Microfinance Institutions (MFIs) in sub-Saharan Africa (SSA) and the developing world have over the years attracted and received billions of US dollars (valued at over US$4 billion annually worldwide) in subsidies and concessionary funds. These subsidies are used to capitalize, promote growth, and help improve efficiency, operations and performance of newly established MFIs. At face value these interventions seem positive, yet studies have shown that they can be counterproductive in terms of their effect on the performance, efficiency and self-sustainability of the MFIs. This research addresses this issue by identifying four determinants of MFI’s performance and analysing the effect that subsidies have on them. A quantitative approach was used in the analysis in which the financial data of 92 MFIs were estimated using panel data estimation. The method of variable selection was based on the procedure used by Nawaz (2010). This method of determining the relationship between selected performance and sustainability indicators and subsidy was modelled on the Subsidy Dependant Index (SDI) method of analysis developed by Yaron (1992a) and the Return on Asset (ROA), Operational Self-Sufficiency (OSS) and Financial Self-Sufficiency (FSS) methods of analysis developed by the SEEP Network (2005). The summary results of the analysis showed that the majority of MFIs (90.22%) were not sustainable nor were they found to be profitable. However, the results show that all the institutions were operationally self-sufficient and that, on average, MFIs in SSA charged higher interest rates than MFIs in other parts of the world. The average OSS was 136.01% showing that MFIs are operationally self-sufficient. However, the average FSS value was 74.32% reflecting that the MFIs are not able to raise enough revenue to cover their capital and indirect costs which would ultimately result in them running out of equity funds. The inclusion of subsidies in the sustainability regressions resulted in a decline in the ability of the MFIs to attain operational and financial self-sufficiency, thus showing the negative effect subsidies have on the sustainability of MFIs. Inflation and interest rates charged on loans also had a negative effect on sustainability as they resulted in an increase in costs and a decline in the number of low income clients. MFIs located in wealthier countries were found to be more efficient because of the lower costs associated with having wealthier clients who have larger loan sizes. MFIs in lower income countries have to overcome limitations of weak infrastructures, low population densities and rural markets which increase operating costs. Older institutions were found to more likely be sustainable than new and young MFIs as expected because of their improved efficiency and productivity and also because they have more experience and are therefore better equipped to overcome challenges. However, by adding subsidy in the analysis the results show that the level of efficiency of MFIs is reduced. The results also show that with increased maturity MFIs are found to be more productive, however, when subsidies are included in the finances the levels of productivity will decline as costs increase. NBFIs are the most suitable business model to practice in MFIs in Africa according to the findings which reflect that NBFIs are more profitable and efficient than any of the other business models in the sample. However, cooperatives were found to be the most productive business model as they have a stronger borrower to staff ratio than the other institutional types. Furthermore, cooperatives and NBFIs tend to have clients who are better off and therefore can afford to take larger sized loans, unlike clients of NGOs who are poor who struggle to have a stable income. Copyright / Dissertation (MSc(Agric))--University of Pretoria, 2012. / Agricultural Economics, Extension and Rural Development / unrestricted

