Providing Microfinance Services in Sub-Saharan Africa
Success or Failure?
DOI:
https://doi.org/10.59051/joaf.v13i1.526Keywords:
success ; failure ; microfinance ; financial inclusionAbstract
Objective: this article aims to analyze the impact of microfinance services on improving the living standards of the beneficiaries in sub-Saharan Africa.
Methodology: to achieve this objective, a multiple regression on data collected on the Global Findex database over the period from 2011 to 2017 was applied.
Results: at the end of the analyses, we find that microfinance has certainly financially included people excluded from the traditional financial system but has not really improved their living conditions. Microfinance institutions in Sub-Saharan Africa place more emphasis on their profitability to the detriment of improving the living conditions of clients. Moreover, the beneficiaries of microfinance are still struggling to live on the income from their micro-projects.
Originality / relevance: this study has shown that microfinance is moving further and further away from its original objectives, microfinance institutions have become a kind of bank that “banks” the poor.
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