Objective & Functions of the FSDS
In a 2005 Financial Sector Assessment Program (FSAP) report prepared jointly by the World Bank and IMF, a number of weaknesses were diagnosed in the financial sector and recommendations for reforms to address weaknesses made. The Financial Sector Development Program (FSDP) constitutes that response.
A team was recruited and prepared the FSDP under the guidance of the central bank and working closely with a national steering committee composed of key stakeholders in each of the areas addressed by the FSDP.
A Cabinet paper was prepared, which presented those elements of the FSDP which represented policy issues together with a detailed matrix of actions needed to implement them. The Cabinet approved the paper and comprehensive policy program in November 2006 and, in principle, endorsed the detailed action matrix which supports it.
Rwanda’s long-term development plan, as articulated in Vision 2020, seeks to transform Rwanda into a middle-income country and an economic trade and communications hub by the year 2020. An effectively functioning financial sector is fundamentally important and essential element for achieving this objective. Rwanda seeks to develop a financial sector that is effective, in particular, by:
1. Expanding access to credit and financial services;
2. Enhancing savings mobilization, especially long term savings;
3. Mobilizing long-term capital for investment;