MICROFINANCE INSTITUTIONS AND POVERTY ALLEVIATION A …

MICROFINANCE INSTITUTIONS AND POVERTY ALLEVIATION

A CASE STUDY: SUDAN MICROFINANCE YEI COUNTY

BY

NAFISA DINAH OLIVER

BBA/17599/71/DU

A RESEARCH REPORT SUBMITTED TO THE SCHOOL OF BUSINESS

AND MANAGEMENT IN PARTIAL FULFILMENT OF THE A WARD

OF A BACHELORS DEGREE IN BUSINESS ADMINISTRATTON

OF KAMPALA INTERNATIONAL UNIVERSITY

JUNE2010

DECLARATION

I declare that this report is a product of my own independent research and investigation and has

not been submitted to any institution for any award before. where it is indebted to the work of

::::::~ acknowledge~~nt h~sz ~;de~ ..... . ..... .... .

NAFISA DINAH OLIVER

Date: ST~~~~;. } P. J .1.~o.}. Q ...... .. .

DATE:

APPROVAL

MR. MALINGA RAMADHAN

SUPERVISOR

02/6}/~10 ···· ····· ········ ···· ···· ···· ·······

ii

DEDICATION

I dedicate this book in memory of my late parents, Oliver Lowela. Kipara who loved the English

language and my Mum Alice Oliver who could not ripe from what she had sown. I miss them

dearly.

iii

ACKNOWLEDGEMENT

First and foremost, I want to thank the almighty God for enabling me to have completed my

course successfully.

I would also want to thank the family of his Excellency Stephen Lemi for their great support

before and after the University

My great thanks go to my uncle Issa Aligo for his support and great role as a guardian

I also want to thank my brothers and sisters for their financial support and encouragement among

which are Margaret, Emmanuel, Amos, Harriet, Betty, David and Andrew.

Special thanks go to my Supervisor Mr. Malinga Ramadhan who worked tirelessly to make sure

I produce this work

I can not forget my friends. Zendia Susan, Yeno Susan. Nafsi Namirembe. Nantume Amina.

Ashaghai Adam. Santino Tekijok. Mambu Martin, Mwalo Stephen among others

Thanks also go to the management of Sudan Microfinance and the entire Banking and finance

class for their support for me in the preparation of this book.

May God bless you all.

iv

USAID:

AEFP

SUMI

IDP:

MFis:

SACCOS

MDI

BOU

LIST OF ACRONYMS

United States Agency for International Development

Agricultural Enterprise Finance program

Sudan Microfinance Institution

Internally Displaced Persons

Microfinance Institutions

Savings and Credit Cooperative Organizations

Micro Deposit taking Institutions.

Bank of Uganda

V

TABLE OF CONTENTS CONTENT PAGE No.

DECLARATION ............................................................................................................................. i

APPROVAL ................................................................................................................................... ii

DEDICATION ............................................................................................................................... iii

ACKNOWLEDGEMENT ............................................................................................................. iv

LIST OF ACRONYMS ................................................................................................................... v

TABLE OF CONTENTS .............................................................................................................. vi

LIST OF TABLES ........................................................................................................................... x

LIST OF FIGURES ....................................................................................................................... xi

ABSTRACT ................................................................................................................................. xii

CHAPTER ONE ............................................................................................................................ 1

INTRODUCTION ......................................................................................................................... 1

1.1 Background of the Study ........................................................................................................... I

1.2 Statement of the Problem ........................................................................................................... 2

1.3 The Purpose of the Study ........................................................................................................... 2

1.4 Specific Objectives of the Study ............................................................................................... .3

1.5 Research Questions ................................................................................................................... .3

1.6 Significance of the Study ........................................................................................................... 3

1.7 Scope of the Study .................................................................................................................... .3

1.8. Conceptual frame work ............................................................................................................. 4

vi

CHAPTER TWO ................................................................................................ ........................... 5

LITERATURE REVIEW ............................................................................................................. 5

2.0 Introduction ........................................................................................................................... 5

2.1. Overview ofMicrofinance .................................................................................................... 5

2.1.4 Financial Advice ............................................................................................................... 7

Action Aid (1992) Financial Advise and support implies the burgeoning choice of financial products on the market. .................................................................................................................... 7

2.3.1 Operations of Sudan microfinance institution (SUMI) .................................................. .11

2.4 The impact of Micro-finance institutions in poverty alleviation ........................................ 12

2.5. Limitations of micro finance institutions in pove1iy alleviation ....................................... .12

CHAPTER THREE ..................................................................................................................... 14

METHODOLOGY ...................................................................................................................... 14

3.0 Introduction ......................................................................................................................... 14

3 .1 Research Design ................................................................................................................. 14

3.2 Sample Framework. ................................................... : ........................................................ 14

3.2.1 Sample Size ..................................................................................................................... 14

3.2.2 Sampling Techniques ...................................................................................................... 14

3.2.3 Sampling Procedures ....................................................................................................... 15

3.3 Area of Study ...................................................................................................................... 15

3.4 Data Collection ................................................................................................................... 16

3 .4 .4 Source of Data ................................................................................................................. 16

3.5 Data Analysis ................................................. : .................................................................... 17

3.6 Assumptions and Limitations ............................................................................................. 17

3. 7 Ethical Consideration .......................................................................................................... 18

vii

CHAPTER FOUR ....................................................................................................................... 19

PRESENTATION, INTERPRETATION AND ANALYSIS OF FINDINGS ....................... 19

4.0 Introduction ......................................................................................................................... 19

1.5 Research Questions ............................................................................................................. 19

1.5 Research Questions ............................................................................................................. 19

4.1 Gender of Respondents ....................................................................................................... 20

4.2 Qualifications of the Respondents ...................................................................................... 21

4.3. The Age of the respondents ................................................................................................ 22

4.4: The position of the respondent ...................... : ................................................................... .23

4.5. To investigate the impact of micro finance institutions on poverty alleviation in Yei county ............................................................................................................................................ 23

Response on how SUMI operations benefited the respondents ..................................................... 24

4.6. The extent that SUMI has helped poverty alleviation in Yei ............................................. 24

4.8. The possible ways that SUMI can implement in extending its services to its clients ........ 27

4.9. To determine the limitations ofmicrofinance institutions in poverty alleviations in Yei county ............................................................................................................................................ 28

The Limitations of SUMI In Extending Its Services ..................................................................... 28

4.10. The solutions to the above limitations ............................................................................ 29

4. 12. The challenges faced in acquiring the services of SUMI.. ............................................. .31

CHAPTER FIVE ......................................................................................................................... 33

DISCUSSION & SUMMARY, CONCLUSION, RECOMMENDATIONS AND ................. 33

SUGGESTIONS ........................................................................................................................... 33

5.0 Introduction ........................................................................................................................ .33

5.1 Discussion .......................................................................................................................... .33

5.1.1 The Impact ofMicrofinance institutions on poverty alleviation in Yei County ............. 33

viii

5.1.2 The strategies used by microfinance Institution in Poverty alleviation in Yei County .. 34

5.1.3 The limitation ofMicrofinance Institution on Poverty Alleviation ................................ 36

5 .2 Conclusion ......................................................................................................................... .3 7

5.3 Recommendation ................................................................................................................ 43

5.4 Further Areas of Research ................................................................................................. .45

REFERENCES .............................................................................................................................. 46

APPENDIX A ................................................................................................................................ 48

QUESTIONNAIRES ..................................................................................................................... 48

RESEARCH QUESTION ONE (2000) ......................................................................................... 49

RESEARCH QUESTION TWO (3000) ....................................................................................... .49

RESEARCH QUESTION THREE (4000) ............... : ................................................................... .49

APPENDIX B ................................................................................................................................ 50

THE TIME FRAME OF THE STUDY ......................................................................................... 50

BUDGET FOR THE STUDY ....................................................................................................... 50

APPENDIX C ................................................................................................................................ 51

MAP OF SUDAN SHOWIN LOCATION OF YEI.. .................................................................... 51

ix

LIST OF TABLES

TABLE NO. PAGE NO.

Table 3.1 ..................................................................................................... 15

Table 4.1 ...................................................................................................... 20

Table 4.2 .................................................................................................... 21

Table 4.3 .................................................................................................... 22

Table 4.4 .................................................................................................... 24

Table 4.5 .................................................................................................... 25

Table 4.6 .................................................................................................... 26

Table4.7 ........................................................... , ........................................ 27

Table 4.8 .................................................................................................... 28

Table 4.9 .................................................................................................... 30

Table 4.1.0 .................................................................................................. 31

Table 4.1.1 .................................................................................................. 32

Table 4.1.2 .................................................................................................. 33

X

LIST OF FIGURES

Figure 1.8: Sample frame work ........................ : ............................................ 4

Figure 4.1: Showing gender of Respondents ...................................................... 20

Figure 4.2 Showing Qualification of Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Figure 4.3 Showing Age of Respondents ......................................................... 23

Figure 4.4 Showing Position of Respondents . . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . 24

Figure 4.5 Showing Response on how SUMI operations benefited the respondents . . . . . . 25

Figure 4.6 Showing the extent that SUMI has helped poverty alleviation in Yei . . . . . . . . . 26

Figure 4.7 Showing the ways in which SUMI extends its services to its clients . . . . . . . . ... 28

Figure 4.8 Showing the possible ways that SUMI can implement in extending its services To its clients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Figure 4.9 Showing the limitations of SUMI in extending it' services . . . . . . . . . . . . . . . . . . . . . 30

Figure 4.1.0 Showing solutions to the above limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 32

Figure 4.1.1 Showing solutions to the above limitations . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 33

Figure 4.1.2 Showing the challenges faced in acquiring the services of SUMI . . . . . . . . . .. 34

xi

ABSTRACT

The study was conducted to investigate the Micro finance institution and poverty alleviation

reduction case study Sudan Microfinance Yei County. The study intended to investigate the

Micro finance institution and poverty alleviation reduction case study Sudan Microfinance Yei

County. The independent variable was microfinance operations, while the dependent variable

poverty alleviation operations. The study sought to investigate the impact of microfinance

institution on poverty alleviation, since there was no significant documentation on the impact of

microfinance on poverty alleviation.

