The Contribution of Microfinance Institutions on Poverty Reduction Among Women in Dar es Salaam

MFI sector plays an important role in poverty reduction in the economy especially of the less developed countries. This role is like the heart to the human body to pump the financial resources that are necessary for the economic growth and well being of a nation and its people. This research focused on the contribution of the microfinance sector on poverty reduction efforts among women in Dar es Salaam. Poverty reduction was looked at four major variables namely income, employment level, saving and assets ownership by female entrepreneurs. In order to analyze the contribution of the microfinance institutions on the above mentioned parameters, primary data were collected through questionnaire from 100 respondents. The research found that, there was a significant decrease in poverty among women as recognized and proved by an increase in income, employment level, saving and assets ownership to them as a result of loans from the MFIs. Despite of these achievements, it is recommended that the microfinance sector should invest in advertising its services so that more poor people are recruited by them. Again there is a need for them to expand their services to rural areas where a rate of poverty is higher rather than concentrating in urban are