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Title: Microfinance Institutions and Poverty Reduction in Rubirizi District, Western Uganda
Authors: David, Asiimwe
Keywords: Microfinance Institutions and Poverty Reduction
Rubirizi District
Issue Date: Aug-2012
Publisher: Kampala International University, school of masters in development studies
Abstract: Microfinance has been one of the strategies for poverty alleviation in developing countries. Following the success of the Grameen Bank in Bangladesh, the microfinance revolution has stormed the developing countries today. Although micro credit programmes in Uganda date from 1980s, the proliferation of micro credit scheme or microfinance institutions began after restoration of economic freedom in the 1990s. Today, Uganda has several governmental and non-governmental organizations offering financial services to the poor. Most of these institutions operate localized and targeted programmes, and very few are operating at a national scale, Microfinance institutions in Uganda are largely unregulated and their programmes are not coordinated and accessibility to their services is not uhiversal to the poor. With improvements in the policy environment, the Bank of Uganda (BoU) has been established as a formal association of microfinance institutions with the objective of developing, promoting, coordinating and regulating micro finance activities among member institutions. However, the financial performance of microfinance institutions and their impact on poverty reduction are not adequately documented and known in Uganda, although the increase in micro credit programmes has been remarkable. This thesis attempts to take stock of the microfinance or micro credit revolution in Lubirizi District including assessment of factors of success and failure in the delivery of financial services to the poor and the efficiency and effectiveness of the existing institutional framework on poverty reduction. The study based on the following objectives (1) to determine the demographic characteristics of the respondents (2) to determine the, level of performance of micro finance in the area under study (3) to determine the level of poverty reduction and (4) to find whether there is a significant relationship between the level of micro finance and poverty reduction. The study was based on the “joint liability theory” by Fischer Ghatak (1999). A descriptive survey design was’ employed in the study which descried the different variables in the study. A research sample size of 151 was used selected using a random sampling technique. Chapter four presented the finding of the study revealing that men were composed of the highest number of respondents (58%), respondents aged between 35-51 composed of the highest numbers of respondents (53°k), in terms of marital status married respondents emerged the highest (35%) while in terms of educational qualification certificate holders were the highest number of respondents (37%). The study revealed that MFIs enhanced the capacity of individuals to access financial needs ranked as 1 with a mean range of 3.42. The study also revealed MFI5 reduced poverty through encouraging clients to be self employed. The study further rejected the null hypothesis “there is no significant relationship between MFI5 and Poverty Reduction”; therefore proving that there was a significant relationship between MFI5 and poverty Reduction
Description: A Thesis Presented to the Collage of Higher Degrees and Research (CHDR) Kampala International University Kampala, Uganda in Partial Fulfillment of the Requirements for the Master Degree in Development Studies
Appears in Collections:Masters of Arts Development Studies - Main and Ishaka Campus

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