The study findings revealed that 67% of the respondents agree or support that SUMI has helped

in the poverty alleviation in Y ei County. Furthermore, the findings also revealed that 67% of the

respondents agreed that SUMI observed that ensuring loan payment strategy was the best way

and strategy that can be implemented in extending its services to its clients.

The study used survey and data collection process was done by using instruments such as

administered questionnaire and interviewing for primary data, on sample size of 120 and target

population of 350 and extensive library research, which data was analyzed and presented in form

of tables, percentage distribution and frequency distribution. Using Microsoft excel software,

therefore, the study found out that, microfinance institutions have benefited the people in Yei

County.

It was therefore concluded that the microfinance institutions seem to have impacted on the

pove1iy alleviation in Y ei County thus causing improved performance, efficiency and

effectiveness in the economy in general in terms of increased investments and improved

productivity job creation.

Thus it was recommended that government and the management of Sudan Micro Finance Yei

County need to improve its programs to improve on the pove1iy levels in the county, in addition

an improvement in the judicial system is necessary so that the legal system is quicker and

supports the rights of borrowers and lenders. Research also recommends on the improvement on

the transparency of cash management so as to solve the problems of poverty in the county. There

fore more research has been conducted to test the validity of this option as it could be a tool to

solve the problems associated with poverty alleviation by Microfinance institutions in the

country

xii

I.I Background of the Study

CHAPTER.ONE

INTRODUCTION

According to Adera (1988), Micro Finance Institutions is a financial institution that canies the

function of savings and credits and it is regulated under the financial institution Act and it's

controlled by the central bank of Sudan. Microfinance is a provision of a broad range of client's

responsive financial services to poor people through a wide variety of institutions (Abugre, 1994)

Microfinance institutions is a financial institution that carries the function of savings and credits

and it's regulated under the financial institution Act, and its controlled by the central Bank of the

country. Dale & Meyer, (1989). Poverty alleviation is any process which seeks to reduce the

level of poverty in a community or amongst a group of people or countries, it may be aimed at

economic or non economic reasons.

Sudan microfinance institution (SUMI) is the pioneer microfinance institution in southern Sudan

operating since the year 2003. It was established under the Sudan Agricultural Enterprise

Finance Program (AEFP) a United States Agency for International Development (USAID) five

year (Oct 2002-Sept 2007) project aimed at improving access to financial services to Southern

Sudanese who are eager to rebuild their lives after debilitating effects of civil war. It is registered

as a company limited by guarantee and has a nine- member board of directors· team (Zeithaml,

1996).

SUMI's business model is designed to deliver low cost but volume financial products to

disenfranchised member of society or the marginalized people of Southern Sudan for economic

empowerment, employment/wealth creation and poverty alleviation. These include the returnees

from exile and the Internally Displaced People (IDPs) whose numbers have increased daily while

awaiting relocation

to their ancestral homes. Majority are engaged in small income generating activities while others

are still struggling to start any to sustain their lives. The organization has made a deliberate

attempt to reach out to them through its branch network and the outreach centers where services

are taken to the people. (Ebert, 2000).

1

SUMI now has operations in Yei, Yambio, Maridi, Rumbek, Juba and recently Wau in addition

to 13 outreach centers and serving over 9,000 clients. This brings to four out of the (10) ten

southern states covered by SUMI. (Markland, 1995).

SUMI in Yei county is the first microfinance institution established in 2003 in 2003 followed by

other 5 (five branches in southern Sudan. It is next to Yei in Southern Sudan, it currently has a

number of six (6) outreach centers as at December 2009, with a total client of 3,445.

According to Adongo and Deen ( 2006), poverty alleviation is any process that reduces income

fluctuation between poor and no poor scenarios. This is different from pove1iy reduction, which

fluctuation between poor and no poor scenarios. This is different from over reduction, which

aims to permanently move an individual or household fro a poor to a non poor scenario.

Otero, christen and Rhyne (1995) argued that commercialization of microfinance may have a

positive impact, since it may lead to a strong increase in funds which is needed to guarantee a

large scale out reach to the poor on a long term basis. The increase in funds implies an increase

in the scale of operations, that are reached by micro finance institutions.

Several authors argue that there is trade-off between depth of outreach an achieving financial

sustainability since unit transaction costs for smaller loans (loans for the poor) are high as

compared to unit costs of large loans (Hulme and Moseley, 1996, Canning 1999; Paxton and

Cuevas, 2002).

As result of the massive war in Sudan, a good number of people were left poor due to the

destruction of their commercial and house hold properties. Microfinance institutions hence

became the basis of theft activities therefore, the researcher tends to investigate the impact of

micro finance institutions in poverty alleviation focusing at Y ei County in Southern Sudan.'

1.2 Statement of the Problem

Despite the fact that the microfinance institution had served the Y ei county population in order to

alleviate poverty, there was no research documentation that showed the impact of these

microfinance institutions' service on poverty alleviation. Thus, the research intended to

investigate the extent to which the microfinance services impacted on the poverty alleviation to

the population ofYei County.

1.3 The Purpose of the Study.

The purpose of this study was to investigate the impact of micro finance institutions in poverty

alleviations with focus in Y ei County in Southern Sudan.

2

1.4 Specific Objectives of the Study.

The objectives of this study were,

a) To investigate the impact of micro finance institutions on poverty alleviation in Yei county.

b) To find out the strategies used by micro finance institutions in poverty alleviation in Yei

County.

c) To determine the limitations of micro finance institutions in poverty alleviations 111 Yei

county.

1.5 Research Questions.

a. What is the impact of micro finance institutions in poverty alleviation in Y ei County?

b. What strategies were used by microfinance in poverty alleviation

c. What are the challenges of Micro finance institutions in poverty alleviation in Y ei County?

1.6 Significance of the Study.

The significances of this study were:

a. The researcher hopes that, the study was to form a basis for further research on the impact of

micro finance institutions in poverty alleviation in general. This should lead to the improvement

in the standard ofliving in the people of Sudan as a whole.

b. The study was significant to the researcher for the award of bachelors' degree in business

administration.

c. The study was useful to policy makers of Sudan mICro finance institutions (SUMI) 111

providing ways of extending their services to the people of Yei county and Sudan as a whole.

1.7 Scope of the Study.

The study on the impact of Sudan micro finance institutions (SUMI) in poverty alleviation in Y ei

County was conducted between !St January to 20 February 2010, by using both quantitative and

qualitative research design. The study was conducted in Y ci County Southern Sudan with a

sample of 120 respondents used and data being collected by the researcher using sampling,

interviewing, questionnaires and observation methods. The study was specifically to seek the

impact of Sudan micro finance institutions (SUMI) in poverty alleviation in Y ei County in

Southern Sudan.

3

1.8. Conceptual frame work Independent Variables

MICRO FINANCE • Savings • Credit giving • Mobilization of funds • Financial Advice • Support Investment/growth of business

• Social monitoring

Source: Pandey I.M. (1995), Modified Version

Dependent Variables

POVERTY ALLEVIATION

• Raise in income • High savings • Spending Culture .• Growth in Business • Employment creation

_j

The independent variables include: Savings, Credit giving, Mobilization of funds, Financial

Advice, Suppo1t Investment/growth of business and Social monitoring.

While the dependent Variables Involves: Raise ii;i. income, High savings, Spending Culture,

Growth in Business, and Employment creation.

From the above illustration, microfinance institutions enable the poor to access credit facilities in

which they invest in their small business hence improving and alleviating the poverty levels in

the community.

Microfinance institutions create employment which leads to investment and at the same results to

mobilization of funds by the poor by doing so poverty levels are alleviated within the

4

2.0 Introduction

CHAPTER TWO

LITERATURE REVIEW

This chapter discusses the literature related to the role of microfinance institutions in

poverty eradication . The literature focused on the definition of micro finance, roles and

challenges faced by microfinance institutions and the operations of SUMI. The literature

was mainly taken from other secondary source of data.

2.1. Overview of Microfinance

According to Gert van (2004), microfinance is banking the unbankables, bringing credit

savings and other essential financial services with the reach of millions of people who are

too poor to be served by regular banks, in most cases because they are unable to offer

sufficient collateral. In general banks are for people with money, not for people without.

Yonus (2003), says microfinance is based on the premise that the poor have skills which

remain unutilized or under utilized. It is definitely not the lack of skills which make the

poor people poor-charity is not the answer to poverty; it only helps poverty to continue.

Poverty alleviation is any process which seeks to reduce the level of poverty in a

community or amongst a group of people or countries, it my be aimed at economic or non

economic reasons Miriam (1991 ).

According to Carls W. James M. Philippe E .. International, (1990) microfinance

institutions offer a variety of products and services which include credit methodology,

credit scoring, delivery channels, Housing microfinance, marketing strategies, marketing

intelligence and micro insurance .According to international (1988) 1 Microfinance

emphasizes on the services such as remittance, rural finance, saving, and social

monitoring.

