Does the pursuit of outreach consistently stifle the financial performance of microfinance institutions in sub-Saharan Africa

Datos Bibliográficos

ID3885752
AutoresSydney Chikalipah (0000-0002-1399-3641, Abudwak Maternity and Children's Hospital, autor de correspondencia)
Año2020
Volumen30
Número3
Páginas409-420
Fecha de publicación2020-04-02
Peer ReviewedSí
Open AccessNo
TipoARTICLE
RevistaDevelopment in Practice (JOURNAL)
Identificadores de la revistaISSN: 0961-4524 • E-ISSN: 1364-9213
EditorialInforma UK Limited (PUBLISHER • GB)
DOI10.1080/09614524.2019.1680607
OpenAlexW2997174808
IdiomaEN
Citas recibidas1
Referencias citadas32

This article studies the relationship between outreach and the financial performance of 479 microfinance institutions (MFIs) in 37 countries of sub-Saharan Africa (SSA), covering the period 1998–2012. Findings indicate a positive and statistically significant relationship between outreach and the financial performance among MFIs in SSA. Providing small microcredits below the US$600 threshold is associated with lower profitability than larger loans, and MFIs serving more than 30,000 clients reported a stronger financial performance than those serving fewer than 30,000. The study findings have implications for managers and stakeholders in the microfinance industry of SSA

Business · Development economics · Economic growth · Economics · Financial system · Microfinance · Outreach · Profitability index · FinTech, Crowdfunding, Digital Finance · Islamic Finance and Banking Studies · Microfinance and Financial Inclusion · Finance