Abstract:

A new approach for poverty reduction has emerged spearheaded by
microfinance institutions (MFIs). However in spite the existence of numerous MFIs
in Uganda and overwhelming financial support to them, poverty still remains
rampant in Uganda despite the wide adoption of using MFIs to reduce it. Few
poor people have accessed credit through MFIs. Impact created by MFIs on
poverty assault is insignificant as many people have remained below the
poverty line. Information on the effectiveness of MFIs in terms of sustainability
and outreach is insufficient. Also lacking is information regarding the program
design characteristics and context which determine the success of MFIs as
vanguards of poverty alleviation. Reliable information on characteristics,
performance and conditions of individual MFIs is in demand but has become
difficult to obtain. Factors that influence outreach and sustainability and hence
effectiveness of MFIs have not been established. The result study is therefore
designed with the general objective to appraise outreach and sustainability of
selected MFIs in Uganda towards poverty alleviation and their effectiveness.
Specifically the study will determine outreach and sustainability of selected MFIs
and analyze how they are influenced by program and contextual
characteristics.