Effect of Financial Management Practices on Performance of Road Construction Project of Ngoma – Ramiro Upgrading Project
Xavier Nshimiyimana and Daniel Mburamatare
University of Kigali, Rwanda
https://orcid.org/0009-0002-3826-803X
Email: xaviernshimiyimana96@gmail.com
Abstract: The study evaluated the effect of financial management practices on the performance of the Ngoma-Ramiro Upgrading Project in Rwanda. Specific objectives involved assessing the effect of financial planning, financial risk management, financial reporting, and financial monitoring on the performance of the Ngoma – Ramiro Upgrading Project. The study population comprised 146 individuals, including project managers, engineers, skilled field officers, RTDA officials, and local leaders directly associated with road work. A census method was employed, in which all 146 members of the target population were invited to participate, ensuring high precision and eliminating sampling error. Primary data were collected through structured Likert-scale questionnaires and semi-structured interviews, while documentation was used to analyze official project records and budgets. Statistical analysis was performed using SPSS version 29. The multiple regression analysis demonstrated that all four financial management practices exerted a positive and statistically significant impact on the performance of the Ngoma Ramiro Upgrading Project. Specifically, financial planning exhibited the strongest predictive effect (B = 0.329, p < 0.05), followed by financial risk management (B = 0.297, p < 0.05), financial reporting (B = 0.194, p < 0.05), and financial monitoring (B = 0.164, p < 0.05). The study therefore concluded that these independent variables act as critical predictors of overall infrastructure success. It is highly recommended that project administrators enhance budget accuracy controls, maintain comprehensive risk registers, and enforce timely financial reporting to optimize practical construction outcomes.
