The impact of Covid-19 on the financial performance of microfinance institutions in Zimbabwe. A survey of FMC Finance.
- Author
- Tanaka Marufu
- Title
- The impact of Covid-19 on the financial performance of microfinance institutions in Zimbabwe. A survey of FMC Finance.
- Abstract
-
This study was mainly focused on investigating the impacts of COVID-19 pandemic on the financial performance of microfinance institutions with special focus FMC Finance in Zimbabwe. A descriptive statistics was adopted in which a random sample of 20 respondents was obtained through the use of a stratified random sampling. Data was collected using a close ended questionnaire. Data was then analysed using SPSS version 20 and correlation analysis technique .It was found that COVID-19 negatively affected the financial performance of microfinance institutions through fall in loans repayment, decline in loans disbursements, high nonperforming loans, liquidity challenges and closure of other branches. The study concluded that, COVID-19 imposed constraints affected financial performance and operational efficiency on the activities of microfinance banks. The study recommended that MFIs should digitize to cushion the negative effects of future pandemics. Online loan applications and loan approvals must be implemented by MFIs. The study also recommended that the regulatory framework for MFIs should design emergency funding and technical programs through Central Bank (RBZ) to support the growth of the microfinance sector in Zimbabwe.
- Date
- 2020
- Publisher
- BUSE
- Keywords
- Covid-19
- Impact
- financial performance
- Supervisor
- N/A
- Item sets
- Department of Banking and Finance
