Microfinance Services and the Clients’ Socioeconomic Wellbeing During the Covid-19 Pandemic in Uganda

James Kizza

doi:10.37284/eajbe.4.1.510

Abstract

Microfinance is reported to be an effective tool of empowerment for vulnerable and marginalised groups, especially women. This study set out to investigate the relationship between microfinance services and the clients’ socioeconomic wellbeing during the Covid-19 pandemic in Uganda. The study involved 73 employees of microfinance institutions that deal directly with the clients. The study findings revealed that while no significant relationship exists between microfinance services and clients’ socioeconomic wellbeing, there is a significant moderate positive relationship between microfinance client protection policies and the clients’ socioeconomic wellbeing. The regression model revealed that a unit increase in client protection policies increases the socioeconomic wellbeing of microfinance services beneficiaries by 72%. It is recommended that microfinance institutions integrate client protection policies in their activities in line with their known social mission

Highlights

Microfinance institutions (MFIs) are socially oriented organisations that offer non-collateralised microcredit to the vulnerable and marginalised groups usually excluded from formal financial institutions
The study findings revealed that much as microcredit provided sources of funding to set up income-generating activities (IGAs) and other related money transfers that generally led to improved incomes and household wellbeing, many female households continue to be poor and marginalised
The results indicate that microfinance social services do not lead to improved socioeconomic wellbeing during periods of the pandemic (0.1; p 0 .05 )

Summary

17 December 2021

This study set out to investigate the relationship between microfinance services and the clients’ socioeconomic wellbeing during the Covid-19 pandemic in Uganda. The regression model revealed that a unit increase in client protection policies increases the socioeconomic wellbeing of microfinance services beneficiaries by 72%. Microfinance Services and the Clients’ Socioeconomic Wellbeing During the Covid-19 Pandemic in Uganda. (2021) “Microfinance Services and the Clients’ Socioeconomic Wellbeing During the Covid-19 Pandemic in Uganda.”, East African Journal of Business and Economics, 4 (1), pp. “Microfinance Services and the Clients’ Socioeconomic Wellbeing During the Covid-19 Pandemic in Uganda.”, EAJBE, vol 4, no.

INTRODUCTION

LITERATURE REVIEW

Findings

RESULTS