Contribution of micro credit to poverty reduction in the rural society of Tanzania: the case of Mbinga community bank

No Thumbnail Available
Date
2007
Journal Title
Journal ISSN
Volume Title
Publisher
University of Dar es salaam
Abstract
Establishment of microfinance institutions for the purpose of mobilizing savings and disbursing micro credit to the poor in developing countries has been among the strategies to alleviate poverty. This study is intended to find out whether community banks Tanzania contribute to the growth of income, improving wellbeing and reducing capability poverty of the small scale farmers. In collecting the primary data, questionnaire was administered to 94 randomly selected households of five villages of Mbinga district namely; Mkwaya, Kindimba, Mbangamao, Tukuzi and Ngima. Data analysis was done by SPSS software. Cross tabulation, one way and multiple comparisons ANOVA tests were also done. The empirical evidence of the study indicates that micro credit changed the life of the poor in a positive way. Clients who borrowed at least once from MCB have relatively higher income, investment in productive assets, accessibility to education and food sufficiency. Frequency of borrowing have been found to influence the impact of the loan to poverty reduction because those clients who borrowed more frequently were found to be more well off than the new and the prospective borrowers-
Description
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HG1642.T34M28)
Keywords
Financial institution, Poverty alleviation, Economic conditions
Citation
Mbiwilo, S (2007) Contribution of micro credit to poverty reduction in the rural society of Tanzania: the case of Mbinga community bank.Master dissertation, University of Dar es Salaam, Dar es Salaam.