An insufficient financial market means that poor individuals cannot access financial capital, making it difficult for them to generate a stable income. Formal banks see these individuals as unreliable customers because of their financial background and see a risk that these potential customers will not repay their loans, which would put the bank at risk. Banks usually use the borrower’s assets as collateral for their loans. Unfortunately, not many of these poor people have any assets. Microloans can solve these problems by opening up the opportunity for financial capital that enables poor people to make the investments needed to create or develop some form of production and thus increase employment. This research was carried out to analyze if the collected variables can determine the repayment ability of those who got a microloan from the Amhara Credit and Savings institution. Since the borrowers received their loans through two different processes, this study divided the data into two groups. Group 1 received their microloan based on a personality test and the individuals in group 2 received their microloan based on group lending. This division is done in order to be able to eliminate that the lending process itself may have affected the repayment ability. This study is based on random sample data from the Amhara Credit and Savings institution. Regression analyses were performed using the STATA-15 software. The results are not entirely consistent with previous studies because some variables did not get the expected outcome linked similar to previous studies. Some of the variables in this study appear to have an effect on the repayment ability, but not all. Thus, the conclusion is that the results are insufficient and further research needs to be made to reject or confirm the influence of the socio-economic factors and structure of the microloan on the repayment ability for Ethiopian borrowers. / En otillräcklig finansmarknad innebär att fattiga individer inte kan få tillgång till finansiellt kapital vilket gör det svårt för dem att generera en stabil inkomst. Formella banker ser dessa individer som opålitliga kunder på grund av deras ekonomiska bakgrund och ser en risk med att dessa potentiella kunder inte kommer att återbetala sina lån, vilket skulle sätta banken i risk. Banker använder vanligtvis låntagarens tillgångar som säkerhet för sina lån. Tyvärr så har inte många av dessa fattiga människor några tillgångar. Mikrolån kan lösa dessa problem genom att öppna upp möjligheten för finansiellt kapital som gör det möjligt för fattiga människor att göra de investeringar som behövs för att skapa eller utveckla någon form av produktion och därmed öka sysselsättningen. Denna forskning genomfördes för att analysera om våra insamlade variabler kan förklara återbetalningsförmågan hos de som fick ett mikrolån från Amhara Credit and Savings Institution. Eftersom låntagarna fick lån genom två olika processer delade vi upp dem i grupp ett, som fick sitt mikrolån genom ett personlighetstest och grupp två, som fick sitt mikrolån via en grupp med andra individer. Detta för att kunna eliminera att själva processen till hur de har fått lånet kan ha påverkat återbetalningsförmågan. Studien är baserad på slumpmässiga provdata från Amhara Credit and Savings Institution. Regressionsanalyser utfördes med användning av Stata 15-programvaran. Resultaten är inte helt i överensstämmelse med tidigare studier, i och med att vissa variabler inte har det förväntade utfallet kopplat till tidigare studier. Några av variablerna i denna studie visar sig ha en påverkan på återbetalningsförmågan, men inte alla. Således är vår slutsats att resultaten är otillräckliga och behöver ytterligare undersökning för att kunna avvisa eller bekräfta denna uppsats variablers påverkan på återbetalningsförmågan.

Poor people benefit from microfinance and positively improve their poverty and socio-economic conditions. Microfinance support serves as development tool to redress the exclusion of the poor from the development process and outcomes in the mainstream intervention frameworks. As developing countries and poverty context are diverse and contextual, comprehensive knowledge about and empirical evidence on the impact of microfinance is scant. Specifically, the impact of microfinance services on the development of micro and small enterprises (MSEs) owned by women is scant. The findings of available studies and policy practice reports on microfinance in Ethiopia are not holistic in terms of a theoretical lens and methodological pluralism. Available studies do not consider the impact of microfinance and non-financial services on women-owned MSEs at household, individual and enterprise levels thereby reducing the poverty context and holistic empowerment at these levels. This study used multiple theoretical and conceptual frameworks: Hulme’s (2000, p. 79 - 81) microfinance impact assessment tool, debates on survivalist and growth-orientation perspectives of MSEs (Harvie, 2003, p. 27; Snodgrass & Biggs, 1996, p. 43; Hallberg, 2001, p. 19; Nichter & Goldmark, 2005, p. 67), women empowerment continuum model of interpretation (Filmon, 2009, p. 87) and policy practice at the epicenter of governance and policy decision-making (Addis Ababa, Ethiopia’s capital). The assessment considered three elements of microfinance impact assessment, generating primary evidence from 120 micro and small business owners (women entrepreneurs) whose firms stayed two years and above in the market and as clients of selected microfinance institutions. The clients considered were those who accessed at least two loan cycles and above. The respondents were randomly selected from three randomly selected microfinance institutions and a survey questionnaire was administered. The data sets were analysed using multiple tests (non-parametric statistical tests such as Pearson Correlation, Paired-Sample, Chi-Square, Wilcoxon Rank and McNemar tests) as well as parametric tests were conducted using logit econometric model. These tests were conducted to determine statistical difference of microfinance services after program intervention and the contribution of total loans taken on expenditure and businesses investment. The results indicated both developmental or survivalist firms. The result also indicated the empowerment of the women (MSEs owners). A significant number of women entrepreneurs owning MSEs improved their living house, cash savings, household income, child education, household health, household food and diet, business investment, and decision making status in their households. In terms of policy support, the study identified that there were specific affirmative interventions (as stipulated in the policy documents) to support women entrepreneurs owning MSEs in terms of targeted financial service, provision of working and selling premises, designing and implementing training and skill development programs, market networking and tax support on their products and sales. The study recommends that different institutions that work on women empowerment and women associations have to design women focused affirmative policy and strategy interventions to scale-up the positive results (growth-orientation of the MSEs) and address the bottlenecks that limit women entrepreneurs who own MSEs from accessing services that can transform the survivalist MSEs to profitable and empowering businesses for women. The recommendations are proposed to link women empowerment with working policy support. / Development Studies / D. Ph. (Development Studies)

