Analyzing challenges that are faced by Microfinance Institutions in Zimbabwe: A case study of K. C. I. Bindura.
- Author
- Mungana, Danai L.
- Title
- Analyzing challenges that are faced by Microfinance Institutions in Zimbabwe: A case study of K. C. I. Bindura.
- Abstract
- This research entitled analysing challenges that are faced by microfinance institutions in Zimbabwe. A case study of K.C.I Microfinance Bindura, was conducted with the aim to analyse the challenges that are faced by microfinance institutions in Zimbabwe. The objectives of the study were to identify regulatory challenges faced by microfinance institutions, to analyse the financial management practices, loan policies and procedures followed by microfinance institutions and to recommend strategies for microfinance institutions in Zimbabwe. This research adopted a mixed methods approach which enabled the research to gather both statistical and subjective data allowing for data triangulation. Questionnaires and semi structured interviews were used to gather quantitative and qualitative data respectively. Qualitative data was analysed thematically while quantitative data was analysed used descriptive statistics. Findings revealed that limited access to capital and funding sources, fluctuating macroeconomic conditions, regulatory challenges and limited technological infrastructure were top challenges faced by microfinance institutions. The study concluded that microfinance institutions should employ operational, financial, risk management, and outreach strategies to improve their effectiveness and sustainability. The study left recommendations for policymakers to work towards simplifying and harmonizing the regulatory frameworks for microfinance institutions, and for microfinance institutions to prioritize robust credit risk assessment, proactive default management, and operational risk mitigation strategies to enhance portfolio quality and financial stability.
- Date
- June 2023
- Publisher
- BUSE
- Keywords
- Microfinance institutions
- Financial management practices
- Supervisor
- Mr Ngwende
- Item sets
- Department of Accountancy