CONTRIBUTION OF MICROFINANCE SERVICES ON POVERTY REDUCTION IN RWANDA
Authors:
BUMBALI Machiavel, (MBA) & INGABIRE Aline, (MBA)
Abstract:
The study entitled the role of microfinance service in alleviating poverty. It considered these objectives: to identify the accessibility of microfinance services, to assess the contribution of microfinance services in reducing poverty and to find out alternative solutions for challenges about microfinance services in alleviating poverty. Literature reveals that Microfinance provides savings accounts, loans, insurance and money transfers among others to customers that lack access to traditional financial services. The researcher used qualitative and quantitative approaches as the study was descriptive. The total population was 9263 in a period of 2015-2018 with a sample size of 98. Findings related to the objective one revealed that the number of clients who were committed to asking microcredit was increasing by 48.98%; 60.2%,68.37% and 88.76% from 2015 to 2018. The second objective revealed that achievements were starting a small business with 89 respondents which were the main activity proposed by respondents; The third objective revealed various challenges in the process of poverty alleviation. My the conclusion, it is clear from the study area that microfinance contributed to poverty reduction. However, they are still facing some challenges and once they are mitigated with proposed strategies the poverty could be reduced at a high rate.