The Government of Rwanda has adopted a very ambitious financial sectordevelopment plan which is at the implementation stage. This has made the administration to create atleast one SACCO at every administrative level hence known as '' umurenge''. This plan is captured in the vision 2020 under the Economic Development and Poverty Reduction Strategy (EDPRS). It is realized that micro financial institutions MFIs is an important sector in mobilising savings and availability of credit at reasonable rates and other financial services for investment to the rural majority. However, despite all these effort by Government, the level of domestic savings remains very low and the financial exclusion highly alarming. MFIs is a strategy to eradicate poverty amongst the vulnerable youth and women. Mobile money is a tool to allow individuals to transact using cell phone technology.

The study will explore how Digital Economy has gained competitive advantage over SACCOs/ MFIs. The study is motivated by the acceptance and embracing of technology (ICT) amongst low income earners giving it competitive advantage and encouraging e-commerce services in Rwanda. A qualitative analysis will be undertaken, and an in depth examination of the variables using business models to establish a relationship in the Rwandan context.