According to Dale and Meyer (1989), as an international development strategy

microfinance institution represents a major shift from governmental "top down" to a

private "bottom up" approach and has revolutionized the approach to poverty alleviation

and economic development. It also continues to be a model of social entrepreneurship

brings creative business and financial strategies and tools to complex, social and

5

economic problems as well as wedge for empowerment of women and other

disadvantaged citizens in some societies.

Ebert and Griffin (2000), asserted that to expand finance and sustain microfinance,

microfinance institutions need to become sophisticated financial institutions that

structure, distribute and then finance a growing array of financial products and services to

the poorest of the global poor. This also requires increasingly sophisticated financing

strategies as the global capital markets and leading financial institutions become the

funding sources for micro finance institutions.

According to Peter and Kolari (2004), ce1iain microfinance institutions now confront

shifting missions from non profit idealistic non-governmental organizations to profit

seeking financial forms as one of the strategy. Increasing regulation of the microfinance

institutions as banks, insurers or regulated financial entities

2.1.1 Savings

Weiss (2003), defines savings as bringing back returns or in receipts the sum expended

or; incurring losses, though not gainful as; a saving bargain. Meanwhile McCarthy and

PeITealt (1993), say savings is all about avoiding unnecessary expense or waste, frugal,

not lavish or wasteful, economical as a saving cook.

Klein (1999) Acceptance of savings as a major tool carries an important human cost.

Savings can potentially control our lives incase of uncertainty. The impact of social

emerges when consumers must choose between accepting the immediate benefits of

savings or accepting explicit limitations or our every day choices when credit is available.

Where as, Belverd (2002) Asserts that, it's true that micro finance savings can reduce

vulnerability and risks as the majority if the clients have personal savings including the

obligatory savings. This is the main reason given as to why people save to enable them to

cope with severe crisis and vulnerability.

2.1.2 Credit Giving

Ramon (1993), defines credit as permission to delay payment for goods and services

while Miriam (1996) says it's the status of being trusted to pay money to somebody or

institution that lends it to one.

6

(Jantaloans.org) Janta enables the poor families to invest in their children's education in

Primary, secondary and vocational school, Janta's goal is to make education and micro

finance widely accessible and affordable with emphases on small loans and scholarship

for high need and high potential students.

Madura (I 992) adds by saying that credit giving allows poor people to take advantage of

economic opportunities, while increased earnings are by no means automatic; clients

have overwhelmingly reliable resources of credit to provide a fundamental base for

planning and expanding business activities. He asserts that clients who join and get credit

have better economic conditions than non clients.

2.1.3 Mobilization of Fund

Funds are defined as sum of money saved or made available for a particular purpose,

(Wild,(2003). Mobilization of funds refers to a strategy in which some funds are put aside

to finance a particular program.

Martenson (2005) says that consumer knowledge, involvement and risk are central

concepts behind funds mobilization, consumer's ability and opportunity to get access to

stock market information is strongly related to their involvement, which in turns

influence both familiarity and risk willingness.

Klein ( 1999), according to him, the principle function and aim of micro finance is to

mobilize funds for clients and the institution.

2.1.4 Financial Advice

Action Aid (1992) Financial Advise and support implies the burgeoning choice of financial products on the market.

The efficiency of Micro Finance Institutions (MFis) must be analyzed in terms of it's

economic or financial dimensions as well as it's social dimension; The first dimension

may be examined within traditional measures that reflect the micro finance institution's

social objectives in order to accommodate that such a micro finance institution is

effective, Klein (1995).

7

2.1.5 Support Investment/ Growth of Business

, Marew (1995), defines investment as the

to get a return at the end of the day.

commitment of funds in a business so as

Whil Pandey (1995) says it's the sum of money that is invested in a business or activity.

Adams and Hingurashi (I 987), states that many of the small operators found it hard to

generate sufficient revenues with which to cover their lending invest in technology and

pay for professional management and operations staff with a sufficient cushion to

absorb the occasional increases in credit losses that arise in periods of economic slow

down. In all cases microfinance institutions need to tap non aid sources for funds

whenever by offering deposits services or by obtaining whole sale funding from

commercial institutions if they are to grow beyond the limits of aid and subsidies.

2.1.6 Social Monitoring

Monitoring is the act of observing something and sometimes keeping a record of it. The

monitoring of a particular business is also done through recording in the books of

accounts( Ramon, 1993 ).

According to Madura (1992), social monitoring works with non profit and social sector

organizations that are engaged with some of the biggest and most complex social issues

of our day, we help non profit make innovative, step function, changes in their mission

related performance. In recent years monitoring has worked on over I 00 non profits -

related projects around the world.

2.2 POVERTY ALLEVIATION

Poverty Alleviation refers to all strategies possible which aim at educing the level of

poverty in a given community or country. It may be aimed at balancing a given economy,

(Gert Van,2004).

2.2.1 Raise In Income

Fabozzi (I 995), defines income as money received over certain payment for work or as

interest on investment. Bailey (1993) says raise in income means to increase the amount or

level of income.

8

Bhalla (1997) said, micro finance holds a big promise to raise mcome and create

employment to alleviate poverty in the developing countries. The Micro Finance

Institutions (MFI' s) are financial institutions with a primary aim of making credit available

to that segment of the population, which has been ignored by the commercial banking

system for not having collateral requirements.

Abugre (1994) supports that women clients have reported an increase in their incomes, and

it is this incomes that can help clients to solve some problems of poverty, isolation,

physical weakness as they can afford a good diet, they can now be able to deal with crisis

and as a consequence break the poverty trap.

2.2.2 High Savings

Pandey (1995), asserts that, fluctuations in savings do not only obstruct the effoiis to

cope with risks and vulnerability in times of crisis but also the efforts to break out of

poverty.

Gupta and Bhalla (200 I) argued that, the problem with high savings is that, it lacks

comprehensive details because some clients may share accounts with their husbands .. For

one to draw a line demarcation between saving accruing from the enterprise and that of the

husband becomes complicated to measure in a quantitative manner.

2.2.3 Spending Culture

According to Madura(l 992), to spend means to give or pay money for goods and services,

or money spent or available to be spent, whereas culture is the customs, art and social

institutions of a particular group or nation.

Strand (1998), asserts that, it's paramount for microfinance institutions to train the poor

suitable spending culture, in which the poor will be able to increase their saving eventually

increase their investments or expand their business.

2.2.4 Growth in Business

This is the process of growing or development in a particular activity Weiss (2003).

Carls and Phillipe (1999) said that alleviation of mass poverty is the overarching objective

of economic development of policy makers in most developing countries when they

9

achieved political independence. They also emphasiz·e about the. instrumental role of rapid

growth in income and its better promotion of business growth to achieve the objective of

Pove1ty Alleviation.

2.2.S Employment Creation

Employment creation is a process of making more paid jobs available (Marew, 1995).

Achary and Beimet (1982), these scholars emphasized that, the concern for job creation

resonates increasingly in the micro finance industry itself as a result of pove1ty reduction.

Major micro finance industries justify their- work also with the expected impact on job

creation.

They fiuther argued that the word "employment" may not actually mean full time, stable

and remunerated jobs, but also largely unpaid family jobs.

2.3 RELATIONSHIP BETWEEN MICRO FINANCE AND POVERTY

ALLEVIATION

Poverty is defined as an mcome ( or more broadly welfare) level below a socially

acceptable minimum and micro finance as one of a range of innovative financial

aiTangements designed to attract the poor as either borrowers or savers, Weiss (2003).

He also said the case for microfinance as a mechanism for poverty reduction is simple. If

access to credit can be improved, he argued that the poor can finance productive

activities that will allow income growth, provided there are no other binding constraints.

This is a route out of pove1ty for non-<lestitute chronic poor. For the transit01y poor, who

are vulnerable to fluctuations in income that can bring them close to or below the pove1ty

line, micro finance provides the possibility of credit at times of need and in in some

schemes the opportunity of regular savings by a household itself can be drawn on.

Altafsamo (2008) supports that microfinance if implemented in true spirit can do wonders

but in countries like Pakistan the impact has not been so impressive although several

studies have shown it's positive impact on the ground realities are very different and

these need to be addressed by theses multi lateral donor agencies. Most of the loans are

not properly utilized. Special emphasis is needed to be given on the capacity building of

the prospective borrower, train to catch fish themselves by building capacity to utilize the

10

2.4 The impact of Micro-finance institutions in poverty alleviation

Action Aid Leading institutions long existed in many parts of the world, especially in

rural areas, and they still survive. They provided the rural population with access to

savings within the local areas and with a certain cushion against economic fluctuations,

and they encouraged a cooperative and community feeling. The groups formed provided

joint spreading valuable information that was useful for economic and social progress.

Fluglescing and Chandler (1986) said that the absence of commercial banks had led to

non-conventional f01ms of lending. The recent prominence given to micro-credit owners

much to the success of a relatively few micro-credit programmes and their increasing

scale. The Grameen Bank of Bangladesh, the most promenade of the successes, now

reaches over 2 million people with cumulative lending of about $2.1 billion. Progress had

also been recorded in several transitions economies, mixed in some cases. Such

institutions had not only achieved a degree of success but they achieved a degree of

success, and have also managed to attract donor support and press attention.

2.5. Limitations of micro finance institutions in poverty alleviation Adams (1992), argued that many financial institutions remain non profit institutions

without a corporate legal status, raising concerns over the legal basis for recovery of

default loans. Rating Agencies have inadequate knowledge about microfinance

operations and microfinance institutions are therefore perceived as posing higher risks. In

addition, commercial banks believe that the portfolios of many microfinance institutions

are inadequately secured, which could prompt regulators to impose more rigorous

controls. Finally, the more recent approaches to secure new sources of funds such as

securitization and insurance of bonds or notes, will probably suffer given the current

credit crunch in the financial markets.

