Browsing by Author "Abdallah, Ahmed"

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    The role of MFI loans on poverty alleviation in urban areas: a case study of retail traders in Mbezi Luisi, Dar es Salaam
    (University of Dar es Salaam, 2009) Abdallah, Ahmed
    The main concern of this study was to examine the extent to which loans from MFIs have been contributing to poverty alleviation in urban areas. Specifically, the study aimed at finding out the level of access to loans from MFIs among retail traders, and its contribution to poverty alleviation in urban areas, factors hindering effectiveness of MFI loan schemes, as well as getting views on strategies to adopt in order to improve effectiveness of MFI loan schemes. Data was collected through questionnaires, interviews and observation. The study findings showed that all the respondents had secured loans from microfinance institutions, and that the loans had been playing a significant role in poverty alleviation, such as through employment creation and business expansion. However, as the initial amount of capital provided was so small, it posed a limit on the type and size of business enterprise that the borrower would establish. The study findings also showed a number of factors that hinder effectiveness of MFI loan schemes, such as loans provided being too little, poor business environment as well as loan defaults by some group members. The respondents also gave their views on ways of improving the microfinance schemes, including increasing the amount of loans provided to micro-enterprises, providing comprehensive and relevant training to borrowers and providing comprehensive and relevant training to borrowers, among others.This study recommends increasing size of loans provided to micro-enterprises, provision of adequate and relevant training to the borrowers, and the Government to provide conducive environment for both MFI and MSE.