Social Learning and Community Participation Key Factors for Financial Literacy among Rice-Farmers in Gisagara, Rwanda

Abstract

This paper aims to contribute to financial well-being and reduce high poverty levels through financial literacy. The paper investigates how social learning and community participation affect financial literacy among rice farmers in Gisagara, Rwanda. This is done by analysing a survey of 83 farmers using multiple regression analysis to examine the hypotheses that social learning and community participation have positive effects on financial literacy, including the examination of an interaction of the independent variables. Although the paper does not find any significant evidence to support these hypotheses, the results and limitations give implications for similar future research. The paper concludes by giving three policy recommendations. The first is focused on financial literacy learning making use of existing community gatherings called Umuganda. The second elaborates current policy’s focus on increasing financial long-term planning and the last emphasises the importance of focusing on increasing financial literacy among younger people and females.