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

Kizza, James

doi:10.37284/eajbe.4.1.510

Cited by 3 publications

(3 citation statements)

References 10 publications

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“…The attainment of the social mission from the findings rates highly the need not to harm clients, which can be attained by the microcredit plus activities of the MF. The significant positive relationship between the social mission and the MFI performance collates with findings attributing reduction in client late payment to microcredit plus services like financial education and advisory services (Kizza, 2021;Chong, 2021;Foundation Grameen Credit Agricole, 2021;Froelich, Kemper, Poppe, Breda, & Richter, 2015). The finding on the need to integrate measures to protect the environment during the loan appraisal process is in line the Sustainable Development Goals (SDGs) emphasis on balancing the triple bottom line which can be explored further in future research.…”

Section: Discussionmentioning

confidence: 79%

“…MFIs have embraced the concept of microcredit plus where in addition to providing credit to the poor, clients or group members are trained on how to efficiently utilise the credit advanced and meet the agreed upon repayment schedules. The microcredit plus activities includes enterprise training, client protection policies (Kizza, 2021), training in financial literacy (Chong, 2021) and micro insurance. Financial education (Foundation Grameen Credit Agricole, 2021), which is a component of microcredit plus is positively linked with a reduction in client late repayments (Froelich, Kemper, Poppe, Breda, & Richter, 2015).…”

Section: Microfinance Social Mission and Financial Performancementioning

confidence: 99%

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Microfinance risk management, social mission and financial performance during the Covid-19 pandemic in Uganda

Kizza¹,

Samali²

2022

AJF

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Introduction: Microfinance is an economic tool promoted to extend financial services to the vulnerable groups excluded from the formal financial institutions. The Covid-19 pandemic containment measures disrupted the economic activities of the poor and made it hard for microfinance institutions (MFIs) to reach out to poor. Purpose: This paper sets out to investigate the relationship between microfinance institutions risk management, social mission and financial performance of MFIs during the Covid-19 pandemic in Uganda. The study objectives were to investigate the relationship between risk management and financial performance of MFIs during the Covid-19 pandemic in Uganda and to investigate the relationship between the microfinance social mission and financial performance of MFIs during the Covid-19 pandemic in Uganda. Methodology: This was a cross sectional study that involved 53 respondents conveniently selected from six (6) MFIs from Central Uganda working in the area of credit. The data was collected during the late period of the year 2021 using a self –administered questionnaire and analysed using STATA 12 to generate both descriptive and inferential statistics. Results: The study findings revealed the existence of a significant positive relationship between risk management and the social mission (0.88; ); risk management and financial performance (0.91; ); the social mission and financial performance (0.88; ). Collectively, the predictor variables explain 85% of the variation in microfinance financial performance (Adjusted R-squared 0.85; p<0.00). Recommendations: It is recommended that while designing risk management strategies, the focus be put on the social mission that will translate in the attainment of the financial objective. Attempts should be made by policy makers to help MFIs design strategies that integrate the dual bottom line with the triple bottom line.

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Section: Discussionmentioning

confidence: 79%

Section: Microfinance Social Mission and Financial Performancementioning

confidence: 99%

Microfinance risk management, social mission and financial performance during the Covid-19 pandemic in Uganda

Kizza¹,

Samali²

2022

AJF

Self Cite

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“…Furthermore, the pandemic-induced economic downturn has exacerbated existing challenges faced by MFIs, such as liquidity constraints and decreased investor confidence [23]. Additionally, the economic downturn resulting from the pandemic has exacerbated poverty levels [24], further challenging the ability of MFIs to serve their clients effectively [25].…”

Section: Introductionmentioning

confidence: 99%

Navigating the Cascading Ripples: A Study on the Interplay between the COVID-19 Recession and the Financial Fortunes of Micro Finance Institutions (MFIs)

K.,

Aithal

2024

IJAEML

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Purpose: The success of Micro Finance Institutions (MFIs) hinges on effective decision-making amidst challenging economic circumstances, necessitating the ability to anticipate and navigate future business conditions. This research aims to explore the relationship between financial performance and the COVID-19 pandemic's impact on MFIs listed on the National Stock Exchange (NSE) in India. By analyzing financial data and employing statistical techniques, the study seeks to elucidate the resilience of MFIs during the pandemic and the role of financial ratios in predicting earnings per share (EPS). Additionally, the research aims to contribute to a deeper understanding of the interplay between financial indicators and organizational outcomes within the microfinance sector. Design/Methodology/Approach: This research adopts a quantitative approach, utilizing secondary data obtained from quarterly financial reports of selected MFIs listed on the NSE from 2018 to 2022. Statistical analyses such as paired t-tests, correlation, and regression are employed to assess the impact of the COVID-19 pandemic recession on MFIs' profitability and to investigate the relationship between financial ratios and earnings per share (EPS). Findings/Result: Despite the COVID-19 pandemic recession, the profitability of Indian Micro Finance Institutions (MFIs) remained largely unaffected, as indicated by non-significant differences in earnings before interest and taxes (EBIT) before and after the pandemic. Regression analysis highlighted significant influences of financial ratios like the current ratio, total asset ratio, net profit ratio, and gross profit ratio on earnings per share (EPS), underscoring the sector's resilience and the importance of financial analysis in predicting MFI performance. Originality/Value: This research offers novel insights into the resilience of Indian Micro Finance Institutions (MFIs) during the COVID-19 pandemic and underscores the significance of financial analysis in guiding strategic decision-making processes within the microfinance sector. Paper Type: Empirical Research.

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The Challenges and Opportunities of COVID-19 for Islamic Microfinance Institutions in Bangladesh

Uddin,

Haque,

Anis

2024

Springer Proceedings in Business and Economics

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

Cited by 3 publications

References 10 publications

Microfinance risk management, social mission and financial performance during the Covid-19 pandemic in Uganda

Microfinance risk management, social mission and financial performance during the Covid-19 pandemic in Uganda

Navigating the Cascading Ripples: A Study on the Interplay between the COVID-19 Recession and the Financial Fortunes of Micro Finance Institutions (MFIs)

The Challenges and Opportunities of COVID-19 for Islamic Microfinance Institutions in Bangladesh

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