The Role of micro-finance institutions in reducing poverty among women in Zimbabwe

Author

Mugariri, Digital W.

Title

The Role of micro-finance institutions in reducing poverty among women in Zimbabwe

Abstract

The microfinance program has been widely recognized as a development strategy with the potential to improve the economic performance of impoverished individuals. In Zimbabwe, the government has actively attempted to address poverty through initiatives such as microfinance loans. However, despite these efforts, poverty remains prevalent and widespread, especially amongst women. This study examines the impact of microfinance on poverty reduction amongst women in Zimbabwe. The study focuses on the social and economic empowerment of women, as well as the reduction of household poverty and the overall economic development. It aims to demonstrate how microfinance works in reducing poverty and improving the living standards of women in Zimbabwe, particularly by providing access to finance for poor women. Data was collected from RBZ website, and descriptive statistics and a Binary Logit Regression Model were used to analyze the data. The results indicate that microfinance loans have had a significant positive effect on reducing poverty amongst Zimbabwean women. The study suggests that microfinance institutions have a direct impact on household income by promoting productivity, diversifying production, and maximizing the utilization of available resources. The government is advised to create a more supportive environment to enhance the effectiveness of microfinance operations, particularly among women. Additionally, microfinance institutions are encouraged to raise awareness about their services and reduce the strict requirements for accessing loans.

Date

June 2025

Publisher

BUSE

Keywords

Micro-finance

Reducing Poverty

Women

Supervisor

Ms Hlupo