Factors Influencing Poverty Alleviation amongst Microfinance Adopting Households in Zambia

  • Mavhungu Abel Mafukata
  • Grace Kancheya
  • Willie Dhlandhara
Keywords: Perceptual Studies, Savings, Zambia, Poverty


The main objective of this paper is to investigate the factors having the most influence on the alleviation of poverty amongst the households adopting microfinance in Zambia. Ninety nine (n=99) respondents were randomly and purposively selected from amongst 340 microfinance adopters of the so-called Micro Bankers Trust programme operating a microfinance business in the Makululu Compound of Kabwe, Zambia. Socio-demographic primary data were collected through face-to-face interviews based on a semi-structured questionnaire instrument. The data were entered into an excel spreadsheet for analysis. The descriptive data were thereafter exported and fitted to an empirical model. The descriptive results revealed that the majority of the respondents were married, unemployed, fairly educated younger women from larger-sized poor households who drew their household income mainly from microfinance activities. The majority of the respondents thought microfinance had improved their well-being in some crucial areas. The results of the empirical model found that some respondents were indeed alleviated from poverty through microfinance. Conclusion drawn in this paper is that microfinance does alleviate poverty of the poor. 


Agresti, A. (1996). An introduction to categorical data analysis. Wiley-Interscience Publication. New York.

Bahta, S.T. & Bauer, S. (2007). Analysis of the determinants of market participation within the South African subsistence communal livestock sector. Tropentag. 9-11 October.

Balogun, O.L. & Yusuf, S.A. (2011). Determinants of demand for micro-credit among the rural households in South-Western States, Nigeria. Journal of Agricultural and Social Sciences (7)2:41-48.

Brune, A. (2009). An empirical study on the impact of microfinance institutions on development. BA Dissertation, University of Zurich, Switzerland.

Calice, P., Chando, V.M. & Sekloua, S. (2012). Banking to Small and Medium Enterprises in East Africa: Findings of a survey in Kenya, Tanzania, Uganda and Zambia. Working Paper Series, African Development Bank.

Chan, S.H. & Ghani, M.A. (2011). The impact of micro-loans in vulnerable remote areas: evidence from Malaysis. Asia Pacific Business Review 17(1):45-66.

Chawdhury, A.C., Ghosh, D. & Wright, R.E. (2002).The Impact of Micro-credit on Poverty: Evidence from Bangladesh.

Chiumya, C. (2004). Banking sector reform and financial regulation: Its effects on access to financial services by low income households in Zambia. Public Policy Working Paper Series, Paper No.13. University of Manchester, Manchester, England.

Durrani, M.K.K., Usman, A., Malik, M.I. & Ahmad, S. (2011). Role of Micro Finance in Reducing Poverty: A Look at Social and Economic Factors. International Journal of Business and Social Science (2)21. Special Issue.

empowering women in Cairo, Egypt. Masters Dissertation, University of Agder, Egypt.

Fischer, I. & Buchenrieder, G. (2010). Risk management of vulnerable rural households in Southeast Asia. 9th European IFSA Symposium, 4-7 July. Vienna, Austria.

Francis-Chizororo, M. 2008. The formation, constitution and social dynamics of orphaned child headed households in rural Zimbabwe in the era of HIV/AIDS pandemic. PhD Thesis. University of St Andrews.

Galema, R.J. (2011). Microfinance as a Socially Responsible Investment. PhD Thesis, University of Groningen, Groningen, The Netherlands.

Haile, A. (2003). The impact of microfinance in Ethiopia. The case of DECSI in Ganta-Afeshum Woreda of Eastern Tigray. Masters Dissertation, Addis Ababa University, Addis Ababa.

Haile, H.B. (2010). Targeting married women in micro-finance programmes: Transforming or reinforcing gender inequalities? Evidence from Ethiopia. PhD Thesis, Wageningen University, The Netherlands.

Jegede, C.A., Kehinde, J. & Hameel, A.B. (2011). Impact of microfinance on poverty alleviation in Nigeria: An empirical investigation. European Journal of Humanities and Social Sciences (2)1:97-111.

Kausar, A. (2013). Factors affecting microcredit's demand in Pakistan. International Journal of Academic Research in Accounting, Finance and Management Sciences 3(4):1-17.

Khandker, S. (1998). Fighting poverty with microcredit: Experience in Bangladeshi, Oxford University Press for the World Bank.

