An Investigation Into the Extent to Which Microfinance Institutions Are Contributing to the Financial Inclusion Strategy in Zimbabwe

Abstract

This research an investigation into the extent to which Microfinance institutions are contributing to the Financial Inclusion Strategy in Zimbabwe was undertaken because microfinance institutions in Zimbabwe have been failing to play their role in order to achieve financial inclusion. This research study was guided by research objectives namely 1) to investigate the feasibility of integrating microfinance and mobile banking to accelerate financial inclusion, 2) to determine the extent of financial inclusion in geographically remote areas and 3) to establish necessary measures that will shift usage of microfinance funding from consumption to productive purpose. The target population for this study was comprised of 5 microfinance organizations namely Coverlink microfinance, Getbucks microfinance, CBZ microfinance, Solid microfinance and Steward microfinance which had a total of 320 employees taken from their human resources offices in their headoffices in Harare, Zimbabwe. The researcher adopted a sample of 120 employees which were attained through the use of Raosoft online sample size calculator. A stratified sampling was adopted to choose the sample from microfinance institutions in Zimbabwe. This research study revealed that there tend to be lacking feasibility of integrating microfinance and mobile banking to accelerate financial inclusion in Zimbabwe, financial inclusion has been adopted in geographically remote areas through mobile phones and financial deepening, measured by bank credit to the private sector, reduced corruption thereby acted as a measure that shifted usage of microfinance funding from consumption to productive purpose. It is recommended that Microfinance institutions should contribute to the Financial Inclusion Strategy in Zimbabwe.