Adams and Hingurashi ( 1987), states that many of the small operators find it hard to

generate sufficient revenues with which to cover their lending invest in technology and

pay for professional management and operations staff with a sufficient cushion to absorb

the occasional increases in credit losses that arise in periods of economic slowdown. In

all cases microfinance institutions need to tap non aid sources for funds whenever by

offering deposits services or by obtaining wholesale funding from commercial

institutions if they are to grow beyond the limits of finance from aid and subsidies.

12

Klein (1999), asserted that Acceptance of savings as a major tool, carry an important

human cost. Savings can potentially control our lives in case of unce1iainty. The impact

of social control emerges when consumers must choose between accepting the immediate

benefits of savings or accepting the immediate benefits of savings or accepting explicit

limitations or our everyday choices when credit is unavailable.

Martenson (2005), further mentioned that consumer knowledge, involvement, and risk

are central concepts behind funds mobilization, consumers ability and opportunity to get

access to stock market information is strongly related to their involvement, which in tum

influence both familiarity and risk willingness.

According to Madura (1992), asse1ied that social monitoring works with non profit and

social sector organizations that are engaged with some of the biggest and most complex

social issues of our day, we help non profit make innovative, step function, changes in

their mission related performance.

Fabozzi (1995), said that, one of the role of Microfinance Institutions is to analyze the

frame work within which it delivers its financial advice and provide an assessment of

their operations and financial management, microfinance institutions are examined

because of their current importance to a special group of consumers.

Janta enables the poor families to invest in their children's education 111 primary

secondary and vocational school, Janta's goal is to make education, microfinance, widely

accessible and affordable with an emphasis on small loans and scholarship for high need

and high potential students(Jantaloans.org)who is the author of this piece ofvarticle?.

Bhalla ( 1997), said that, micro finance holds a big promise to raise income and create

employment to alleviate poverty in the developing countries. The Microfinance

Institutions (MFis) are financial institutions with a primary of making credit available to

that segment of the population, which has been ignored by the commercial banking

system for not having collateral requirements.

13

CHAPTER THREE

METHODOLOGY

3.0 Introduction

This chapter endeavors to describe the methods and techniques that were used to collect

and analyze the data. It explained in detail the method of data collection, population,

sample selection techniques, research design, rese·arch tools and measures, procedures

and limitations of the study.

3.1 Research Design

The research used both qualitative and quantitative research design. Qualitative design

was used to detailed realities. Quantitative design was used such that some information

would be put in numerical form.

3.2 Sample Framework.

Table 3.1: Sample Framework.

Gender Management and clients Total staff

Male 12 36 48

Female 18 54 72

Total

3.2.1

30 90 120

Sample Size

The sample population consisted of oper11tional managers, financial managers, loan

officials and clients.

The target population was 120.

3.2.2 Sampling Techniques

The researcher employed three sampling techniques for this research, they included;

quota sampling, multistage cluster sampling and purposive sampling.

14

Quota sampling

This addressed the issues of repetitiveness where matrix describing the characteristics of the

target population was used to know what proportion of the population is male and female, and

for each sex what proportion fall into various education levels.

Multi stage cluster sampling

This involved two basic steps; listing and sampling of the study population. The list of primary

sampling units comprised of operation manager, financial managers, loan officials and clients.

This was compiled and satisfied for sampling. The sample of these units were selected and then

listed.

Purposive sampling

In this technique, sampling of population was on the basis of the researcher's own knowledge of

the population selected, its element and the nature of the research design of questionnaires where

the researcher wished to select particular respondents to test the broad applicability of the

research questions designed.

3.2.3 Sampling Procedures

A primary sample of forty ( 40) respondents was taken from the study population of

SUMI to participate in the trial run of the instruments to perform items analyzed. Then a

secondary sample of one hundred and twenty (120) respondents; comprising of operation

managers, financial managers, loan officials and clients were sampled quotably and

purposively to prove the degree of validity of the instruments.

3.3 Area of Study

The study was conducted in Yei County, Southern Sudan in Sudan microfinance

institution (SUMI). This area was chosen because the researcher found it that it would be

more convenient to collect information from employees in different departments and

clients of SUMI in Yei County.

15

3.4 Data Collection

The researcher used questionnaires, interviews and sampling as the mam tools for

collection of data. The selection of these tools have been guided by the data to be

collected, time available as well as the objectives of the study. The overall aim of this

study was to investigate the impactof microfinance institutions in poverty alleviation in

Southern Sudan, specifically SUMI in Yei County.

3.4.1 Questionnaires

Questionnaires were advanced by the researcher to get information on the impact of SUMI in

poverty alleviation in Yei County. The questionnaires consisted of open ended and close! ended

type of questions, which were administered to various respondents of the population sampled in

SUMI Yei County. It's anticipated that the questionnaires helped to collect data from

respondents who did not have time to be interviewed. The respondents filled/answered the

questionnaires at their own free time.

3.4.2 Interview

In this method, oral interviews were carried out with categories of employees like operation

managers, financial managers, loan officials and clients. The researcher asked question and at the

same time fill in answers.

3.4.3 Sampling

In this method the sample consisted of one hundred and twenty (120) respondents in SUMI, Yei

county in Southern Sudan which were distributed as; thirty managers and staff (30) and ninety

clients (90).

3.4.4 Source of Data

Mainly two sources were used to get data on the impact of SUMI in pove1ty alleviation in

Y ei County Southern Sudan.

3.4.5 Primary sources

This was obtained by the study especially designed on the survey of the impact of SUMI in

poverty alleviation in Y ei County Southern Sudan. This was conducted by applying the

following;

16

3.4.5.1Direct personal interview

Under this method, there was face to face contact of the respondents from whom the information

shall be obtained. The interviewer asked question pe1taining the survey and collect desired

information.

3.4.5.2 Indirect oral interview

Under this method, the researcher contacted third parties (clients) capable of supplying necessary

data about the impact of SUMI in poverty alleviation in Y ei County Southern Sudan.

3.4.6 Secondary sources

Here data was collected from the previous reports on the study; internet and books were used as

the secondary sources of data.

3.5 Data Analysis

The researcher organized and extracted meanings from data collected during interview

sessions, administration of questionnaires and sampling to ease the process of analyzing

data. The data collected through questionnaires and sampling were quantitatively

analyzed. The quantitative data analysis aimed at exploration of the study; interpret

realities as expressed by the respondents from the field.

The following techniques were used to analyze data qualitatively; statistical analysis and

narrative analysis. The qualitative data was analyzed from interviews, sampling and

questionnaires.

3.6 Assumptions and Limitations

There was information limitation in fmm of hardships in accessing information, where

some of the respondents were reluctant in providing information to the researcher.

The study would have been conducted in all microfinance institutions in Sudan, but time

and financial constraints dictated up on a small size.

The area of study was far and was a ma] or financial constant to the researcher. In order

to successful with the study, the researcher sought for financial support from well

wishers, friends and family.

Lack of curiosity among the respondents to meet the time frame for responds. This

hindered and limited the collection of data.

17

3. 7 Ethical Consideration

The researcher acquired an introductory letter from the University introducing her to the

field such that she may not be doubted by the respondents. The researcher explained to

the respondents the purpose and benefits of carrying out the study.

18

CHAPTER FOUR

PRESENTATION, INTERPRETATION AND ANALYSIS OF FINDINGS

4.0 Introduction

This chapter presents data that was collected during the study and eventually organized

logical and orderly manner in light of the objectives of the research. The study further

investigated the impact of micro finance institutions on poverty alleviation in Y ei county,

the strategies used by micro finance institutions in poverty alleviation in Yei County and

determine the limitations of micro finance institutions in poverty alleviations in Y ei

county. This was in light of the lack of significant studies that investigated the research

documentation that showed the impact of these micro finance institutions' service on

poverty alleviation The data collected was analyzed using descriptive statistics such as

frequencies tables and cross tabulation. The data has been presented in accordance with the

research objectives as shown below.

The study also entails demographics details of micro Finance Institutions and pove1iy

alleviation in southern Sudan case study Y ei microfinance institution.

a) To investigate the impact of micro financ·e institutions on pove1iy alleviation in Yei

county.

b) To find out the strategies used by micro finance institutions in poverty alleviation in Yei

County.

c) To determine the limitations of micro finance institutions in poverty alleviations in Yei

county.



b. What strategies were used by microfinance in poverty alleviation?

c. What are the challenges of Micro finance institutions in pove1iy alleviation m Yei

County?



b. What strategies were used by microfinance in poverty alleviation?

19

..... ·,,

c . What are the challenges of Micro finance institutions in poverty alleviation in Y ei

County?

4.1 Gender of Respondents Both male and female respondents were involved in the study to ascertain whether there

is gender balance in the organization.

The respondents were asked to state the gender status and below were their responses.

Table 4.1 Showing Gender of Respondents.

Gender Frequency Percentage

Male 48 40

Female 72 60

Total 120 100

Source: Primary Data

Figure 4.lShowing Gender of Respondents

60% Female

Gender of respondents

---- -----------

I

.____ ___ ___, __ j Source Primary Data

The above pie chart 4.1 indicates that the Micro:finance organization has more female staff than

male that constituted 60% and 40% of the population respectively. The findings revealed that the

female staffs are slightly bigger than their male counter parts.

20

--·-,. ------

4.2 Qualifications of the Respondents

The respondents were asked to state their qualifications. This was aimed at asce rtaining

ondents that the respondents had the required skills for the j ob. The responses of the resp

were as follows.

