Impact of Microfinance on Poverty in Zambia

Abstract

This research studies the impact microfinance has on poverty in Zambia. The study uses simple linear regression analysis to determine if a relationship exists between the two variables, with poverty being predicted while microfinance being used to predict the outcome of its impact on Zambia. It is a well-known fact that most countries in Africa are facing this type of phenomenon, many countries are striving to alleviate poverty by enforcing different measures and one of them is through the introduction of microfinance institutions. This study defines and gives a clear view of what and how microfinance institutions are fighting poverty by providing different types of services to unemployed individuals, individuals who lack access to conventional banking systems, low-income earners, small businesses, and enterprise owners.