STAKEHOLDER MANAGEMENT AND LOAN CAPITAL PROJECT PERFORMANCE BY EDIFY RWANDA

Abstract

The purpose of this project is to assess the influence of stakeholders’ management on loan capital project performance by Edify Rwanda. The research was grounded in systems theory, performance theory, and expectancy theory. A descriptive and correlational research design was employed for data collection. The sample included 201 participants: 60 head teachers, 60 school owners, 11 bank managers, and 70 Edify Rwanda staff. The sample size of 133 respondents, consisting of 126 for quantitative data and 7 for qualitative data, was determined using the Slovin formula. A key finding is that stakeholder involvement significantly enhances the relevance and appropriateness of project objectives, achieving a mean score of 4.23. An overwhelming 87.3% of respondents agreed that stakeholder participation is vital for aligning project goals with community needs. Additionally, stakeholder involvement fosters a sense of ownership and commitment, with 80.1% of participants agreeing that engaged stakeholders are more invested in project success (mean score of 3.92). However, challenges were identified regarding community involvement in project selection, with a mean score of only 2.26, indicating that 73.8% of respondents felt that community input was limited. Similarly, the community's role in providing labor for project implementation received a low mean score of 2.39, suggesting minimal participation in this aspect. While a moderate level of agreement was noted regarding community involvement in maintenance (mean score of 3.22), perceptions of equitable benefit distribution were mixed, with a mean score of 3.25 indicating that nearly half of the respondents felt benefits were not enjoyed by all residents. The study also highlighted the importance of effective communication (mean score of 4.21) for open communication channels. However, the adequacy of updates regarding project milestones was rated lower (mean score of 3.71), indicating room for improvement. Overall, the findings suggest that while Edify Rwanda demonstrates a commitment to stakeholder engagement, there is a need for enhanced strategies to ensure meaningful community involvement and equitable benefit distribution. In conclusion, while the organization shows a strong commitment to involving stakeholders and maintaining transparent communication, challenges remain in ensuring that community input is adequately integrated into project selection and implementation processes. Addressing these challenges is essential for optimizing project outcomes and fostering sustainable development. As recommendations, Edify Rwanda should enhance community involvement in project selection, strengthen feedback mechanisms, increase transparency in communication, promote equitable benefit distribution.