The GCF- funded TREPA project is transforming Rwandan communities through financial literacy

The Power of Financial Education and Community Collaboration

The TREPA project journey began with a targeted intervention to equip local community members with essential financial literacy. Through comprehensive training sessions on financial literacy, savings mobilization, saving groups' functionality, saving for purpose, and climate change awareness and adaptations, participants understood savings group dynamics, financial management, and effective engagement with formal financial institutions.

“Before TREPA, many of us had little knowledge about saving, financial planning, or how climate change was impacting our livelihoods,” says Mrs. Mukamwiza Donathile, leader of the Tubungabunge Ibidukikije (literally means let’s save the environment) savings group. Through the training, we gained valuable skills in financial management, savings with a purpose, and adaptation to climate change. We’ve also learned how to engage with microfinance institutions. For instance, when we were short of 1 million RWF for our 3.5 million RWF maize farming project, we successfully secured a loan from our local SACCO. Mrs. Donathile Concluded.

Group members pose for a photo during a tour of their maize farms. Photo by Cordaid

 Thanks to initiatives like the Community Environmental Conservation Scheme (CECF) and the Umusave Fund.

Designed to support small-scale, environmentally sustainable projects, this initiative, like CECF or Umusave Fund, provides accessible financing to local groups, particularly those engaged in green micro-projects and climate-resilient agriculture.

The training laid the groundwork for action. Having acquired practical skills, community members formed savings groups that have fostered a culture of trust, cooperation, and collective ambition. These groups pooled resources for self-financed development and demonstrated their financial viability by securing competitive loans. This achievement showcases their growing financial confidence and potential for sustainable growth.

Diversification and Value Creation: A Model for Economic Resilience

Although previous lessons from interventions have established that agriculture alone does not provide sufficient livelihood opportunities in many rural areas, diversification into non-farm activities is seen as a form of self-insurance. This is because diversification offers people options for coping with a crisis. The result is that rural households diversify their income sources by combining two or more income-generating activities to enhance consumption smoothing and acquire other basic needs. Through the TREPA project, the formation of savings groups has facilitated the launch of diverse income-generating projects, marking a significant step toward economic self-sufficiency.

Members of Tubungabugibidukikije have successfully acquired modern beehives. Photo by Cordaid

For instance, Twitekubukungubwacu, Igitinubuzima, and Tubungabungeibidukikije embarked on maize farming ventures, with a clear vision of scaling their operations to generate higher yields and improve their economic status. The maize farming business, designed for long-term sustainability, exemplifies the potential of rural communities to thrive when equipped with financial tools and local knowledge.

One example of innovation emerged when Tubungabungibidukikije, propelled by the training, took an entrepreneurial leap by investing over 500,000 Rwandan Francs into beekeeping. This investment resulted in the establishment of 12 modern beehives alongside 15 traditional hives. The success of Tubungabungibidukikije, not only diversifies their income streams but also contributes to local biodiversity and the broader sustainability of rural livelihoods. To date, the group has accumulated a combined wealth of 9.5 million Rwandan Francs, a clear testament to the power of community-driven development and financial empowerment.

“We believe that once we harvest and sell our maize, we will be able to repay the bank loan, lease a larger piece of land to increase yields, and then buy more beehives,” says Mr. Karishema Innocent, leader of the Igitinubuzima savings group. “If we face another capital gap, we won’t hesitate to borrow again. Our vision is clear: within the next three years, we aim to own a large farm equipped with an irrigation system to help us withstand the effects of climate change. We also anticipate harvesting around 300 liters of honey per season, generating approximately 3 million RWF per harvest. This will improve our livelihoods and strengthen our community’s resilience.” Mr. Innocent elaborated.

Through the TREPA project, women are at the forefront of its implementation.. Photo by Cordaid

Challenges and Opportunities for Scaling

A major hindrance is a shortage of trained financial management professionals, particularly accountants who can accurately track transactions, produce reliable financial reports, and facilitate access to further financial resources.

“One of our biggest challenges is the shortage of trained financial professionals, especially accountants who can accurately track and record our transactions and generate reliable financial reports,” says Mr. Karishema, leader of the Igitinubuzima savings group. “This gap in the future may limit our ability to access more financial resources, scale our activities, and ensure transparency. Addressing this need is critical for our group to grow and operate sustainably.” Mr. Innocent added.

While this challenge persists, the groups have demonstrated high resilience. Their success to date, against the backdrop of limited resources, underscores the value of investing in capacity-building and the transformative potential of community-led economic initiatives. With continued support from the TREPA project, the groups are well-positioned to overcome these hurdles and expand their impact, fostering financial stability and creating new opportunities for rural families.

ABOUT TREPA

The Transforming Eastern Province through Adaptation (TREPA) project is a six-year initiative (2021–2027) that is currently on course to restore degraded landscapes and enhance climate resilience in Rwanda's Eastern Province. Funded by the Green Climate Fund (GCF), the project is accredited to the International Union for Conservation of Nature (IUCN) as lead. At the same time, implementation is done in collaboration with the Rwanda Forestry Authority (RFA), CIFOR-ICRAF, World Vision, and Cordaid. 

The project demonstrates Cordaid’s commitment to fostering sustainable, locally led community transformation. The TREPA Project has shown that significant progress can be achieved even in the most remote areas by prioritizing financial education and creating platforms for community collaboration. This intervention clearly illustrates how empowering individuals with the right knowledge and tools can catalyze long-term, positive change in local economies.

By supporting financial inclusion, promoting local entrepreneurship, and addressing key challenges such as financial literacy and technical expertise, we can contribute to the long-term prosperity of rural communities. 

This case is a valuable model for policymakers, donors, and other stakeholders interested in creating scalable solutions that address rural poverty and foster sustainable development.

Gender considerations are thoroughly integrated into the TREPA project. Photo by Cordaid