Role of Microfinance Institutions in Mobilizing Savings for Economic Development Mara-Tanzania: A Case of Serengeti District 2000-2006

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Kampala International University, bachelors degree of Arts in Economics
More than subsidies poor need access to credit. Absence of formal employment makes them none "bankable". This forces them to borrow from local money lenders at exorbitant interest rates. Many innovative institution mechanisms have been developed in Tanzania to enhance credit to poor even in the absence of formal mortgage. The study examined the role of microfinance institutions in mobilizing savings for economic development, Serengeti District,Tanzania.The success and failure of various microfinance institutions in Tanzania and Serengeti in particular have been evaluated, It examined other factors that influence microfinance institutions and establish appropriate measures to overcome the problem hindering microfinance institutions in mobilizing savings. Research questions included: To what extent do people have access to lending and borrowing? What is the rate of the loan repayment? Do microfinance institutions fight or deepen poverty levels? What are the strategies used by microfinance institutions in mobilizing savings? What are the factors influencing financial institution ability to mobilize savings? What are the policies measures undertaken to overcome the problem of financial institutions in mobilizing savings? Research methodology was a descriptive case Questionnaires, interviews and observation were used to collect data and both qualitative and quantitative techniques were used. Purposive sampling and stratified sampling was used to select the sample and its size and SPSS 13.0 computer package was used to analyze data. The findings of the study show that there was a significant relationship between microfinance institutions in mobilizing savings and economic development. Therefore implies that independent variables play a vital role in explaining the variation in output of microfinance institutions. The study therefore recommends: government should invest immensely in microfinance institution for enabling bright performance in achieving economic growth, provision of more workshops to both entrepreneurs and administrators persistently.
A Thesis Submitted to the Faculty of Social Sciences in My Partial Fulfillment for the Requirements of the Award of the Bachelor Degree of Arts in Economics of Kampala International University
Microfinance Institutions, Mobilizing Savings, Economic Development, Mara-Tanzania