The impact of micro-finance on poverty alleviation: A case study of Swakopmund youths
This study investigated the impact of microfinance on poverty alleviation, using a sample of 100 participants drawn from 3 microfinance institutions in Swakopmund. In addition, the study employed a descriptive case study as a research design for quantitative research. The SPSS software was used to analyse the quantitative data that was collected from the field research. Income, education, consumption spending, health care, nutrition, non-land asset holdings, social empowerment and housing conditions were among the eight variables used to measure the impact of microfinance on household welfare. Furthermore, three business indicators were utilised to assess the impact of microfinance on firm growth. Sales, profits, and capital are examples of these. The impact of four microfinance variables on household welfare was also estimated in this study. The overall value of microfinance loans, the length of participation in microfinance programs, the total number of microfinance loans, and the average yearly interest rate were all factors considered in the study. It is important to note that longer participation in microfinance programs improves the likelihood of perceived improvements in income, consumption spending, and social empowerment, according to the logistic regression results. Furthermore, raising the total quantity of microfinance loans raises the chances of better-perceived health care access. Higher interest rates reduce the odds of better-perceived income, education, consumption expenditure, social empowerment, and living conditions whereas higher cumulative value of microfinance loans reduces the odds of better-perceived income, consumption expenditure, education, and health care. The study's major recommendations are aimed at policymakers, international organisations, and non-governmental organisations (NGOs). Microfinance is not an effective poverty alleviation strategy at this time, as seen by the circumstances on the ground, and alternative initiatives aimed at producing jobs for the poor are required. In terms of policy impact, the government of the Republic of Namibia ought to ensure that social assistance programs reach the needy and that public goods are of high quality until a successful poverty-alleviation program is established. Moreover, it can also foster sustainable, market-based microfinance by reducing unfair competition from governmental institutions; implementing regulatory reform; and finally strengthening the business climate
Micro-finance, Poverty alleviation, Swakopmund youths
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