RESEARCH PROPOSAL EXAMPLE

TOPIC:
THE CONTRIBUTION OF SOCIAL SECURITY FUND OF
RWANDA ON HOUSING DEVELOPMENT FROM 2000
TO 2009

By Emmanuel MBONIGABA

Undergraduate in Economics

National University of Rwanda

P. O. Box 117 HUYE

RWANDA

HUYE September 20, 2010

 1

GENERAL INTRODUCTION

1.0 Background of the study

It is now universally admitted that no stable and sustainable development is possible without
social peace, and no social peace is possible without social security for all. The role of social
security is increasingly being recognized by governments and international financial
organizations for its role in poverty alleviation, promotion of social justice, and economic
growth. (MINECOFIN, 2009:1)

Standards being developed are largely influenced by the industrialized world and the constraints
imposed by attempts to control land space, determine building standards and the types of housing
to be developed. That provision of homes equipped with all basic necessities for comfort health
and safety is also a case where RSSF (Social Security Fund of Rwanda) intervenes with big
money in home housing not only for poor citizens but for housing for business in Rwanda towns
and cities. As it is much known Rwandans experience the insufficient housing equipments for
shelter either at their homes or work places. This has been a big challenge for Rwanda individual
investors, government, and citizens. Rwanda recognizes that planned housing is required as
opposed to spontaneous or dispersed settlements. Therefore the SSFR contribution is one option
to solve the problem.

Real Estate investment like houses is Investments in income producing properties located in
major Rwandan cities or municipalities that are expected to produce an attractive return over a
long-term period. (SSFR, 2006:9). The SSFR invested its funds in construction of schools,
hospitals, business buildings, etc around the country. This is not only the purpose for rising its
earnings and benefits but also such policy is contributing to national development of Rwanda.

1.2. Statement of the problem

The National Housing Policy of 2004 points out that the existence of a development plan is a
pre-condition to any form of development. Housing is governed by urban and construction
standards which cannot be adapted to many households due to their limited access to long-term
credit facilities and adequate financial resources (www.mininfra.gov.rw, accessed on March 23,
2010). Housing becomes a big concern for people living in urban areas one hand.
 2

Therefore institutions like RSSF whose facilities to invest in housing development were called to
intervene in that sector.

On the other hand people out of towns are experiencing same problem of being homeless and it
is nearly the same case people living in urban area as well. Apart from poverty that hinders
people better living standards, Homes were burnt down during the 100-days genocide, leaving
the country with a severe housing problem. And, as hundreds of thousands of Rwandans returned
home in the years following the killings (www.irinnews.org, accessed on March 23, 2010 )
needed shelter. The houses needing improvement were usually made of mud and daub, with dirt
floors and no doors or windows. They were built directly onto the ground with no foundations
and their roofs offered inadequate protection, rendering the structures liable to collapse
(www.irinnews.org, accessed on March 23, 2010). Some use to spend night in hut during last
decade but recently there has been some government improvement with the collaboration and
help from its citizens during common works.

Generally speaking, housing problems are part of urban development projects and are very
seldom found in Rwanda rural environments (settlements). Owner of inadequate houses are
strongly required to build new ones or to leave the space for those who are able to occupy the
place. The justification for urban projects lies in the need for a better use of space and the
integration of population into a modern economy (Agency for international development, 1982:
42-44) with access to infrastructures.

The researcher wonders to find out whether or not the pensions funds accumulated by SSFR has
had an impact on home equipment in case they invested in that sector. As we know, security
funds specifically pension funds are an especially important financial institution and market that
play a role in the reallocation of individuals expenditures over time, then after pension funds
bridge the gap rising desired expenditure and the abrupt decline in income at the cessation of
individual’s work carrier. (Peter, Kolari, et Fraser, 1993: 632-633). To achieve the will of both
parties, there should be the investment of those funds in a portfolio of financial assets (stocks and
bonds) and sometimes in real assets (such as real estate) (Peter, Kolari, et Fraser, 1993: 632-
633).
 3

CSR (Caisse Social du Rwanda) was created to provide social security benefits to qualifying
beneficiaries. For this to be done, the collected funds have to be productively invested. On this
note, the investment policy and guidelines must be designed and investment plan drawn and its
implementation monitored (SSFR, 2006:8). Therefore the RSSF is called for investing its money
as pensions collected from workers into Rwanda housing development not only for better
management and development.

