Assessing The Impacts of Microfinance Institution (VICOBA) on Poverty Reduction: A Case Study of Tembomgwaza, Dar es Salaam.

Mwanga, Farida (2021) Assessing The Impacts of Microfinance Institution (VICOBA) on Poverty Reduction: A Case Study of Tembomgwaza, Dar es Salaam. Masters thesis, The Open University of Tanzania.

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Abstract

This study aimed to assess the impacts of microfinance institution (VICOBA) on poverty reduction, case of Tembomgwaza, Tabata Kisukuru, Dar es Salaam. The research objectives were to describe challenges facing VICOBA microfinance institution in poverty alleviation, and to examine how business training services, enhance poverty reduction among members of VICOBA microfinance institution. A case study design was selected where primary data collected using questionnaires and interviews from 86 respondents selected randomly. The data analyzed using SPSS software tool. The study found that, microcredit loans play a significant role on influencing community involvement in microfinance institutions. Community members are willing to join microfinance institutions to get financial assistance. Still there are the challenges which are limiting the success of VICOBA microfinance institutions in alleviating poverty due to differ in members and leaders’ interests, hence limiting some of the factors required for success. There is limited support from the government to help the microfinance meet the intended goals. VICOBA microfinance institutions encourages cooperation among business entrepreneurs by good trainings offered to them a factor increasing their business investment skills. Business training services found to enhance poverty reduction among VICOBA microfinance institution as beneficiaries are consulted on how to manage a certain business. The study concluded that, the community is on high need from VICOBA microfinance as it is the liberator of their economy, they are able to serve their families and expand profits. The study recommended that, VICOBA microfinance leaders should ensure that they well train loans beneficiaries before they are entering to business environment, this will help them to avoid all risks associated with certain business, a factor that will help in reducing community poverty. Keywords: Microfinance Institutions, VICOBA, Poverty, Microcredit Services.

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