Table 4.2 Showing the Qualification of Employees

Particulars Frequency

Secondary

Certificate 24

Diploma 48

Degree 48

Total 120

Source: Primary data

Figure 4.2: Showing the Qualifications of the Employees


Percentage

20

40

40

100

lcate ■ Certlf

• Dlplo

■ Degre

ma e

The table 4.2 above shows that some respondents or workers of the Microfinance orgaruza

had attained a level of education and 20% of them had attained up to secondary while 40'¾

respondents had attained a level of diploma and 40% also of the respondents had atta

tion

o of the

ined a

degree in their qualifications for the job.

trained The findings indicate that almost all the staff have qualifications and therefore are well

and educated with enormous skills and competence that enable them to perform thei r duties

effectively and efficiently. 21

J

4.3. The Age of the respondents The employees were asked about their age and they responded as below

Table 4.3: Showing the age of the respondents

Particulars Frequency (F) Percentage (%)

20-25 25 21

26-35 80 67

36-45 10 8.3

46 and Above 5 4.2

Total 120 100


In reference to the above findings in the table 4.3, 67% of the employees were found to be in the

age limit of26-35 years while 21% of the respondents were found to be in the age limit of20-25

and the other respondents of 8.3% were found to be in the age limit of 36-45 while the other

4.2% were in the age limit of 46 and above.

Figure 4.3: Showing Age of the respondents

Age of Respondents


22

4.4: The position of the respondent This involved asking the respondents questions that relate to whether the organization has

written policies and procedures for all its operations.

Table 4.4 Showing Position of the respondent


Loan officials 25 21

Financial Managers 5 4.2

Operation Managers 10 8.3

Clients 80 67

Total 120 100


According to the table 4.4 above 67% of the respondents were clients to the microfinance while

21 % of the respondents were loan officials and the other 8.3% of the respondents were operation

managers and a small percentage of 4.2% of the respondents were financial managers thus the

researcher found out that the most frequent members to the microfinance institution were clients

with a percentage of 67%.

Figure 4.4: Showing Position of the respondent

Operations Manager 8.3%


Financial Managers 4.2%

Clients 67%

Loan Officials 21%

4.5. To investigate the impact of micro finance institutions on poverty alleviation in Yei county.

The first objective of this research was to To investigate the impact of micro finance

institutions on poverty alleviation in Yei county. To achieve this objective, the

23

respondents were asked to react the given statements. Data on this objective was analyzed

under the research question "What is the impact of micro finance institutions in poverty

alleviation in Yei County?" The results are presented in table 4.5 respondents below.

Response on how SUMI operations benefited the respondents

Table 4.5 showing Response on how SUMI operations benefited the respondents

Responses Frequency (F) Percentage (%)

Very Good 25 21

Good 80 67

Fair 10 8.3

None 5 4.2

Total 120 100


From the findings in the table above 4.2% say that they don't know how SUMI has benefited the

society of Y ei while a percentage of 8.3% of the respondents responded fair to the question and

21 % of the respondents responded very good while the biggest percentage of 67 of the

respondents said that SUMI has benefited the society good.

Figure 4.5: Response on how SUMI operations benefited the respondents

Very Good 21%

Good67% ]


4.6. The extent that SUMI has helped poverty alleviation in Yei

It was to assess whether SUMI has helped in poverty alleviation and below was the

response

24

Table 4.6 showing the extent that SUMI has helped poverty alleviation in Yei

Responses Frequency (F) Percentage (%)

Above Average 5 4.2

Average 80 67

Below Average 25 21

Don't know 10 8.3

Total 120 100

In view of the analysis from table 4.6 above it was found out that 67% of the respondents support

that SUMI has averagely helped in the poverty alleviation in Yei county while 21 % of the

respondents say it has helped Yei county in poverty alleviation on below average basis and 4.2%

of the respondents say that SUMI has helped in poverty alleviation in Y ei county above average

basis while 8.3% of the respondents say they don't know whether SUMI has helped Yei County

in Poverty alleviation.

Figure 4.6 showing the extent that SUMI has helped poverty alleviation in Y ei

[ 21% ]

67% ~


4.7. To find out the strategies used by micro finance institutions in poverty alleviation

in Y ei County.

The second objective of this research was to find out the strategies used by micro finance

institutions in poverty alleviation in Yei County. To achieve this objective, respondents

were asked to react to given statements. Data on this objective was analyzed under the

research question "What strategies were used by microfinance in poverty alleviation?"

The results are presented in tables below.

25

Table 4. 7 showing the ways in which SUMI extends its services to its clients


Access credit facilities 80 67

Mobilize savings 4 3.3

Create employment 25 21

Health service access 11 9.2

Insurance - -Total 120 100


Figure 4. 7 showing the ways in which SUMI extends its services to its clients


m Access to credit facilities

■ Mobilize savings

□ create employement

□ Health services access

■Insurance

The Table 4.7 above it shows that 67% of the respondents agreed that SUMI should use Access

of credit facilities as the best way in which it can extend its services to its clients, while other

respondents with 21 % agreed that it should use creating employment as the best way of

extending its services to the clients, yet some others with a percentage of 3.3% were suggesting

that it should use health services access as a way of extending its services to the community and

9.2% of the respondents were suggesting that SUMI should use Mobilizing savings as a way of

extending its services to the cJients.

4.8. The possible ways that SUMI can implement in extending its services to its clients.

This questionnaire was intended to find out the possible ways that SUMI can implement

in extending its services to its cJients and the research that was carried out is as below;

26

Table 4.8: Showing The possible ways that SUMI can implement in extending its services to

its clients


Ensuring loan payment 80 67

Empower women 4 3.3

Recruit, train and retain good 25 21

staff

Targeting the poorest and 11 9.2

converging costs

Mobilizing savmgs and - -

ensuring their safe use

Total 120 100


Figure 4.8 showing The possible ways that SUMI can implement in extending its services

to its clients


m Ensuring loan payement

■ Empower women

□ Recruit, train and retain good staff

□Targeting the poorest and convenient costs

■ Mobilizing savings and ensuring their safe use

In reference to table 4.8 above the majority of the respondents. 67% of the respondents agreed

that SUMI should use Ensuring Loan payment as the best way in which it can implement in

extending its services to its clients, while other respondents with 21 % agreed that it should use

Recruit, train and retain good staff as the best way in which it can implement in extending its

services to its clients, yet some others with a percentage of 3.3% were suggesting that it should

use Targeting the poorest and converging costs as the best way in which it can implement in

extending its services to its clients and 9.2% of the respondents were suggesting that SUM!

27

should use Empower women as the best way in which it can implement in extending its services

to its clients.

4.9. To determine the limitations of microfinance institutions in poverty alleviations in Yei county.

The third objective of this research was to determine the limitations of micro finance

institutions in poverty alleviations in Yei county. To achieve this objective, respondents

were asked to react to given statements. Data on this objective was analyzed under the

research question "What are the challenges of Micro finance institutions in poverty

alleviation in Yei County?" The results are presented in tables both for individual clients'

respondents and corporate clients' respondents below.

The Limitations of SUMI In Extending Its Services

This question was intended to find out whether there are regulations sufficient to bank accounts

personnel access to custody of cash received in the bank and the responses were as follows;

Table 4.9. The limitations of SUMI In Extending Its Services


Lack of saving/credit culture 80 67

Inflation rate 4 3.3

Natural Calamities 25 21

Politicized loans 11 9.2

Limited funding by micro - -

finances

Total 120 100


28

Figure 4.9showing the Limitations of SUMI in Extending Its Services

80

60

40

20

0 JI


■ Laci< of saving and credit culture

■ Inflation rate

Natural calamities

From the finding in table 4.9 above the majority of the respondents, 67% agreed that Lack of

saving/credit culture is the major limitation of SUMI in extending its services to its clients, while

other respondents with 21 % agreed that it is Natural calamities which is the major limitation of

SUMI in extending its services to its clients, yet some others with a percentage of 3.3%

supported that it was Politicized loans which was the major limitation of SUMI in extending its

services to its clients and 9 .2% of the respondents supported Inflation rate as the major limitation

of SUMI in extending its services to its clients.

4.10. The solutions to the above limitations

This questionnaire was intended to discover the solutions to the above limitations and the

responses were as follows;

Table 4.10. The solutions to the above limitations


Encourage savmg and credit 80 67

culture

A void politics in business 4 3

Proper loan process 25 21

Government intervention on 11 9.2

interest rates

Strengthening the legal system - -

Total 120 100


29

Figure 4.10 Showing Solutions to the Above Limitations


From the :findings in the table 4.10 above the majority of the respondents. 67% agreed that

Encourage saving and credit culture is the best solution to the limitations of SUMI in extending

its services to its clients, while other respondents with 21 % agreed that it Proper loan process

which the best solution to the limitations of SUMI in extending its services to its clients, yet

some others with a percentage of 3% supported Government intervention on interest rates as the

best solution to the limitations of SUMI in extending its services to its clients and 9.2% of the

respondents supported Avoiding politics in business as the best solution to the limitations of

SUMI in extending its services to its clients.

The question was to find out services offered by SUMI and the responses were as follows,

Table 4.11. The Solutions to the Above Limitations


Credit Methodology 80 67

Rural finance 4 3

Housing Microfinance 25 21

Marketing strategies 11 9.2

Micro Insurance - -

Total 120 100


From the table above table 4.11 of the respondents suggested that Credit Methodology is the best

service offered by SUMI in Yei County, while the other 21% of the respondents supported

Housing Finance as the best service offered by SUMI, yet 3% of the respondents. were

30

suggesting that Marketing strategies was the best service offered by SUMI and rest of the

respondents with a 9.2% suggested that Rural finance was the best service offered by SUMI.