A large proportion of the world’s population has neither access to any formal financial services nor access to clean energy. This poorest socio-­‐economic group is called the bottom of the pyramid (BoP). It is recognized that microfinance services offered through microfinance institutions (MFIs) can serve this group and offer them opportunities to end financial poverty. To resolve energy poverty, efficient and renewable energy technologies on micro-­‐scale can be a solution. To reduce greenhouse gas emissions, carbon-­‐offsetting measures can be taken. A microenergy project is a combined solution, where MFIs are assisted to give clean energy loans to the BoP. If microfinance is the right channel to provide energy to the bottom of the pyramid (BoP), how are the countries chosen? Which projects fits in? What are the criteria to choose an MFI? What are the conditions needed in relation to the energy sector? This research proposes the Microenergy Atlas as a tool for project implementers with a systematized methodology that addresses these questions and may help decision-­‐making for project planning. Throughout a five-­‐phase process, the Microenergy Atlas screens the listed projects by myclimate according to the MEI’s general objectives. Then, the tool screens microfinance institutions worldwide to select top performers according to MEI’s criteria, and analyses the energy sector of the countries with indicators related to the targeted client. Next, the Atlas places the projects based on specific indicators and finally gives a list of countries with the most favorable conditions to implement a microenergy project along with the potential microfinance institutions and projects. The results shows thirty-­‐seven countries ranked from most favorable to least favorable ones, counting the number of potential institutions and projects that can be done in each country. These results are then compared to actual cases where MicroEnergy International already has had successful experiences in the top-­‐ranked countries. Therefore, this tool can be used as a firsthand guide when choosing a country to have a new microenergy project. / <p>This report concludes the European Joint Master Program of Management and Engineering of Environment and Energy (ME3). It has also been submitted to the coordinating university, Ecole des Mines de Nantes.</p>

Microfinance is a relatively young and somewhat ambiguous concept. The phenomenon has, however, proven to contribute to making the lives better for many poor people, thus the interest for the industry has grown substantially. The increased attention has stimulated the movement towards more financially sustainable organizations. Along with this transformation, concerns regarding how it affects the poor have been raised. This study aims to map the key characteristics of financially sustainable microfinance institutions (MFIs) and what features that separates them from their non-sustainable counterparts. By analyzing data from 1109 MFIs, some significant differences between sustainable and non-sustainable organizations have been found. The study shows that for-profit MFIs are self-sufficient to a greater extent than the non-sufficient ones, which might be caused by the pressure to deliver value to shareholders. Furthermore, there are indications that self-sufficient MFIs are more efficient, which can be assumed to be caused by technological advantages, or different lending methods. The findings on outreach are somewhat contradictory; sustainable MFIs are reaching more clients on average, which discards a mission drift. On the other hand, self-sufficient MFIs have larger average loan sizes and less female borrowers, two indications that a mission drift actual exists. Self-sufficient MFIs have also proven to have lower loan loss rates and lower yields on loan portfolio. Positive findings, as they indicate that the MFIs have sound loan portfolios and that they have managed to become self-sustainable not by exploiting the poor, but by reducing costs and increasing efficiency. Financial sustainability can therefore be assumed to be achieved without forsaking the poor, if the social aims of the organizations are consistent with the financial objectives.

