CONTRIBUTION OF MICROFINANCE INSTITUTIONS IN POVERTY REDUCTION OF ITS MEMBERS CASE STUDY: COPEDU PLC KICUKIRO MAIN BRANCH (2019-2022)

Abstract

The general objectives of this study was to analyze the contribution of Microfinance Services to the Poverty reduction of its members The specific objectives of the study were . To assess the effectiveness of services provided by Microfinance institutions. To determine how microfinance institutions contribute to the Poverty reduction of its members The sample of 30 participants have been investigated using questionnaires and interviews The Purposive sampling techniques have been adopted . The study findings revealed that (mean=4.32 and std.=0.79) of the respondents were of the opinion that growth in microfinance loans facilitates members in wealth creation, (mean= 4.06 and std.=1.03) of the respondents were of the opinion that their loans from the microfinance has increased during the last 5 years, (mean=4.15 and std.=0.83) of the respondents were of the opinion that the Microfinances facilitate growth in loans for members while 83.0% of the respondents were of the opinion that the first loan by a member from a microfinance is smaller than the subsequent loans. This implies that member borrows a bigger loan to increase his or her investment in the microfinance. The study findings revealed that (mean=4.14 and std.=0.566) of the respondents were of the opinion that Financial cooperatives provide safe facilities for savings, enabling savers to smooth consumption, (mean=4.26 and std.=0.577) of the respondents were of the opinion that COPEDU PLC, KICUKIRO MAIN BRANCH members usually invest in shares and also deposits in the COPEDU PLC, KICUKIRO MAIN BRANCH, (mean=4.22 and std.=0.564) of the respondents were of the opinion that The larger the share capital of each member in a COPEDU PLC, KICUKIRO MAIN BRANCH, the stronger the member economically, (mean=4.21 and std.=0.578) of the respondents were of the opinion that If the average level of investment in the COPEDU PLC, KICUKIRO MAIN BRANCHs is high in a certain region, then the poverty level was low, (mean=4.3and std.=0.526) of the respondents were of the opinion that the level of investment for each member determines the size of loan which such a member will qualify for. The majority of respondents strongly agreed with each one. This indicates that respondents in general strongly agree that access to financial services provided by COPEDU PLC, KICUKIRO MAIN BRANCH enabled them to pay school fees for their children on time with a mean of 2.89 and a standard deviation of 0.831, obtain school supplies on time with a mean of 3.11 and a standard deviation of 0.825, and afford their children's uniforms on time with a mean of 3.06 and a standard deviation of 0.671. This indicates that, on average, respondents (mean = 2.79 and standard deviation = 0.801) believe that having access to financial services provided by COPEDU PLC, KICUKIRO MAIN BRANCH made it easier for them to send their kids to private school.