The relationship between formal microfinance institutions and the poor in Beira-Mozambique.
Date
2008-07-11T10:16:39Z
Authors
Vilanculo, Martins dos Santos
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Abstract
ABSTRACT
This paper examines the relationship between microfinance institutions and the poor in
Beira-Mozambique and the benefits accruing from the established relationships. The study
focuses on access to credit and the promotion of entrepreneurship among the target group.
The study concludes that the institutions and the target group, especially active clients,
treasure close long-term relationships and strive to build and sustain such relationships.
However, the relationships have thus far had only a limited, albeit promising, impact on
the sustainability of the institutions, access to credit and the promotion of entrepreneurship
among the target group. Another major finding is that clients already in the credit
relationship do not have serious problems accessing credit upon successful repayment of
previous loans. However, those seeking to enter credit relationships face strict entry
requirements. In short entering credit relationships is more difficult than staying in them.
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Keywords
microfinance, micro-credit, relationship, sustainability, lending, poor access, entrepreneurship, lending technology