STAKEHOLDER MANAGEMENT AND NON-GOVERNMENT ORGANIZATION PROJECT PERFORMANCE IN RWANDA,
A CASE OF LIGHT FOUNDATION PROJECT BY FXB RWANDA IN NYARUGURU DISTRICT.
Abstract
Effective stakeholder management is a key determinant of success in development projects implemented by non-governmental organizations (NGOs). Despite its importance, many NGO projects in Rwanda continue to face challenges in coordination, participation, and sustainability due to limited stakeholder engagement. This study examined stakeholder management and its influence on project performance, focusing on the Light Foundation Project implemented by FXB Rwanda in Nyaruguru District. Specifically, the study aimed to (i) assess the nature of stakeholder management approaches used by FXB Rwanda, (ii) evaluate the level of project performance, and (iii) analyze the relationship between stakeholder management and project performance. A mixed-method research design was employed, integrating quantitative and qualitative approaches. Data were collected from 208 respondents, including 200 beneficiaries selected through stratified random sampling and 8 key informants selected purposively. Quantitative data were analyzed using descriptive statistics, Pearson correlation, and multiple regression, while qualitative data were analyzed thematically to provide contextual insights.Findings revealed that FXB Rwanda employed structured stakeholder management practices, including stakeholder identification, communication, feedback mechanisms, and conflict resolution. Project performance was high across timeliness, quality outcomes, beneficiary satisfaction, and sustainability. Correlation and regression analyses confirmed a strong and statistically significant positive relationship between stakeholder management and project performance, with stakeholder management explaining 61% of the variation in project outcomes (R² = 0.61, p < 0.001). The study concludes that effective stakeholder management enhances NGO project performance and validates Stakeholder Theory by demonstrating that actively considering stakeholder interests throughout the project cycle improves outcomes. Recommendations include strengthening participatory engagement, formalizing feedback and conflict resolution systems, and enhancing communication strategies to sustain project effectiveness.
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