An Analysis of the Impact of Micro-Finance Institutions to The Economic Growth of Zimbabwe: Case Study of Homelink Finance Pvt Limited (2004-2021)
- Author
- Peyala Paddington
- Title
- An Analysis of the Impact of Micro-Finance Institutions to The Economic Growth of Zimbabwe: Case Study of Homelink Finance Pvt Limited (2004-2021)
- Abstract
-
The purpose of the research was to examine the impact of microfinance institutions on Zimbabwe's economic growth. To counter the presumption that MFI services are a panacea for fostering economic growth, HomeLink Microfinance was used as a case study to improve numerous financial growth drivers such as poverty elimination, financial stabilization, job creation, and livelihood enhancement. The key features of Microfinance Institutions, as well as the financial services they provide, are also evaluated. The researcher made use of the study’s objectives to come up with a conclusion, these objectives include to analyze the impact of microfinance institutions to the Zimbabwean economy, to identify the roles played by the microfinance institutions only to mention a few. It was found out that the activities of microfinance institutions resulted in increased social interaction and socio-economic sustainability which in turn promoted economic growth. The researcher employed a descriptive research design, which allowed the researcher to structure the collection and analysis of data in order to provide the desired information. To obtain raw data from a sample of 80 questionnaires drawn from Microfinance, SMEs, and certain eminent individual people in society, both primary and secondary data were used, along with questionnaires data were used, with questionnaires and interviews as research tools. Data was graphically represented and tabulated. As per the study, there was income and employment advancement because there was a favorable lending effect in favor of claimants on diet and lifestyle advancements, business growth, household expenditure, and bringing advanced technologies to participants. Consequently, challenges being faced by MFIs in the bid to promote economic growth were also discussed taking into account the measures implemented and other proposed strategies so as to demystify these challenges. According to the study, microfinance institutions should implement a variety of strategies in order to further expand the market and be able to supply more clients, including reaching out to remote areas and becoming extremely involved in the agricultural sector. It is recommended that regulatory authorities provide supporting programs and regulations that encourage MFIs to subsidise registered SMEs that assist Zimbabwe's economic growth. They are also advised to ensure that MFIs operate in accordance with global quality standards for microfinance. APEX bodies such as ZAMFI are encouraged to establish capacity-building programs for MFIs in order to develop and equip them to conform to the laws that regulate their business functions. MFIs are also being urged to offer capacity-building services.
- Date
- 2022
- Publisher
- BUSE
- Keywords
- Microfinance Institutions
- Economic growth
- Poverty
- Supervisor
- N/A
- Item sets
- Department of Banking and Finance
- Media
-
Paddington Peyala.pdf