Effects of microfinance institutions on sustainability of women's livelihood a case of Luanda Division in Emuhaya District

Abstract

This study was designed to establish effects of micro finance institutions on sustainability of women's livelihood in Luanda division. The researcher aimed at finding out why there is increasing poverty amongst women despite the presence of the mainstream banking institution which was hoped to provide finances to all members of the nation. This study adapted a descriptive survey design as a major method of research where data was to be collected by the researcher from members of a population under study. Stratified sampling technique was used to single out women groups from other groups mixed up of men and women. Other methods included simple random and purposive sampling techniques. Data was collected by use of questionnaires, interview guides and observations. It was then analyzed by use of descriptive statistics constituting frequencies and percentages. The results of this study indicated that women in their women group despite the presence of the mainstream banking institutions in Luanda division were unable to access credit due to collateral requirement. They depended on merry go rounds within their group which was consumed by their basic needs. The macro- credit institutions required collaterals like land title deeds and vehicle logbooks, which most women do not possess. This denied most women who could move far in business chances of obtaining credit from such institutions. Therefore, continued to survive below the poverty lines. The emergence of micro finance institutions that mobilized women in small group and gave them credit opened the eyes of many women towards the business world. However, there are factors that hinder the expansion of economic activities of the low-income women. Such factors were among them illiteracy levels, poverty, lack of access to land and ownership of other sources of production, marital status, lack of funds, the size of the family and family problems and culture. The research revealed that most women in these groups had engaged themselves in small businesses which did not last long. They lasted up to the repayments of a V4 or Y: z of the loans credited to them leading to loan defaults which eventually results in auction of property by creditors or forcing the guarantors to repay for the loan balances a situation that left many women poorer than they were. The results of the study revealed that a high percentage of women had low levels of education. It was also noted that most of them were house wives with large families which posed as a challenge in the lives of many women. Majority of these women borrowed capital with which they initiated and expanded their small businesses hence improved the sustainability of their livelihoods.