Figure 4.11 showing solutions to the above limitations


4.12. The challenges faced in acquiring the services of SUMI This questionnaire was intended to find out whether all disbursements are duly authorized

by officers in charge of finance and the responses were as follows;

Table 4.12. The challenges faced in acquiring the services of SUMI


Government policy 80 67

Political Instability 4 3

Monetary and fiscal policy 25 21

Lack of enough resources 11 9.2

Business environment - -Total 120 100


31

Figure 4.12 showing The challenges faced in acquiring the services of SUMI


According to the data investigated on table 4.12 it was recognized that 67% of the respondents

supported political instability as the most pressing challenge faced in acquiring SUMI Services,

while 21 % of the respondents were in support of government policy as the challenge faced in

acquiring the services of SUMI. 3% of the respondents suggested that Lack of enough resources

was the biggest challenge in acquiring the services of SUMI and 9 .2% of the respondent were in

support of monetary and fiscal policy as the biggest challenge faced in acquiring the services of

SUMI.

32

CHAPTER FIVE

DISCUSSION & SUMMARY, CONCLUSION, RECOMMENDATIONS AND

SUGGESTIONS

5.0 Introduction This chapter discusses the findings of the study the formulate conclusions,

recommendations and areas of further study. The study covered the analysis of the impact

of microfinance institutions in poverty alleviation a case study: Sudan Microfinance Y ei

County

The study has three major objectives and research questions.

a) To investigate the impact of micro finance institutions in poverty alleviation in Yei county.

b) To find out the strategies used by micro finance institutions in poverty alleviation in Yei County.

c) To establish the limitations of micro finance institutions in pove1iy alleviations in Yei county.

5.1 Discussion

5.1.1 The Impact of Microfinance institutions on poverty alleviation in Yei County In analysis, the first objectives to find out the Impact of microfinance institutions in

poverty alleviation in Yei County, Sudan Microfinance uses various aspects which were

looked at as, it was established that Sudan Microfinance has put in practice systems

which include, Access credit cards mobilizing savings, bridge the poverty gap, education

funding, health services access and improvement of infrastructure.

The first objective of this study was to investigate the impact of microfinance institutions

on poverty alleviation in Yei County. Data analysis and presentation of questionnaire

responses from the respondents revealed, the following findings under this objective.

The findings revealed the 67% of the respondents agree or supp01i that SUMI has helped

in the poverty alleviation in Yei County. That is evident in table 4.6. In addition 67% of

respondents agreed that SUMI should use Access of credit facilities as the best way in

which it can extend its services to its clients. This is in line with the findings of Adams

and Je1Ty (1979), who assetied that microfinance institutions have adopted innovative

ways of providing credit and savings services to the entrepreneurial poor.

33

The second objective is to find out the strategies used by micro finance institutions in

poverty alleviation in Yei County. Data analysis and presentations of questionnaire

responses from respondents revealed the following findings under this objective.

The findings revealed that 67% of the respondents agreed that SUMI observed that

ensuring loan payment strategy was the best way in which it can implement in extending

its services to its clients.

In addition other strategies used by SUMI were like empowering women, target the

poorest, mobilizing savings and recruiting training, and retaining good staff as well. This

finding are in contrary with the findings of Peter and Kolari (2004 ), ce1iain micro finance

institutions now confront shifting missions from non profit idealistic non-governmental

organizations to profit seeking financial forms as one of the strategy. Increasing

regulation of the microfinance institutions as banks, insurers or regulated financial

entities, thus evident on table 4.8. where 67% of the respondents agreed that SUMI

should use ensuring loan payment as the best way in which it can implement in extending

its services to its clients, while other respondents with 21 % agreed that it should use

recruit, train, and retain good staff as the best way in which it can implement in extending

its services to its clients, yet some others with a percentage of 8.5% argued that SUMI

should use targeting the poorest and covering costs as the best strategy in which it can

implement in extending its services to its clients and 4.3% of the respondents agreed that

SUMI should use empowering women as the best way in which it can implement in

extending its services to its clients.

5.1.2 The strategies used by microfinance Institution in Poverty alleviation in Yei County. It has managed to put up services like; ensuring loan repayments, targeting the poorest

and covering costs, mobilizing savings and ensuring their safe use, empowerment of

women, recruiting, training and retaining good staff.

Targeting the poorest and covering costs; that is the secret behind the success of the

Sudan Microfinance. House hold Index or Participatory Rural Appraisal (PRA) - also

variously called Participatory Wealth ranking (PWR) methods can be used with about

same cost implications.

34

Mobilizing Savings and ensuring their safe use this strengthens the financial self

sufficiency of the microfinance, it reduces the dependency of the lender institution on

external boJTowings or grants (Savings represent a stable and cheaper source of funds and

allow an institution to engage in community-based finance as opposed to finance that

may be subject to the priorities of government or donors), and members/clients of

financial institutions have savings needs as well as credit needs and savings mobilization

gives them access to that much needed service.

Empower Women throughout the world; women continue to be responsible for more than

90% of domestic and child care responsibilities. Therefore, it's really impmiant for micro

enterprise institutions to design the loan product, and particularly the [application]

process, to respond to women's needs: small loans, very simple application processes that

definitely do not require being literate, sho1i terms and very short waiting times [ or]

turnaround times, and even lower opportunity costs in the loan process than in a male

oriented program. Microfinance institutions also need to understand how women look at

their work, how they manage their micro enterprises, and how they spend their increased

income.

Recruit, Train and Retain Good Staff. Sudan Microfinance must have well-motivated

staff who are really interested and passionate about their work, We lend to people

because they have the capacity to repay, not because we feel sorry for them. That is the

business. But remember that the business is not about paper qualifications; it's about

relationships. You need people who can build relationships and that is not a skill you can

teach. You can foster a good environment for that, but you cannot teach someone how to

be interested in the client's activity, or how to generally care about the client improving

his or her business. So, look for the essential skills first. Paper qualifications are on added

advantage.

Measuring the direct Impact of the Program. These impact assessments are about clients

and client behavior and how clients change. It helps address issues such as whether

products and services are responding to the changing needs of clients, how to change the

design of the services, why people drop out of a program or how to attract people who do

not access existing services. To be able to do this, you need a baseline study, based on

which impact can be measured.

35

5.1.3 The limitation of Microfinance Institution on Poverty Alleviation To establish the limitations of micro finance institutions in poverty alleviations in Yei

county. Sudan microfinance is faced with the following limitations; inadequate fonds to

meet the target market needs, high rate of delinquency, loans that have not been repaid

timely or amount past due, Lack of skilled personnel in the microfinance, Insecurity,

insnrgency, Poor infrastructnre and the nnmerous taxes. However, the SUMI has some

limitations, the third objective was to determine the limitation of microfinance institution

on poverty alleviation, Data analysis and presentation of questionnaire responses from

respondents revealed the following findings under the objective.

The findings in table 4.9 revealed that 67% agreed that lack of saving/credit cultnre is

the major limitation of SUMI in extending its services to its clients, other limitations are;

politicized loans, natural calamities, inflation rate and limited fonding by micro finances

with percentages of 9.2, 21, 3.3 and 67% consecutively. However, according to Adams

(1992), many financial institutions remain non profit institutions without a corporate legal

status, raising concerns over the legal basis for recovery of default loans. Rating

Agencies have inadequate knowledge about microfinance operations and microfinance

institutions are therefore perceived as posing higher risks. In addition, commercial banks

believe that the portfolios of many microfinance institutions are inadequately secured,

which could prompt regulators to impose more rigorous controls. Finally, the more recent

approaches to secure new sonrces of funds such as securitization and insurance of bonds

or notes, will probably suffer given the cnrrent credit crunch in the financial markets.

The findings of the literature review According to Adams and Meyer (1993), faced with

the challenges of increasing their reach while ensuring the sustainability of their

programmes microfinance providers face pressnre to keep costs down and operate more

efficiently. Small microfinance institutions operating with high overheads costs, find it

difficult to compete with larger operations where the fixed costs are shared among many

more clients and accounts.

In addition some institutions need to diversify the risks associated with operating in a

small geographical area with a limited product offering and client base. Most financial

institutions also have limited or no access to financial markets.

36

To suggest recommendations Sudan Microfinance should put in place the following,

Ensuring Loan Repayment thus it should take legal actions against fraudulent loan

officers and marauding Borrower, The bottom-line is that management must be equal to

their jobs, otherwise they face legal action or they quit, Loan defaulters are handled using

a community approach by actions of other group members and monitoring program

progress.

5.2 Conclusion The study investigated the impact of micro finance institutions on poverty alleviation

although the findings of this research revealed positive responses which were slightly

above average, having analyzed microfinance and poverty alleviation it is worth that the

system of microfinance and how it works, These are some of the principles that pause

some difficulty to the whole aspect of microfinance in turn slow down the expansion of

this industry. Institutions engaged in micro finance should be able to charge the interest

rates needed to cover the high costs of making small loans, and to become sustainable.

Performance standards, prudential norms and regulations, and reporting requirements

should fit the characteristics of the microfinance sector, for example: reliance on overall

portfolio performance rather than on traditional collateral on loans. Laws and regulations

should encourage a range of legal structures to provide financial services to poor people,

including credit and savings cooperatives, NGOs, regulated microfinance institutions,

finance companies, and commercial banks with mici·ofinance portfolios.

