Gender and Financial Inclusion in Ngoma District of Rwanda

This research examines financial inclusion in Ngoma District, a rural area in Rwanda’s Eastern Province, using quantitative data from the FinScope 2024 survey. The analysis draws on a weighted sample of 235,812 individuals aged 16 years and above and focuses on access to and use of financial services, saving behaviour, and credit utilization among men and women. Data was analysed using descriptive and comparative statistical techniques to generate financial inclusion indicators, with all computations conducted using Stata. The results show that, although access to financial services has expanded considerably, notable gender disparities persist across all dimensions of financial engagement. Overall, 95% of men and 88.8% of women are financially included, leaving 5% of men and 11.2% of women excluded from both formal and informal financial systems. This gap highlights enduring structural and socioeconomic barriers that disproportionately affect women. Gender differences are particularly evident in the use of formal financial services: 93.9% of men engage with regulated financial institutions compared with 78.4% of women, representing a 15.5 percentage point gap and indicating women’s limited access to secure and diversified financial channels. Barriers to financial inclusion are largely demand-driven and include insufficient income, perceptions that financial services primarily serve wealthier individuals, and limited knowledge of available products. These challenges reflect the interaction of economic vulnerability, behavioural perceptions, and information asymmetries in shaping financial behaviour and exclusion. Addressing these constraints requires targeted interventions, including gender-sensitive financial literacy programs, community outreach, and measures to improve income stability and economic resilience. Gender disparities are especially pronounced in saving behaviour. While 61.9% of men use formal savings mechanisms, only 44.4% of women do so, and one-third of women reported not saving in the previous year compared with 19.1% of men. Insufficient income, unemployment, limited financial knowledge, and short-term consumption priorities remain the main barriers to saving. Promoting inclusive, low-entry, and commitment-based savings products can strengthen long-term financial planning while reducing gender gaps in savings participation. Credit utilization remains low for both sexes but is more constrained for women. Only 13.5% of men and 10% of women access formal loans, while women rely more heavily on informal borrowing (36.5% versus 26.7% of men). Key obstacles include fear of repayment, lack of collateral, and perceived high interest rates. Policy responses should prioritize expanding credit guarantee schemes, promoting group-based lending, and encouraging the development of affordable, transparent, and simplified credit products to enhance confidence and participation in formal credit markets, particularly in rural areas.
Key words: Financial services, formally served, financially excluded, gender disparities.