Micro Finance Sector in Zimbabwe: An Appraisal of the SocioEconomic Performance of the Sector in Masvingo Province, Zimbabwe in the Dollarisation Era
Journal Title: International Journal of Business and Management Invention - Year 2017, Vol 6, Issue 2
Abstract
The purpose of the study was to investigate the socio-economic performance of the micro finance sector in Zimbabwe in the post Zimbabwe dollar era. The descriptive survey research design was used to gather primary data from respondents through questionnaires and interviews in order to generate research findings and conclusions. The research study mainly drew primary data from fifty Central Bank (The Reserve Bank of Zimbabwe) licensed MFIs which were operational in Masvingo Province in the period under review. The study established that the majority of micro finance borrowers were the middle class who were employed and earning a monthly salary. The study found out that the depth outreach was poor. It was also discovered that the greatest proportion of micro finance institutions (MFIs) loans was meant for consumption expenditure. The study also established that interest rates were too high for borrowers and as a result some borrowers were defaulting. The other finding of the study was that micro loans had very little impact on the welfare of the rural and vulnerable people of our society. The knowledge of the impact of microfinance on borrowers helped micro lenders to adapt in order to achieve their social goals. Results of research studies carried out in other countries had mixed findings on the impact of microfinance on the poor rural and vulnerable people. Some researchers labelled microfinance as a demonic attack on the poor as it was considered to perpetuate widespread poverty. Some studies have concluded that microfinance has a positive contribution to economic growth and development and the empowerment of the poor. This study believed that MFIs in Zimbabwe were not achieving their social objectives. The research study therefore ended by recommending that there was need for the sector to revamp its operations in order to align its goals, mission and vision towards sustainable development.
Authors and Affiliations
Mr Ephraim Matanda
Keywords
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