Can the Grameen Bank Be Replicated in Africa? Evidence from Malawi

Bibliographic Data

ID11401403
AuthorsWinford H Masanjala (Louisiana State University, corresponding author)
Year2002
Volume23
Issue1
Pages87-103
Publication date2002-01-01
Open AccessNo
TypeARTICLE
VenueCanadian Journal of Development Studies/Revue canadienne d études du développement (JOURNAL)
Journal identifiersISSN: 0225-5189 • E-ISSN: 2158-9100
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/02255189.2002.9668855
OpenAlexW2009271114
LanguageEN
Citations received2
References cited5

Although success stories of microcredit schemes from Asia have generated a lot of enthusiasm among development practitioners about the prospects of rural poverty alleviation, informed opinion is still sharply divided on the efficacy of this instrument in Africa. Using evidence from FINCA-Malawi, this paper empirically questions the replicability of Grameen-type banks in Africa. While the credit scheme was financially sustainable and FINCA clients had higher savings, working capital and business expenditure, these did not translate into higher household consumption. Clients' risk aversion in investment and uncharacteristically high turnover rates seem to explain the low program impact on the household economy

Business · Capital (architecture · Consumption (sociology · Development economics · Economic growth · Economics · Enthusiasm · Geography · Investment (military · Micro credit · Microfinance · Political science · Poverty · South asia · Innovation and Socioeconomic Development · Microfinance and Financial Inclusion · Urban and Rural Development Challenges

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