The Impact of Microfinance Activities on Poverty Reduction Among Rural Women in Uganda a Case Study of Kitagata Sub-County
Author: KEMBABAZI BRENDAH
Supervisor: Emmanuel Mutyaba Musoke
The study was carried out in Kitagata Sub-County of Sheema district in western Uganda. It is one of the urban centers in Sheema district in Uganda. The study was also inspired by the phenomenon that despite the existence of microfinance institutions that are largely in support of financial empowerment of rural women, majority number of them in Kitagata Sub-County is still poor and found in rural areas, and employed in agriculture. Only a few are involved in self-employment activities as means of generating income, which has fueled continuous poverty trend among rural women.
The study used two approaches of qualitative and quantitative research methods, which were used to generate data. The quantitative method focused on testing the effects of microfinance activities on poverty reduction among rural women in Kitagata Sub-County while the qualitative approach was used to analyze non-numerical statements of respondents, mainly their views, perceptions and attitudes towards impact of micro finance activities on poverty reduction among rural women in Kitagata Sub-County.
The research used both primary and secondary data sources, where the primary data was collected using a questionnaire, and an interview guide. Secondary data was also accessed through reading text books, reports and journals about the impact of microfinance activities on poverty reduction among rural women. The study revealed that microfinance practices such as accessing micro loans/agricultural loans existed, Savings through SACCOS also being practiced, Financial management training existed and lastly Agricultural microfinance support activities existed while the major one was of savings through SACCOS.As pertains the second objective, it was found out that; Women have been able to start up small businesses and finance them, Majority of women had stopped depending on men financially, the number of domestic violence cases had reduced and access to economic resources and opportunities amongst women has increased.
The findings, as per the third objective, revealed that government of Uganda had; come up with Government Agricultural support programs, come up with national strategies to prevent poverty among rural people and lastly availed policies and laws governing microfinance activities. The study recommends that for poverty levels to further go down among rural women in Kitagata Sub-County, Government should carry out vigorous sensitization on the issue of encouraging rural women to get involved in most microfinance activities since they are productive and relevant to community development and also ensure that the existing laws governing microfinance activities are implemented effect.