Khavul, S. (2010). Microfinance: Creating opportunities for the poor? Academy of Management Perspectives: 57-71.

Kherallah, M., Delgado, C., Gabre-Madhin, E., Minot, N. & Johnson, M. (2000). The road half travelled: Agricultural market reforms in Sub-Saharan Africa. Food Policy Report. International Food Policy Research Institute, Washington DC.

Kiiru, J.M. 2007. The impact of microfinance on rural poor households’ income and vunerability to poverty: case study of Makueni District, Kenya. PhD Thesis. Rheinischen Friedrich-Wihelms Uinvesität, zu Bonn.

Leikem, K. (2012). Micro-finance: A tool for poverty reduction? Hons Dissertation, University of Rhode Island.

Li, X. (2010). An empirical analysis of microcredit on China rural household, PhD Thesis, Lincoln University.

Littlefield, E., Morduch, J. & Hasheni, S. (2003). Is micro-finance an effective strategy to reach the Millennium Development Goals? Focus Note 24.

Lopa, C.K. (2009). Microfinance Institutions and Microcredit to small-scale Business: The case of the Copperbelt Province. MBA Dissertation, Copperbelt University, Zambia.

Lumumba-Kasongo, T. (ed). 2005. Liberal dempcracy and its critics in Africa. Political dysfunction and the struggle for Social Progress. CODESRIA. Dakar.

Mafukata, M.A. (2012). Commercialisation of communal cattle-production systems in the Musekwa Valley. Unpublished PhD Thesis, University of the Free State, Bloemfontein.

Matovu, D. (2006). Micro-finance and Poverty Alleviation Uganda. Africa and International Development Cooperation, 1-64.

Milan, F.M. (2012). Social performance of micro-finance institutions: Theory and empirical evidence. PhD Thesis, University of Hohenheim.

Mosley, P., & Hulme, D. (1998). Micro-enterprise finance: Is there a trade-off between growth and poverty alleviation. In Workshop proceedings “Recent research on micro-finance: Implications for policy,” University of Sussex, United Kingdom.

Mulunga, A.M. (2010). Factors affecting the growth of microfinance Institutions in Namibia. Masters Dissertation, Stellenbosch University, Stellenbosch.

Mustapha, Z. & Ismailov, N. (2008). Entrepreneurship and micro-finance: A tool for empowerment of poor – case of Akhuwat-Pakistan, Masters Dissertation, Malardalen University, Pakistan.

Obeng, C.K. (2011). The impact of micro-credit on poverty reduction in rural areas- a case study of Jaman North District, Ghana. CEMBA Dissertation, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana.

Odell, K. (2010). Measuring the impact of microfinance. Taking another look. Grameen Foundation, USA.

Pitamber, S. (2003). Factors Impeding the Poverty Reduction Capacity of Micro-credit: Some Field Observations from Malawi and Ethiopia . Economic Research Papers No.74. African Development Bank.

Pitt, M. M. & S. R. Khandker. (1998). The Impact of Group Based Credit Programs on Poor Households in Bangladesh: Does the Gender of Participants Matter? Journal of Political Economy (6)5, University of Chicago.

Pote, P.P.T. 2008. Technical constraints to smallholder agriculture: Case study of Nkokobe Municipality, Eastern Cape, South Africa. MSc Dissertation. University of Fort Hare, Alice. Pretes, M. (2002). Microequity and microfinance. World Development 3(8): 1341-1353.

Pretes, M. (2002). Microequity and Microfinance.World Development (30) 8:1341–1353.

Silima, V. (2007). A review of stakeholder interests and participation in the sustainable use of communal wetlands: The case of the Lake Fundudzi catchment in Limpopo Province, South Africa. Masters Dissertation, Rhodes University. Grahamstown.

Taha, S.G.A. (2012). The effectiveness of microcredit programmes on alleviating poverty and

Wanambisi A.N. & Bwisa, H.M. (2013). Effects of microfinance landing on business performance: A survey of micro and small enterprises in Kitale Municipality, Kenya. International Journal of Academic Research in Business and Social Sciences (3)7:56-67.

How to Cite
Mafukata, M., Kancheya, G., & Dhlandhara, W. (2014). Factors Influencing Poverty Alleviation amongst Microfinance Adopting Households in Zambia. International Journal of Research in Business and Social Science (2147- 4478), 3(2), 1-19. https://doi.org/10.20525/ijrbs.v3i2.95