Download or read book The Effect of Subsidies on the Performance and Sustainability of Microfinance Institutions in Sub Saharan Africa written by Menzie S. Dlamini and published by . This book was released on 2012 with total page 164 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Financial Sustainability of Micro Finance Institutions in Sub Saharan Africa written by Hanna Kattilakoski and published by GRIN Verlag. This book was released on 2020-06-23 with total page 6 pages. Available in PDF, EPUB and Kindle. Book excerpt: Presentation slides from the year 2018 in the subject Business economics - Business Management, Corporate Governance, grade: 90, Cologne Business School Köln, language: English, abstract: What factors influence the financial sustainability of microfinance institutions in Sub-Saharan Africa?

Download or read book An Evaluation of the Performance of Microfinance Institutions in Ghana written by Felix Kwame Aveh and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The thesis examines factors that influence sustainability and success of microfinance institutions in Ghana. The topic is important, particularly in poverty stricken Africa, where microfinance institutions play a significant role in supporting governments' initiatives to reduce/alleviate poverty. The developed model is tested using data collected from 14 face-to-face interviews and 114 questionnaires. The data is analysed using different techniques - descriptive statistics, cross-tabulations and regression analysis. The research design and scale of the study are appropriate to both the problem addressed and doctoral level research. A number of factors in the model developed were found to be influencing the sustainability and success of microfinance institutions. A model was proposed that seeks to offer an explanation of sustainability and success of Microfinance Institutions in Ghana. The proposed model identified five categories being: institutional characteristics, agency costs, business strategy, environment/governance and success. Single factor analysis established positive relationships between sustainability and all the five factors but placed more emphasis on three out of the five factors namely; success, business strategy and environment/governance. Multiple factor analysis established no significant differences in the sustainability with respect to the type of MFI, ownership and source of funding. Multiple Regression which allows for the testing of theories or models established a significant relationship between the Operational Self Sufficiency (OSS) and the predictors, especially the drop-out rate of clients and average loans. The Subsidy Dependence Index (SDI) was calculated for the various types of MFIs and the result was a high dependency ratio especially among the FNGOs. Though the dependency is on the decline, it is very slow indicating that most MFIs will depend on subsidies for a very long time to come. Finally it was observed that the relatively high interest rates charged by most of the MFIs tended to defeat the purpose for which the microfinance movement came about. Not only did the study confirm the research model, but it also revealed that most owners did not exhibit a deep sense of involvement and used general knowledge to practice in Ghana. The study concluded that success factors, business strategy, and environment/governance were the most critical of the sustainability factors in Ghana. It is therefore important that managers develop institutional capacities especially in managing the agency problem effectively if they have to be sustainable and successful.

Download or read book The Financial Sustainability of Micro Finance Institutions in Sub Saharan Africa written by Hanna Kattilakoski and published by . This book was released on 2020-05-15 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2018 in the subject Business economics - Investment and Finance, grade: 90.0, Cologne Business School Köln, language: English, abstract: The aim of this study is to understand the factors that drive financial sustainability in microfinance institutions. To accomplish this, several indicators for operational self-sufficiency (OSS) were investigated through correlation and regression analysis. The results indicate that the drivers for operational self-sufficiency include return on assets, number of active borrowers and profit margin. The analysis also showed that in terms of OSS and profitability, there is little difference between for-profit and non-profit organizations. To increase operational self-sufficiency institutions should increase return on asserts, the number of active borrowers and their profit margin. The results support the profit-incentive theory and the financial systems approach. These results indicate that to achieve financial sustainability MFIs should focus on covering operating expenses through earned revenues. Therefore, MFI structure should encourage cost-oriented management. Additionally, findings from this study revealed that there may not be a large tradeoff in efficiency and outreach. Results showed that operationally self-sufficient MFIs actually have a larger outreach than non-self-sufficient organizations. Limitations for this study include that the regression only explains the variables affecting OSS with 26 % certainty and other variables not tested may also be factors