1.3. Objectives

1.3.1. General objectives

How invested security funds in housing development are effectives and efficient is the core
question in this research project and the main objective is to known the level of SSFR
contribution to housing of Rwanda. Different SSFR policies concerning investment in housing
were studied to answer this question. This further ensures the quality of life (shelter) now and for
coming generations in Rwanda.

1.3.2. Specific objectives

Following aims are focused throughout the research:

 To identify the role of SSFR in development and availability of houses and shelters in
Rwanda.
 To determine and identify the level of SSFR’s contribution in providing shelter to
business dealers and home (apartment).
 To identify the use of funds of different actors towards housing development.

1.4. Research questions

Following main and further sub-questions are made to achieve the set objectives and aims of the
study:
How RSSF invested security funds in housing are effective and efficient to those in need of
shelter like homes (apartments), offices, and business buildings? This is the main question of the
research project but to answer this research question the following sub questions are formulated.
 Is the SSFR’s contribution socio- economically significant to housing development in
Rwanda?
 4

 At what level the SSFR is contributing efficiently and effectively to shelter and business
buildings national wide?

1.5. Research Hypothesis

How RSSF invested security funds in housing for Rwandans are effective and efficient to those
in need of shelter like homes (apartments), offices, and business buildings.

1.6. Significance of research project

This research would be a milestone for different individuals, institutions, and organizations at
different levels who are or will be interested to develop and provide good houses in Rwanda
because, this project provides to them a complete feasibility assessment of different housing
options with respect to housing affordability, government policies and economy of Rwanda and
also tell what is really possible to implement in the presence of different conflicting interests.

1.7. Methodology

The research study employs two sources of data, the primary data and secondary source of data.
In both parts, the contents include the following methods: Data collection, documentation
(reports, journals, textbooks, and websites), interviews, and questionnaire.

1.8. Scope and Limitation of the research project

The study is limited to the SSFR investment in real estate particularly in housing investment for
the period of 10 years (2000-2009) the study considers houses built by SSFR inside Rwanda.

The study was not covered in all corners of SSFR housing investment in the sector mentioned
above due to different constraints such as money and time, with the resources of the researcher
which did not permit him to accomplish this study effectively and with time which was a
constraint in the process of this research during this period.
 5

1.9. Outline of research project

This research consists of five chapters, chapter one is the general introduction, and this one
presents the background, the statement of the problem, the objectives of the study, research
hypothesis, the significance of the study, scope and limitation of the study, methodology, and
finally the outline of research project.

Chapter two, literature review which is critical analysis of what other researchers have said on
the subject and where the research projects fit in, the research gaps to be clearly identified.

Chapter three is an explanation of why the data are collected, what data collected, from where
data collected, where data are collected and how to collected data and how analyze.

Chapter four presents data analysis, results and discussions of findings. Analysis of results, this
chapter described the research findings their analysis and look an attempt of interpreting the
main findings of the study based on the stated objectives.

Chapter five was the summary of the major findings; conclusion and recommendations is given
in this chapter.
 6

REFERENCES

1. Peter S. Rose, James W. Kolari, Donald R. Fraser., (1993), “Financial Institutions:

Understanding and Managing Financial Services”, 4th Edition, IRWIN Homewood,
Boston.
2. Agency for international development Washington D.C, Eight conference on housing in
Africa, Gaborone, Botswana, May 30-June 4, 1982, University of Botswana. Pp 42-44.

3. IRIN Africa | RWANDA,(2004): Government implements low-cost housing scheme

known as Imidugudu [Online]. Available:
http: www.irinnews.org/report.aspx?reportid=51581 [ accessed on March 23, 2010 ]
1. National Urban Housing policy for Rwanda. Public interventions within the framework
of the urbanization process of Rwanda [online].
Available:http://www.mininfra.gov.rw/index2.php?option=com_docman&task=doc
[accessed March 23, 2010]
 7

ANNEXES

Annex I: for example questionnaire used in research project