Micro finance institutions (MFis) that meet appropriate safety and soundness standards

should be given the regulatory structures that allow them to mobilize voluntary savings

from borrowers and from the general public. Appropriate legal structures are needed to

enable institutions engaged in microfinance to be financially viable, to meet the needs of

target clients and to mobilize domestic and international resources. Requirements on

good governance and

Management in MFis are needed, to ensure fiduciary oversight and to generate the

needed credibility. Regulation and supervision should fit the various stages and legal

structures of organizations engaged in microfinance. Legal structures and financing

mechanisms are needed that enable MF!s to mobilize equity from clients, the domestic

37

private sector, employees of MFis, and other sources, to generate credible local

accountability strnctures. Favorable tax treatment can encourage the development of the

needed infrastructure in microfinance institutions, and reflect the high costs of providing

financial services to poor people.

The findings showed that the Microfinance organization had more female staff than male

that constituted 60% and 40% of the population respectively. The findings revealed that

the female staffs are slightly bigger than their male counter parts.

Also it was revealed that some respondents or workers of the Microfinance organization

had attained a level of education and 20% of them had attained up to secondary while

40% of the respondents had attained a level of diploma and 40% also of the respondents

had attained a degree in their qualifications for the job.

The findings indicate that almost all the staff have qualifications and therefore are well

trained and educated with enormous skills and competence that enable them to perform

their duties effectively and efficiently.

In reference to the findings in the table 4.1 of the employees were found to be in the age

limit of 26-35 years while 20.2% of the respondents were found to be in the age limit of

20-25 and the other respondents of 8.3% were found to be in the age limit of 36-45 while

the other 4.2% were in the age limit of 46 and above this means that most of the

respondents were in the age limit 26- 35 with a percentage of 67%

According to the findings in table 4, 67% of the respondents were clients to the

microfinance while 20.2% of the respondents were loan officials and the other 8.3% of

the respondents were operation managers and a small percentage of 4.2% of the

respondents were financial managers

Should use Empower women as the best way in which it can implement in extending its

services its clients.

From the finding in table the majority of the respondents. 67% agreed that Lack of

saving/credit culture is the major limitation of SUMI in extending its services to its

clients, while other respondents with 20.2% agreed that it is Natural calamities which is

the major limitation of SUMI in extending its services to its clients, yet some others with

a percentage of 8.5% supported that it was Politicized loans which was the major

38

limitation of SUMI in extending its services to its clients and 4.3% of the respondents

supported Inflation rate as the major limitation of SUMI in extending its services to its

clients

From the findings in the table the majority of the respondents. 67% agreed that

Encourage saving and credit culture is the best solution to the limitations of SUMI in

extending its services to its clients, while other respondents with 20.2% agreed that it

Proper loan process which the best solution to the limitations of SUMI in extending its

services to its clients, yet some others with a percentage of 8.5% supported Government

intervention on interest rates as the best solution to the limitations of SUMI in extending

its services to its clients and 4.3% of the respondents supported Avoiding politics in

business as the best solution to the limitations of SUMI in extending its services to its

clients.

From the table 67% of the respondents suggested that Credit Methodology is the best

service offered by SUMI in Yei County, while the other 20.2% of the respondents

supported Housing Finance as the best service offered by SUMI, yet 8.5% of the

respondents were suggesting that Marketing strategies was the best service offered by

SUMI and rest of the respondents with a 4.3% suggested that Rural finance was the best

service offered by SUMI.

According to the data investigated in table 4.11, it was recognized that 67% of the

respondents supp01ied political instability as the most pressing challenge faced in

acquiring SUMI Services, while 20.2% of the respondents were in support of government

policy as the challenge faced in acquiiing the services of SUMI. 8.5% of the respondents

suggested that Lack of enough resources was the biggest challenge in acquiring the

services of SUMI and 4.3% of the respondent were in support of monetry and fiscal

policy as the biggest challenge faced in acquiring the services of SUMI,

From the findings in the table 4, 4.2% say that they don't know how SUMI has benefited

the society of Yei while a percentage of 8.3% of the respondents responded fair to the

39

question and 20.2% of the respondents responded very good while the biggest percentage

of 67 of the respondents said that SUMI has benefited the society good.

In view of the analysis from table 6, it was found that 67% of the respondents support

that SUMI has averagely (50%) helped in the poverty alleviation in Yei county while

20.2% of the respondents say it has helped Yei county poverty alleviation on 25% basis

and 4.2% of the respondents say that SUM! has helped in poverty alleviation in Yei

county on a! 00% basis while 8.3% o f the respondents say it has helped in poverty

alleviation of about I 0% and below thus this indicates that SUM! has averagely helped

the community of Y ei in poverty alleviation.

In the Table 4.6 it showed that 67% of the respondents agreed that SUMI should use

Access of credit facilities as the best way in which it can extend its services to its clients,

while other respondents with 20.2% agreed that it should use creating employment as the

best way of extending its services to the clients, yet some others with a percentage of

8.5% were suggesting that it should use health services access as a way of extending its

services to the community and 4.3% of the respondents were suggesting that SUMI

should use Mobilizing savings as a way of extending its services to the clients

In reference to table: 4. 7 the majority of the respondents. 67% of the respondents agreed

that SUMI should use Ensuring Loan payment as the best way in which it can implement

in extending its services to its clients, while other respondents with 20.2% agreed that it

should use Recruit, train and retain good staff as the best way in which it can implement

in extending its services to its clients, yet some others with a percentage of 8.5% were

suggesting that it should use Targeting the poorest and converging costs as the best way

in which it can implement in extending its services to its clients and 4.3% of the

respondents were suggesting that SUMI should use Empower women as the best way in

which it can implement in extending its services its clients

From the finding in table 4.8, the majority of the respondents. 67% agreed that Lack of



the major limitation of SUMI in extending its services to its clients, yet some others with

a percentage of 8.5% supported that it was Politicized loans which was the major or

40



clients.

From the findings in the table 4.9 the majority of the respondents. 67% agreed that

Encourage saving and credit culture is the best solution to the limitations of SUMI in


Proper loan process which the best solution to the limitations of SUMI in extending its

services to its clients, yet some others with a percentage of 8.5% supported Government

intervention on interest rates as the best solution to the limitations of SUMI in extending

its services to its clients and 4.3% of the respondents supported Avoiding politics in

business as the best solution to the limitations of SUMI in extending its services to its

clients.

From the table 4.10 of the respondents suggested that Credit Methodology is the best

service offered by SUMI in Yei County, while the other 20.2% of the respondents

supported Housing Finance as the best service· offered by SUMI, yet 8.5% of the

respondents were suggesting that Marketing strategies was the best service offered by

SUMI and rest of the respondents with a 4.3% suggested that Rural finance was the best

service offered by SUMI.

According to the data investigated in table 4.11, it was recognized that 67% of the

respondents supported political instability as the most pressing challenge faced in

acquiring SUMI Services, while 20.2% of the respondents were in support of government

policy as the challenge faced in acquiring the services of SUMI. 8.5% of the respondents

suggested that Lack of enough resources was the biggest challenge in acquiring the

services of SUMI and 4.3% of the were in support of monetary and fiscal policy as the

biggest challenge faced in the services of SUMI.

The study indicates that the analysis of microfinance in pove1iy alleviation case study:

Sudan Microfinance Yei county.

41

From the general point of view of the respondents, it is evident that Sudan Microfinance

has helped in poverty alleviation in Y ei County and the people are happy with it.

From the findings in the table 4.3 say that they don't know how SUMI has benefited the

society of Yei while a percentage of 8.3% of the respondents responded fair to the

question and 20.2% of the respondents responded very good while the biggest percentage

of 67 of the respondents said that SUMI has benefited the society good.

In view of the analysis from table 4.5 it was found that 67% of the respondents suppo1i

that SUMI has averagely ( 5 0%) helped in the poverty alleviation in Y ei county while

20.2% of the respondents say it has helped Yei county poverty alleviation on 25% basis

and 4.2% of the respondents say that SUMI has helped in poverty alleviation in Yei

county on al 00% basis while 8.3% o f the respondents say it has helped in poverty

alleviation of about I 0% and below thus this indicates that SUMI has averagely helped

the community of Y ei in poverty alleviation.

In the Table 4.6it showed that 67% of the respondents agreed that SUMI should use

Access of credit facilities as the best way in which it can extend its services to its clients,

while other respondents with 20.2% agreed that it should use creating employment as the

best way of extending its services to the clients, yet some others with a percentage of

8.5% were suggesting that it should use health services access as a way of extending its

services to the community and 4.3% of the respondents were suggesting that SUMI

should use Mobilizing savings as a way of extending its services to the clients

In reference to table: the majority of the respondents .. 67% of the respondents agreed that

SUMI should use Ensuring Loan payment as the best way in which it can implement in


should use Recruit, train and retain good staff as the best way in which it can implement

in extending its services to its clients, yet some others with a percentage of 8.5% were

suggesting that it should use Targeting the poorest and converging costs as the best way

in which it can implement in extending its services to its clients and 4.3% of the

respondents were suggesting that SUMI should use Empower women as the best way in

which it can implement in extending its services to its clients

42

From the finding in table 4.8 the majority of the respondents. 67% agreed that Lack of



the maj or limitation of SUMI in extending its services to its clients, yet some others with

a percentage of 8.5% supported that it was Politicized loans which was the major



clients.

In view of the analysis from table it was found that 4.5 of the respondents support that

SUMI has averagely (50%) helped in the poverty alleviation in Yei county while 20.2%

of the respondents say it has helped Yei county poverty alleviation on 25% basis and

4.2% of the respondents say that SUMI has helped in poverty alleviation in Yei county on

a! 00% basis while 8.3% o f the respondents say it has helped in poverty alleviation of

about 10% and below thus this indicates that SUMI has averagely helped the community

of Y ei in poverty alleviation

It can therefore be concluded that microfinance institutions in poverty alleviation have

contributed largely to poverty alleviation most especially Sudan Microfinance has

contributed largely to the alleviation of poverty in Yei County.

