nep-mfd New Economics Papers
on Microfinance
Issue of 2017‒01‒22
four papers chosen by
Olivier Dagnelie
Université de Caen

  1. Poverty Alleviation through Microfinance in North-East Kenya Province By Ali, Abdelrahman Elzahi Saaid
  2. Beyond Traditional Microfinance: Financial Inclusion for Unbanked Kenyans By Ali, Abdelrahman Elzahi Saaid
  3. Re-imaging Capitalism through Social Entrepreneurship By Chatterjee, Susmita; Datta Gupta, Sangita
  4. Zakah for Poverty Alleviation: Evidence from Sudan By Ali, Khalifa Mohamed; Elzahi, Abdelrahman

  1. By: Ali, Abdelrahman Elzahi Saaid (The Islamic Research and Teaching Institute (IRTI))
    Abstract: This research explores the unique micro-level challenges that face poverty alleviation programmes adopted by microfinance institutions (MFI) operating in North Eastern Kenya Province (NEP). The study used structured questionnaires covering the sample of 600 respondents randomly selected from three counties namely Wajir, Mandera and Marsabit. Three Focus Group Discussions (FGDs) comprising 24 participants were held to facilitate a deeper understanding of the challenges of poverty among the North Eastern Province’s communities when alleviated through microfinance. The results reveal that the illiteracy due to the weakness of education and the unfavorable basic and financial infrastructures such as roads, telecommunications network represent the most important challenges which may affect the successful of microfinance programmes. These results recommend both conventional and Islamic microfinance might contribute positively for poverty alleviation for the only Kenyan Muslim-dominated region if these challenges are mitigated.
    Keywords: Poverty Alleviation; Financial Inclusion; Microfinance
    JEL: G21 O10
    Date: 2016–06–12
  2. By: Ali, Abdelrahman Elzahi Saaid (The Islamic Research and Teaching Institute (IRTI))
    Abstract: This study investigates whether Kenya would be able to achieve better financial inclusion by going beyond traditional microfinance through the adoption of mobile microfinance, rather than just transfering and receiving through mobile money. The study used survey and structured questionnaires to check the readiness of the unbanked Kenyan community, microfinance providers, mobile operators, and the government for adopting effective mobile microfinance. The results showed that the unbanked Kenya are engaged in microfinance enabled jobs such as self-employment and retailers. The community, which was found to be highly connected with mobile phone has a lower awareness of mobile microfinance. While respondents admitted using electronic payment on limited situations, cash is still the dominated medium of making payment. Since the unbanked Kenyan are living in remote areas, mobile microfinance would help to improve their access to finance through reducing the cost of services, minimizing the physical distance to the access point, better documentation, and improving outreach by opening the untapped markets. The results recommend that mobile microfinance intuitions and mobile operators need to exert joint efforts to promote more awareness and develop appropriate mobile microfinance products. On the other hand, the regulator intervention is needed to eradicate barriers such as high tariff, bad corporate governance, and dispute resolution.
    Keywords: Financial Inclusion; Mobile Microfinance; unbanked community
    JEL: G21 O10
    Date: 2016–06–12
  3. By: Chatterjee, Susmita; Datta Gupta, Sangita
    Abstract: Abstract: Social Entrepreneurship focuses on activities that make world a better place to live in Social Entrepreneurship addresses various social issues. One such issue is rural development and poverty eradication. One way to achieve this is through self-Help groups. Self –Help group ( SHG) is a unique concept in India Self Help group is a homogenous group of people who have come together with the intention of increasing their income, improve their standard of living and status in society. Self –Help groups is a tool to eradicate poverty and encourage rural development. This study looks into journey of two women from two self-help groups of West Bengal. One SHG is located in rural area and another is in urban area. Self help groups helped them in developing their enterprise. These two micro entrepreneurs in turn provided livelihood to many women in their locality. They have been instrumental in providing other women in their locality with decent income. Self-Help groups not only helped in eradication of poverty but also helped in empowerment of women by providing them with income and social recognition.
    Keywords: Social Entrepreneurship, Micro-Entrepreneurs, SHG, India,
    JEL: O2
    Date: 2016–12–29
  4. By: Ali, Khalifa Mohamed (The Islamic Research and Teaching Institute (IRTI)); Elzahi, Abdelrahman (The Islamic Research and Teaching Institute (IRTI))
    Abstract: In the Republic of the Zakah programme not only aims at short-term escape from poverty due to the programme investments but rather the provision of tools, livelihoods, and peace of mind necessary for participants to sustain themselves as they actively work their way out of poverty. The main objective of this paper is to determine the milestones of alleviating poverty through Zakah Systems in the Republic of the Sudan. More specifically the study seeks to examine the operational efficiency of the Sudanese Zakah Chamber (SZC); to assess the impact of the SZC on its targeted beneficiaries and to determine the extent to which the SZC is linked to the Sudanese Micro finance services (MFS) sector. A structured questionnaire is used.. The results suggest that despite some operational inefficiencies and the challenges facing the SZC there exists a positive and significant relationship between the programme and poverty alleviation in Sudan.
    Keywords: Zakah; Islamic Microfinance; Poverty alleviation.
    JEL: G21 I30
    Date: 2016–05–01

This nep-mfd issue is ©2017 by Olivier Dagnelie. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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