Download or read book Microfinance in Africa written by S. Rajagopalan and published by . This book was released on 2009 with total page 220 pages. Available in PDF, EPUB and Kindle. Book excerpt: Africa is home to some of the poorest and vulnerable populations in the world. The ten poorest countries in the world are in Africa. Sub-Saharan Africa is the region with the highest incidence and greatest depth of poverty in the world. Fewer than one in five adults in Africa has access to the services of a formal or semi-formal financial institution. Microfinance in Africa is growing, though. A broad range of diverse institutions offer financial services to the poor and low-income clients in Africa. These include non-governmental organizations, non-banking financial institutions, cooperatives, credit unions, rural banks, Rotating Savings and Credit Associations (ROSCAs), postal financial institutions and an increasing number of commercial banks. Increasingly, technology is being used to expand microfinance outreach mobile phone banking is one such example. This book provides an overview of the microfinance sector in Africa, reviews the performance and impact of microfinance institutions in the region, and outlines some of the opportunities and challenges that African microfinance has on hand.

Download or read book Microfinance in Developing Countries written by Harninder Sonu Kailley and published by . This book was released on 2009 with total page 138 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the impact particular subsidies have on the sustainability of Microfinance Institutions. Using case studies as the primary methodology, the study reveals subsidised Microfinance Institutions have a weak financial performance, particularly in terms of profitability and self-sufficiency. The relationship is further explored using a secondary survey that examines the leading risks faced by Microfinance Institutions. The survey validates the case study findings citing financial problems as a major risk to the sustainability of Microfinance Institutions. Following the results, the study proposes policy options to reduce the dependency of subsidies while increasing the financial performance of Microfinance Institutions. The policy recommendation is to remove operational subsidies and shift to smart subsidies which entails providing training to the financial institution's staff.

Download or read book Subsidy Donation and Performance of Microfinance Institutions written by Emeka Steve Emengini and published by . This book was released on 2020 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: Subsidies and Donations are veritable tools that are supposed to engender effective performance in Microfinance institutions. On the face value, subsidies seem to be very positive but they can be counterproductive when related to their effects on performance, efficiency and self-sustainability of the Microfinance institutions. This paper therefore focuses on the assessment and review of issues relating to Subsidy/Donation and their effect on Performance of Microfinance Institutions (MFIs) in Nigeria. The methodology adopted is descriptive in nature and secondary source of data were made use of. Our review revealed mix results on the empirical findings of effect of subsidies/donations on performance of Microfinance institutions. This review shows that Subsidies can disincentive workers and managers, thereby creating moral hazard problems (Corruption and Financial impropriety). However, when applied to effect low borrowing costs and Tax incentives/concessions, it affects performance positively. The review also shows that subsidies ought to be used only in the startup phases of the life cycle and to be withdrawn when the Microfinance institution improves. Overall, to achieve the double bottom lines of social and financial sustainability obligations, funding structure in Microfinance should de-emphasise subsidy dependence and encourage market based principles and commercialisation. For effective corporate governance, big Microfinance institutions at the status of Banks and big NGOs should be mandated to disclose their accounts to the public and not just mere annual returns to the Central bank of Nigeria (this may involve quoting them in Nigeria Stock Exchange).

Download or read book Assessing the Sustainability efficiency of Sub saharan Africa s Microfinance Institutions as it Relates to Solving Poverty Stimulating Economic Growth written by Ariel Prochowski and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: My dissertation reviews a plethora of microfinance institutions (MFIs) in countries all over Sub-Saharan Africa to investigate their sustainability. I find my paper to be particularly relevant and crucial as MFIs need to function proficiently to satisfy their dual mandate of aiding the underprivileged and being sustainable. My belief is that MFIs are not reaching their goals of delivering microfinance services (e.g. mediating monies between lenders and borrowers) that leave their clients better off in the long-run.

