benefits more since it’s injected in the business while the last one needs to have stable income to keep business going and contributing every day,” he added.
Annet Wibabara, another proprietor at Kimironko market confirmed that keeping to the standards of an association can lead to business collapse to some traders.
“I used to be a member of an association but pulled out due to financial constraints. Sometimes you could be forced to contribute all the money leaving nothing to buy new items. This created a slow back in my business hence quitting associations,” she lamented.
Richard Nsabimana, who sells potatoes at the same market, disclosed that it’s better to save your money in the bank than joining associations.
“Keeping savings in the bank allows a trader to access a loan in addition to accessing his or her money anytime for business expansion,” he added.
The Government of Rwanda views associations and Cooperatives as a potential vehicle through which the members could create employment and expand access to income-generating activities, develop their business potential, including entrepreneurial and managerial capacities through education and training; increase savings and investment, and improve social well-being with special emphasis on gender equality, housing, education, health care and community development.