The village-based microfinance approach Village Savings and Loan Associations (VSLAs) has been implemented in developing countries for three decades, and is found to be an effective tool in alleviating poverty and facilitating access to financial services in rural areas.  This study, done in collaboration with Vi Agroforestry, aimed to investigate the impact of VSLA activities on female empowerment in Rwanda, and more specifically, how women's access to and control over assets have been affected by VSLA participation. The term 'female empowerment' refers to the process by which women gain control and power over their own life situations and their ability to make strategic choices, that is, the capacity to turn choices into desired actions and outcomes.  A qualitative methodology has been used, where the main data collection consisted of six individual interviews with VSLA staff responsible for implementing, monitoring and evaluating VSLA groups in six different districts, and two focus group interviews with female VSLA participants in two different districts, carried out during April and May 2021.  The findings show that VSLA participation significantly accelerates the process of female empowerment in both household and community domains for women in Rwanda and that VSLA is an efficient first step in moving from a marginalised position in the society. However, women are still in many cases restricted from claiming all potential benefits from VSLA participation by structures that dictate normative gender roles and power structures. The findings highlight the importance of continued gender-related and financial training in order to further increase female access to and control over resources through VSLAs.

Existe un interés reciente en el estudio de la eficiencia en las instituciones de microfinanzas, dado que está relacionado con indicadores de rentabilidad, sostenibilidad y un mayor alcance para abastecer a más personas. Asimismo, los costos de eficiencia podrían ser una limitación para el objetivo social que persiguen. Sin embargo, el estudio de los determinantes de los costos de eficiencia y la posible compensación con el alcance del CMAC del Perú aún no se ha explorado. Por esta razón, este trabajo de investigación busca aproximar esta relación agregando variables específicas del CMAC y variables macroeconómicas a través de un modelo interno de efectos fijos. La estimación identificó la no existencia de trade-off entre el alcance y el costo de eficiencia. Además, la tasa de crecimiento de los deudores, el préstamo promedio por persona, el índice de autosuficiencia, los activos totales, la edad, la tasa de crecimiento del PBI e inflación serían los determinantes más relevantes de la eficiencia de costos para el CMAC del Perú. / There is a recent interest in the study of efficiency on microfinance institutions, given that it is related to indicators of profitability, sustainability, and greater scope to supply more people. Likewise, efficiency costs could be a limitation for the social objective they pursue. However, the study of the determinants of efficiency costs and the possible trade-off with the outreach of the CMAC of Peru has not yet been explored. For this reason, this research work seeks to approximate this relationship by adding specific variables of the CMAC and macroeconomic variables through a Within the model of fixed effects. The estimate identified the non-existence of trade-off between outreach and cost-efficiency. In addition, the growth rate of debtors, the average loan per person, the self-sufficiency index, total assets, age, the growth rate of GDP, and inflation would be the most relevant determinants of cost efficiency for the CMAC of Peru. / Trabajo de investigación

No description available.

El texto completo de este trabajo no está disponible en el Repositorio Académico UPC por restricciones de la casa editorial donde ha sido publicado. / Microfinance has undergone a great growth in the last years, bringing consequently the significant increase of the data of the transactions and daily operations, manual processes of cleaning, complexity in IT projects and, in comparison with the traditional bank, a less amount of resources. For this reason, the model must allow the master data to have maintenance processes that reduce manual cleaning activities and contribute to the implementation of technology projects in an agile manner. On the other hand, the research seeks to combine a basic pillar such as Master Data Management (MDM) for the analysis of information with the lean approach, already used in the industry for the operational cost and additionally an evaluation measure prior to this process obtaining the state of the capabilities in the organization. In this way, the result will be that the organization can be previously evaluated and quickly identify which points should be improved to achieve the implementation of MDM initiatives. Likewise, within the research it is concluded that the Peruvian microfinance sector is prepared for the implementation of master data management with a 'proactive' maturity level of 3.46 points.

The core issue of this thesis deals with the global issue of poverty and gender inequality inBangladesh. The research problem deals with the concept of empowerment in relation tomicrofinance loans as poverty alleviation strategies. The most developed theoreticalframework of empowerment in the microfinance field, developed by Naila Kabeer is utilised.This thesis analysed through a qualitative content method if Kabeer´s framework can beoperationalized to understand three of the most known MF-NGOs approach to women&amp;#39;sempowerment in Bangladesh. The findings were that the most common concepts to describeempowerment were linked to sustainability and building capacity. It was also found that thepractical approach was mostly found on a community level. The research further concludesthat it raises questions to what extent development work can address individuality. Though,concluding arguments hold that measuring and identifying when empowerment is achieved ishowever heavily evident to further fulfil microfinance promise of empowerment for womenin poverty.