However, other factors that affect poverty alleviation and have not been yet worked upon

by Sudan Microfinance are being put in place and in the near time the y will be wiped out

and the community will benefit more from the microfinance.

5.3 Recommendation Since the research findings revealed a positive response thus it is recommended that

following practical recommendation which may improve the level of pove1iy in sudan

Micro finance institution include the following;

Government should withdraw from direct delive1y of credit and concentrate on

"regulation of the industry with appropriate frameworks such as hers 1-4 laws. It should

also build consensus on the regulation of Tier 4, which MFis recommend self-regulation

rather than prudential regulation.

43

It should not do the regulation as well as the delivery of microfinance due to conflict of

interest leading to inefficiencies. A private sector driven microfinance approach is the

sustainable way to empower the rural poor.

Government should support ME 1 s by building their capacity to deliver Micro finance on

a commercial basis. The following could be adopted:

i) Support capacity building for Micro finance institutions (MFis)

Government should support MFis to setup systems, controls and governance so as to

reduce on the costs of operation (Operating costs for small MFis in

Africa average about 40% of loan portfolio, and for larger MFis between 15- 25%).

Computerization is one such area of intervention. E.g. the introduction of basic banking

software product in the Philippines helped reduce operational costs by 60%. Government

should also support the Apex organizations such as AMFIU, UCA to enhance their

capacity to monitor the industry and promote self regulation.

ii) Strengthen Savings mobilization

Government should strengthen the SACCOs and MDis capacity to mobilize savings to

ensure a sustainable source of funds at a lower cost and hence interest rates.

Education Programmes

Mass sensitization to empower microfinance consumers to make informed decisions guided by

the market mechanism. This will force SACCOS and MD ls to get efficient in terms of quality of

service and price.

Government should provide the necessary infrastructure Electricity Government. Should place

resolution of the energy crisis on top of the government agenda. Government has not

demonstrated enough commitment to resolving this matter. In the budget of 2005/6, 20H/- was

set aside for the energy find but actually set aside in the financial year (See FOC alternative

budget). Further, of the 99.4bn/= budget this financial year, 30bri/= is expected to be financed

from the Divestiture Account which is not possible due to legal restrictions on that find and

parliament has stayed that action until the law is amended ..

Markets - to absorb the products

Regional facilities for quality control - to enhance marketability of products across borders

44

Government should stop worrying about interest rates

Interest is a factor of demand and supply of finance. Currently, demand for finance overwhelms

supply, hence the high interest rates. The interest rate is frniher affected by other costs of

operation and which arise from cost of funds and default rates. MFis borrow from commercial

banks and their rates must therefore be higher. Their operational costs are higher than

commercial banks due to low value and high volume of transactions. The issue of concern to

consumers is not the interest rate but access Inspite of the drivers pushing costs, the average

interest rate in the MET industry is now 3-5% and is fi.uiher reducing due to competition and

consumer awareness. What the industry now needs is to increase supply. Government should not

put caps on interest rates. Microfinance is a business and it is managed by the market rather than

government. For government to manage these (through the proposed government Post Bank) is

to reinvent government mechanism for economic control such as the famous Window I and

Window 2, leading to the development of black markets in form of money lenders who may only

serve their own interests.

Government should exhaustively engage all stakeholders on the matter including the political,

professional and consumers prior to implementation of such programmes. Expertise should be

sought, rather than rubbishing them (re: BOU Governor)

5.4 Further Areas of Research. A related study can be carried out on the pove1iy alleviation and microfinance institutions

in the different organization such that a comparison can be carried out for further

clarification. Especially pove1iy eradication and its imp01iance in an organization

(microfinance)

45

REFERENCES

Abdullah M. Tahrunnesa L. & Retherford (1995,) Rural Saving and Credit Program Dhaka

Abedian I & Desmidt M ( 1990). The informal economy in South Africa, South African Journal of

Economics

Abugre C. (1994). Where Credit is not due-A Critical Evaluation of ACCORD 's Experience with

Financial Services Hospes Programme

Aecion International (1988), An Operational guide for Micro Enterprise, Projects, Toronto

Calmeadous

Acharya M. & Beimet L. (1982), Women and the Subsistence Sector; Economic Participation

and household decision making in Nepal Washington

Action Aid (1992) Karibangi Savings and Credit Programme; Keny

Adams D, & Donalid, G (1983).Rural Financial Markets in developing countries, their use and

abuse. Washington Economic Development Institute

Adams D. W, and Heingurasbi K. (1987)"Attempting too much and achieving too little through

rural Financial Markets". Columbus-Ohio

Fuglesang A. &Chandler D. (1986). Participation as a Process what can we learn jiom

Grameen Bank. Norad Oslo

Rose P. 8., Kalari, 3. Wand Frarer D.R. (2004); Financia{Jnstitutions (4th ed) U.S.A, Home

Ebert R. J. and Griffin R. W. (2000) .Business Essentials (3 rd ed) New Jersey Prentice Hall.

wood.

Andrew J. DuBrin(2003). Essential of management (6th ed). Canada; Southwestern

Christian Gronroos(l 990). Service Management and Marketing (vo 1.) Lexington Books'

Earl Sasser, R. Paul Olsen & D. Danyl Wyckoff, (1978). Management Service operations Allyn

and Bacon

Gupta R.S. Sharma B. D. & Bhalla N.S. (2001). Functional Management (4th ed) India Kalyani.

James A, Fitzsimons & Mona J. Fitzsimons (2004}. Service Management (14th ed). New York.

McGraw hill.

Jeffrey A. Timmons & Stephen Spinelli (2004). New V<;nture Creation (6th ed) New York.

McGraw hill.

James H. Donnelly, James. Gibson &John !vi. Ivancevich (1987) Fundamentals of Management

[ 6th ed.] USA; Business Publication.

LeonG.SchiffiTlan&Leslielazarkanuk (1997). Consumer Behavior (6th ed.) Prentice Hall

46

Michad R. Solomon & Elnor & ML Stuart(l993) Marketing (3rd ed.). Pearson Education.

McCarthy E. Jerome & William D. Pen-ealt (1993) .Borvic Marketing [I I th ed]. Richard Irvin

Miriam C. (1991) Food Service Organization 2nd ed.) McMillan.

Peter 5, Rose, James W, Kolari. Donald R. Eraser. Financial Institutions (4th ed.) USA,

Homewood

Ronald E. Markland. Shawnees. K. Vickerv & Robert A. Davis. (1995) Operations Management

(Vol. 1). West Publishing Company.

Ronald J. Ebert & Ricky W. Griffin(2000). Business Essentials (3rd ed) New Jersey. Prentice

Hall.

Valeria, A. Zeithami & Mark JO. Bitner (1996). Service Marketing. New York: McGraw Hill.

Belverd E. Needles, Jr. (2005), Financial Accounting, (8th Edition) Houghton Mifflin Company.

Bhalla (1997), Financial Management and Policy, Animal New Delhi.

Carls W. James M. Philippe E. (1990), Financial and Managerial Accounting ( 6th Edition)

Ancient.

Frank J. Fabozzi (1995), Investment Management England Cliffs, New Jersey Inc.

Jeff Madura (1992) International Financial Management. (3 rd Edition) Kellogg Boulvard.

Pandey I.M (1995) Financial Management 7'11 Edition), Vikas Publishing House PVI Ltd New

Delhi

47

APPENDIX A

QUESTIONNAIRES

Dear Respondent,

As a student offering bachelors degree in business administration, am carrying out a research on

the topic, The impact of micro finance institution on poverty alleviation, case study Sudan micro

finance institution, Y ei county southern Sudan. The purpose of this study is to collect data on the

impact of sumi in poverty alleviation in Yei County.

Your response will be treated with confidentiality and the information obtained will be strictly

for academic purposes.

PERSONAL DATA (Qnl-QnS)

Please tick in the most appropriate box

1. Age

A) 20-25

B) 26-35

C)36-45

D) 46 and above

2.Sex

A) Female

B) Male

3. Marital status I

A) Married

B) Single

4. Level of education

A. Certificate

B. Diploma

C. Degree

D.None

5. Position

A) Employee

B) Client

48

RESEARCH QUESTION ONE (2000)

2001. How has SUMI operations benefited you?

A. Very good

B.Good

C.Fair

D.None

2002. To what extent has SUMI helped in poverty alleviation in Yei County?

2002

RESEARCH QUESTION TWO (3000) 3001. In which ways does SUMI extend its services to its clients?

3002. According to you, what are other possible ways that SUMI can implement in extending its

services to its clients?

RESEARCH QUESTION THREE (4000)

4001. What are the limitations of SUMI in extending servic.es to its clients?

4002. What are the possible solutions to the above limitations?

5003. What are the services offered by SUMI

5004. What challenges are you facing in acquiring these services

49

APPENDIXB

THE TIME FRAME OF THE STUDY

Item Month

Proposal November

Data collection January

Dissertation February

Submitting March

This is the anticipated financial budget for practically carrying out the research to be conducted

in SUMI, Y ei County in Southern Sudan.

BUDGET FOR THE STUDY

Item Amount

Typing and Printing 60,000/=

Literature collection 40,000/=

Data collection 30,000/=

Transport 70,000/=

Other expenses 100,000/=

50

I

MICROFINANCE INSTITUTIONS AND POVERTY ALLEVIATION A …

Documents

Transcript of MICROFINANCE INSTITUTIONS AND POVERTY ALLEVIATION A …