An analysis of the role of microfinance institutions in achieving financial inclusion in Zimbabwe

Abstract

This dissertation defines financial inclusion as ongoing access to a range of financial services in an affordable and convenient manner. As low income groups are often among those lacking financial access, Microfinance programmes providing financial services to them have emerged as a public policy instrument to promote financial inclusion. This dissertation analyses the contribution of microfinance programmes in promoting financial inclusion in Zimbabwe. The research questions in the dissertation were informed by relevant literature, particularly relating to microfinance and financial inclusion. The lines of enquiry were at microfinance service provider level, microfinance clients and the financially excluded. Primary data was collected in Gweru through interviews with 8 microfinance service providers, and questionnaires administered to 57 microfinance clients and 23 financially excluded persons. This enquiry enables the development of an explanatory framework for financial inclusion. The findings from microfinance providers included barriers to microfinance membership, requirements for a wider range of financial services particularly savings services and the need to enhance financial literacy. This study has implications for policy makers, microfinance service providers and members of the public who are financially excluded.