Impact Of Microfinance On Economic Development For Developng Countries: A Case Of Zimbabwe (2010-2020)

Author

Ruvimbo Libelato

Title

Impact Of Microfinance On Economic Development For Developng Countries: A Case Of Zimbabwe (2010-2020)

Abstract

The study focused on the impact of micro finance institutions on economic development in Zimbabwe. The researcher aimed at assessing the extent to which MFIs have impacted on economy through recipients lives so as to ascertain with certainty whether standards of living improved by alleviating poverty and the financial services offered by MFIs were also assessed. Additionally, the research also focused on determining the challenges faced by MFIs and the relationship between the two. Suggestion by some scholars proposes that microfinance has a positive and significant impact on economic development while other scholars observed that microfinance has no significant impact. A descriptive research methodology was applied which enabled the researcher to plan the gathering and examination of information in order to produce the required proof. A target population consisted 5 microfinances selected from 187 registered MFIs in Zimbabwe. A sample of 25 respondents was drawn from five MFIs in which five individuals were selected which included a manager, 2 loan officers and 2 employees were selected from each institution. Both primary and secondary sources of data were used with questionnaires, personal interviews being research instruments used to obtain raw data. The study revealed positive impacts on society, women and the economy through the micro financing services offered. It can thus be concluded that MFIs play an important role in increasing economic development in Zimbabwe. In light of this, it is important that MFIs extend their outreach to appeal to many disadvantaged communities so that both economic development and economic growth have far reaching effects in Zimbabwe. However, due to time constraints, the researcher could not cover most areas related to MFIs and as such future researchers should focus on examining the ability of these organizations to serve more people, as it is impacted by the regulatory and oversight environment for microfinance institutions in Zimbabwe

Date

December 2023

Publisher

BUSE

Keywords

Microfinance, financial dualism

Economic development,

Financial inclusion,

Supervisor

N/A