The Effect of Financial Management Practices on Project Performance: Evidence from the Rwanda Agri- Biotechnology Program (RABP-CMP)

Tuyisenge Jean d’Amour & Thomas Tarus
University of Kigali,
Email: tuyisengedamour@gmail.com

Abstract: This study examined the effect of financial management practices on project performance using the Rwanda Agri-Biotechnology Program for Cassava, Maize, and Potato (RABP-CMP) in Musanze District, Rwanda. Specifically, the study assessed the influence of budgeting practices, financial reporting, internal control systems, and resource allocation on program performance. Guided by the Resource-Based View, Agency Theory, and Stewardship Theory, the study adopted descriptive and explanatory research designs and applied a census approach involving 151 project stakeholders, of whom 149 completed structured questionnaires. Data were analyzed using descriptive statistics, Pearson correlation, and multiple linear regression. The findings revealed significant positive relationships between budgeting practices (r = .641, p < .01), financial reporting (r = .689, p < .01), internal controls (r = .721, p < .01), resource allocation (r = .632, p < .01), and project performance. Regression results showed that budgeting (β = .241, p = .002), financial reporting (β = .214, p = .009), internal controls (β = .298, p < .001), and resource allocation (β = .187, p = .018) significantly predicted performance. The model explained 46.1% of the variance in program performance (R² = .461). Internal controls emerged as the strongest predictor. The study recommends strengthening participatory budgeting, enhancing financial reporting quality, reinforcing internal control systems, and improving strategic resource allocation in donor-funded agricultural programs.