Download or read book Performance of Microfinance Institutions in Sub Sahara Africa written by Adams Abdulai and published by . This book was released on 2016 with total page 324 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Microfinance Institutions written by R. Mersland and published by Springer. This book was released on 2015-12-11 with total page 329 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research on MFI performance is still in its infancy. MFIs are hybrid organizations with dual objectives. Performance studies in microfinance are therefore less straightforward compared to performance studies in traditional banking research. This book contains new MFI performance research by top scholars from across the globe.

Download or read book Role of Governance in Microfinance Sustainability written by Md Nazim Uddin and published by Springer Nature. This book was released on with total page 326 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Access to Microfinance and Financial Training for Innovative Urban Sustainability written by Musau Mutisya and published by African Books Collective. This book was released on 2014-10-06 with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Kenyan population is highly concentrated in urban centres, leading to increased social, economic and environmental strains, with a significant percentage of urban dwellers living in sprawling slums. Urban development is increasingly a major focus, especially in the fight against urban sustainability problems. There is little practical orientation in the academic literature for the growing gap between the rich and poor. Current literature is enormously concerned with resource use and environmental pressures, paying scant attention to the nexus between urban sustainability and empowerment of the urban poor. This book initiates debates on the segment of urban population often referred to as the bottom of the pyramid (BOP), by analysing the microfinance innovation following evaluation of the impacts of access to microfinance and financial training and the implications to urban sustainability in Kenya. The main conclusion reached is that microfinance has an instrumental role to play in promoting sustainable urban development as it supports social welfare improvement and increases the livelihood of participants, business development and urban sustainability to a certain extent, thereby empowering the urban poor in contributing to poverty alleviation.

Download or read book Microfinance and Public Policy written by Bernd Balkenhol and published by International Labor Office. This book was released on 2007 with total page 296 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book states to aid agencies and governments to consider efficiency as a robust and reliable criterion to guide their decisions on whether continuing or discounting support from microfinance institutions (MFIS).

Download or read book Benchmarking the Financial Performance Growth and Outreach of Greenfield Microfinance Institutions in Sub Saharan Africa written by and published by . This book was released on 2014 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: "In recent years there has been a rapid increase in the presence and growth of greenfield microfinance institutions in Sub-Saharan Africa. This paper uses regressions to benchmark those African greenfields relative to other microfinance providers and finds that greenfields grew faster in terms of deposits and lending, improved their profitability to levels comparable to the top microfinance institutions, and substantially increased their lending to women. The effects were especially strong for greenfields that followed a consultant-led model to establish a deep retail banking presence spanning multiple countries, including the creation of extensive branch networks. Although their loan sizes are somewhat larger than those of most African microfinance institutions, indicating less outreach to the poorest market segments, greenfields have achieved rapid gains in financial inclusion on a broad scale"--Abstract.

Download or read book Assessing the performance of microfinance institutions in Sub Saharan Africa written by Mary Catherine Hoyt and published by . This book was released on 2012 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Financial Sustainability Liquidity and Outreach of Deposit taking Microfinance Institutions written by Zibusiso Moyo and published by . This book was released on 2020 with total page 219 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Benchmarking the Financial Performance Growth and Outreach of Greenfield Microfinance Institutions in Sub Saharan Africa written by Robert Cull and published by . This book was released on 2017 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years there has been a rapid increase in the presence and growth of greenfield microfinance institutions in Sub-Saharan Africa. This paper uses regressions to benchmark those African greenfields relative to other microfinance providers and finds that greenfields grew faster in terms of deposits and lending, improved their profitability to levels comparable to the top microfinance institutions, and substantially increased their lending to women. The effects were especially strong for greenfields that followed a consultant-led model to establish a deep retail banking presence spanning multiple countries, including the creation of extensive branch networks. Although their loan sizes are somewhat larger than those of most African microfinance institutions, indicating less outreach to the poorest market segments, greenfields have achieved rapid gains in financial inclusion on a broad scale.