The contribution of product development to the growth of microfinance institutions in Uganda :

Abstract

The research was conducted on the general objective of examining the contribution of product development to growth of microfinance institutions, case study of Kazo Angola. Specific objectives included the product development strategies adopted by MFI, growth performance indicators of MFI and relationship between product development and growth of microfinance institutions. The researcher used both primary and secondary data. The primary data was got from Kazo Angola Sacco employee and clients (past, present and non-beneficiaries) and from management. The information was obtained by use of self-administered questionnaires and interviews. Secondary data was obtained from published materials, which included journals, textbooks magazines, internal reports and newspapers. The study came up with the several conclusions and recommendations such increase on the product portfolios offered to the rural people and spreading further to the areas by MFIs. The study concluded that process of product development is an influential factor to the growth and development of the microfinance industry in Uganda. The researcher recommended that the management of MFIs should stretch further to rural areas so as to be able to serve the needs and wants of the rural business men. Cost benefit analysis should be considered when such a decision is being embarked on so that both parties can equally benefit from the venture.