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Since the launch of the Second Economic Development and Poverty Reduction Strategy (EDPRS 2) as a home stretch of vision 2020, the government of Rwanda has promoted the formation of co-operatives as a way uplifting the masses out of poverty.
BRD management and Adorwa cooperative during the launch of multi- million complex in question
But all has not be grossy for some cooperatives as many are struggling to stay afloat with some succumbing their property to banks after failure to repay loans.
One of the affected cooperatives is Adarwa cooperative that is made up of former carpenters in the Gisozi area of Kigali.
Mathias Dukunzuwaturemye, the managing director of Adarwa cooperative noted that the members have been heavily affected as they are set to lose all their investments and savings to one of their lenders.
“We acquired a loan to set up a multi- million complex that we expected to attract a lot of clients but as of now only 32 of the 300 available spaces have been taken,” he states.
“We asked the bank to give us more time but they seem reluctant and only government intervention can save us,” he further adds.
When contacted the bank in question, the development bank of Rwanda (BRD), declined to comment on the issue saying they are waiting for legal counsel.
