Financing Structure and Financial Sustainability of Selected Sadc Microfinance Institutions (Mfis)

Bibliographic Data

ID12616111
AuthorsInnocent Bayai (0000-0003-4304-1809, National University of Science and Technology Zimbabwe, corresponding author), Sylvanus Ikhide (0000-0003-4081-9830, Stellenbosch University Business School South Africa)
Year2018
Volume89
Issue4
Pages665-696
Publication date2018-03-22
Open AccessYes
TypeARTICLE
VenueAnnals of Public and Cooperative Economics (JOURNAL)
Journal identifiersISSN: 1370-4788 • E-ISSN: 1467-8292
PublisherWiley (PUBLISHER • GB)
DOI10.1111/apce.12207
OpenAlexW2794406876
LanguageEN
Citations received4
References cited33

This study analyses selected Southern Africa Development Community (SADC) Microfinance Institutions (MFIs) in delineating how commercialized financing structure relates to financial sustainability given the need to control poverty through financially sustainable MFIs. The study takes from a recent SADC microfinance survey which recommended financial rescue packages for ailing MFIs to proffer financial sustainability. This survey failed to specify the form of financing which supports financial sustainability in addition to the inconclusive and little evidence in this regard. We note that though the financing structure and the level of financial sustainability varies with countries, MFIs are generally financially unsustainable. A robust probit model framework affirms the role of financing structure on financial sustainability. Portfolio at risk, cost efficiency and costs linked to deposit attraction explain financial sustainability. We suggest the availing of more donations, upgrading risk management and improving cost efficiency to induce financial sustainability

Business · Economic growth · Economics · Financial system · Microfinance · Portfolio · Poverty · Probit model · Sustainability · FinTech, Crowdfunding, Digital Finance · Islamic Finance and Banking Studies · Microfinance and Financial Inclusion · Finance

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