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Bank of the Republic of Burundi BANK OF THE REPUBLIC OF BURUNDI BURUNDI NATIONAL FINANCIAL INCLUSION SURVEY August 2012 Burundi National Financial Inclusion Survey TABLE OF CONTENTS Page EXECUTIVE SUMMARY ..................................................................................................................................... 1 1.0 INTRODUCTION ...................................................................................................................................... 7 1.1 Survey Background and Objectives .............................................................................................. 7 1.2 Definition and Measurement of Financial Inclusion ..................................................................... 7 1.3 Structure of the Report ................................................................................................................... 9 2.0 METHODOLOGY ..................................................................................................................................... 9 2.1 Survey Components and Implementation Period ......................................................................... 9 2.2 Demand Side Survey Methodology ............................................................................................... 9 2.3 Focus Group Methodology ........................................................................................................... 12 2.4 Supply Side Survey Methodology ............................................................................................... 13 2.5 Framework for Analysis and Evaluation of the Survey Findings ............................................... 14 3.0 SUPPLY OF FORMAL FINANCIAL SERVICES ................................................................................. 17 3.1 Number and Location of Access Points ...................................................................................... 17 3.2 Supply of Savings Products ......................................................................................................... 20 3.3 Supply of Loan Products .............................................................................................................. 21 3.4 Supply of Payment Means ........................................................................................................... 22 3.5 Supply of Money Transfer Services ............................................................................................ 23 3.6 New Financial Products Development ........................................................................................ 23 3.7 Conclusions with Respect to the Supply of Financial Services ................................................. 24 4.0 ACCESS TO FORMAL FINANCIAL SERVICES ................................................................................ 25 4.1 Knowledge of Financial Services................................................................................................. 25 4.2 Physical Access to Financial Institutions .................................................................................... 28 4.3 Access to an Account ................................................................................................................... 36 4.4 Access to Credit ............................................................................................................................ 40 4.5 Access to Other Financial Instruments ....................................................................................... 42 4.6 Conclusions with Respect to the Access to Financial Services ................................................ 43 5.0 USAGE OF FORMAL FINANCIAL SERVICES ................................................................................... 44 5.1 Use of Means of Payment ............................................................................................................ 44 5.2 Usage of Savings.......................................................................................................................... 45 5.3 Use of Credit ................................................................................................................................. 52 5.4 Use of Money Transfer Services ................................................................................................. 56 5.5 Combined Use of Financial Services .......................................................................................... 57 5.6 Use of Informal Financial Systems .............................................................................................. 57 5.7 Conclusions With Respect to the Usage of Financial Services................................................. 60 Bank of the Republic of Burundi/Développement international Desjardins Page i Burundi National Financial Inclusion Survey 6.0 QUALITY OF FORMAL FINANCIAL SERVICES................................................................................ 61 6.1 Key Quality Indicators .................................................................................................................. 61 6.2 Conclusions with Respect to the Quality of Financial Services................................................. 65 7.0 KEY FINDINGS AND RECOMMENDATIONS..................................................................................... 66 7.1 Global Measurement of Financial Inclusion in Burundi .............................................................. 66 7.2 Global Measurement of Financial Inclusion by Province ........................................................... 68 7.3 Summary of the Key Findings of the Survey .............................................................................. 70 7.4 Recommendations ........................................................................................................................ 72 8.0 CONCLUSION ........................................................................................................................................ 77 Annex A: Format of the Financial Inclusion Survey Questionnaire LIST OF GRAPHS Page Graph 1 – Profile of Financial Inclusion: International Comparison ................................................................. 5 Graph 2 – Knowledge of Banks (n = 3220) ...................................................................................................... 25 Graph 3 – Knowledge of MFIs (n = 3220) ........................................................................................................ 26 Graph 4 – Knowledge of Financial Terms (n = 3220) ..................................................................................... 27 Graph 5 – Knowledge of Financial Services (n = 3220) .................................................................................. 27 Graph 6 – Distance from the Nearest Access Point (n = 3220) ..................................................................... 34 Graph 7 – Means of Transportation Available to Get to the Nearest FI (n = 2817) ...................................... 35 Graph 8 – Travel Time Needed to Get to the Nearest FI (n = 3220) ............................................................. 35 Graph 9 – Percentage of Adult Population with an Account in a Financial Institution (n = 3220) ............... 36 Graph 10 – Percentage of Respondents with an Account in a Financial Institution by Province................. 37 Graph 11 – Use of Third Party’s Account (n = 154) ........................................................................................ 37 Graph 12 – Obstacles to Opening an Account in a Financial Institution (n = 2816) ..................................... 39 Graph 13 – Percentage of Respondents Who Applied for a Loan or an Overdraft Facility in the Past 12 Months (n = 3220) .......................................................................................................................... 40 Graph 14 – Reasons Hindering Application for a Loan (n = 3108) ................................................................ 41 Graph 15 – Percentage of Respondents who Obtained a Loan at a Financial Institution In The Past 12 Months by Province .............................................................................................. 42 Graph 16 – Access to Other Financial Instruments (n = 3220) ...................................................................... 42 Graph 17 – Frequency of Use of Payment Means (n = 3220) ........................................................................ 44 Graph 18 – Percentage of Respondents Saving on a Regular Basis (n = 3220) .......................................... 45 Graph 19 – Location of Savings (n = 2028) ..................................................................................................... 46 Graph 20 – Reasons for Opening an Account in a Financial Institution (n = 404) ........................................ 47 Graph 21 – Frequency of Use of Accounts (n = 404) ...................................................................................... 48 Graph 22 – Types of Accounts Held in Financial Institutions According to the Survey (n = 404) ................ 49 Graph 23 – Use of Credit (n = 94) .................................................................................................................... 53 Graph 24 – Savings in Informal Financial Systems in the Past 12 Months (n = 3220) ................................ 58 Graph 25 – Percentage of Respondents Who Have Received a Loan from an Informal Source in the Past 12 Months (n
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