The Role of Microcredit Activities as an Instrument for Poverty Reduction: An Analysis from Mozambique

Jochua Abrão Baloi

doi:doi:10.11648/j.ijfbr.20190503.11

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The Role of Microcredit Activities as an Instrument for Poverty Reduction: An Analysis from Mozambique

Jochua Abrão Baloi

Published in International Journal of Finance and Banking Research (Volume 5, Issue 3)

Received: 28 April 2019 Accepted: 3 June 2019 Published: 1 July 2019

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Abstract

This article comes about with the objective of analyzing the role of microcredit activities as a tool for poverty reduction in Mozambique, and specifically to sellers of the Xipamanine Market in Maputo City. The central thesis to be defended is that: microcredit if is well managed contributes to improve the socioeconomic conditions of populations that do not have access to credit in traditional banks. The research was carried out in Xipamanine Market in Maputo City and the data collection on the survey was carried out based on interviews with the sellers of this market. In general, about 90% of the respondents indicated that, in fact, whenever banks grant microcredit to borrowers and they manage it well, there is a change in their initial situation. According to the respondents, the traditional financial system leads to exclusion of certain categories such as low-income populations and especially the poorest people. Therefore, this article draws the conclusion that microcredit has a significant impact on the Mozambican economy, since, in addition to being able to generate individual wealth, it contributes significantly as an instrument to fight against poverty.

Published in	International Journal of Finance and Banking Research (Volume 5, Issue 3)
DOI	10.11648/j.ijfbr.20190503.11
Page(s)	36-47
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Credit, Microfinance, Poverty, Mozambique

References

[1]	FIRMINO, Teresa Nachau Fernandes (2016). Microcredit as a Tool for Generating Income for Microentrepreneurs: an analysis applied to the Portuguese case. Dissertation of the Master. Lusophone University of Humanities and Technologies, School of Economics and Organizations. Lisbon, p. 10.
[2]	MUSSAGY, C. (2005). Microfinance in Mozambique. Impact of Microcredit on Poverty Reduction: The Case of Chókwè and Maputo. EMU. Thesis of Degree in Management. Maputo.
[3]	CGAP. (2017). Frequently Asked Questions about Financial Inclusion. The Consultative Group to Assist the Poor (CGAP): http://www.cgap.org.
[4]	MONZONI, M. P. N., (2008). Impact on Microcredit Income: An Empirical Research on the Generation of Income from Popular Solidary Credit in the Municipality of São Paulo. Thesis (PhD) - School of Business Administration, Fundação Getúlio Vargas, São Paulo. p. 35; 37.
[5]	GOLDMARK, L., et al. (2000). The Situation of Microfinance in Brazil. Preliminary version for the International Seminar BNDES Microfinance: BNDES-IDB Microfinance Project, Rio de Janeiro.
[6]	BARONE, F. M.; LIMA, P. F.; DANTAS, V.; REZENDE, V. (2002). Introduction to Microcredit: Solidarity Community Council. Brasília. p. 13.
[7]	REYMAN, Ana Elizabeth Neirão (2013). Public policies, social capital and microcredit: An analysis of the experiences of Brazil and Chile. In: DIAS, Jean Carlos. SIMÕES, Sandro Alex de Souza. Law, Public Policy and Development. Rio de Janeiro: Forensic; São Paulo: Method; Belém, Pará: CESUPA.
[8]	YUNUS, M. (2006) The Banker of the Poor, 2nd edition, Ed. Ática, São Paulo. p. 40; 45.
[9]	COUTINHO, A. & SILVA, P. (2005). Microcredit in Portugal: A New Opportunity, Millennium BCP, Lisbon. p. 13.
[10]	PEROSSA, M. e MARINO, E. (2014). Relationship between the Ascent of Microcredit and Financial Poverty Alleviation in Latin Scene. Global Business Magazine. (4th ed.). EUA: Institute for Business & Finance Research.
[11]	PSICO, J. A. T. (2010). Microfinance - a solution to fight against poverty? Editora Escolar. Lisbon. p. 41.
[12]	ATHMER, G. & HUNGUANA, H. (2004). «Poverty Outreach and Impact Assessment in Mozambique», Characteristics of the Microfinance Sector & of the Three Institutions Involved in the Impact Assessment, Netherlands Platform for Microfinance, Netherland.
[13]	MURDOCH, K. (2004). Study of the Demand for Credit in Markets in Maputo, Maputo.
[14]	CHIDZERO, A., FRÖHLICH-LASSIMO, C., HUNGUANA, H.; CUEVAS, C. (1998). Study on microfinance in Mozambique. Bank of Mozambique and Ministry of Planning and Finance. University Press, UEM, Maputo. p. 171.
[15]	KRAYCHETE, E. S. (2005). The World Bank and the Development of Microfinance in Countries of the Capitalist Periphery. Thesis of (PhD in Administration) - School of Administration, Federal University of Bahia, Ondina. p. 22.
[16]	VLETTER, F. (2006). The Microfinance Sector in Mozambique: Achievements, Perspectives and Challenges, Maputo. p. 85, 86.
[17]	HAFFNER, J. A. H. & DANIEL, M. M. (2010). Contextualization of the Microfinance Sector in Mozambique, Period 2000 to 2006, in the Scientific and University Journal of the Center for Policy Analysis of the FLSC, on Political Economy and Development. Eduardo Mondlane University, Maputo. p. 85.
[18]	BANK OF MOZAMBIQUE (2007). Banking of the Economy: Extension of Financial Services to Rural Areas. Nampula: XXXI Advisory Board of the Banco de Mozambique. p. 86.

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APA Style

Jochua Abrão Baloi. (2019). The Role of Microcredit Activities as an Instrument for Poverty Reduction: An Analysis from Mozambique. International Journal of Finance and Banking Research, 5(3), 36-47. https://doi.org/10.11648/j.ijfbr.20190503.11

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Jochua Abrão Baloi. The Role of Microcredit Activities as an Instrument for Poverty Reduction: An Analysis from Mozambique. Int. J. Finance Bank. Res. 2019, 5(3), 36-47. doi: 10.11648/j.ijfbr.20190503.11

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AMA Style

Jochua Abrão Baloi. The Role of Microcredit Activities as an Instrument for Poverty Reduction: An Analysis from Mozambique. Int J Finance Bank Res. 2019;5(3):36-47. doi: 10.11648/j.ijfbr.20190503.11

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@article{10.11648/j.ijfbr.20190503.11,
  author = {Jochua Abrão Baloi},
  title = {The Role of Microcredit Activities as an Instrument for Poverty Reduction: An Analysis from Mozambique},
  journal = {International Journal of Finance and Banking Research},
  volume = {5},
  number = {3},
  pages = {36-47},
  doi = {10.11648/j.ijfbr.20190503.11},
  url = {https://doi.org/10.11648/j.ijfbr.20190503.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20190503.11},
  abstract = {This article comes about with the objective of analyzing the role of microcredit activities as a tool for poverty reduction in Mozambique, and specifically to sellers of the Xipamanine Market in Maputo City. The central thesis to be defended is that: microcredit if is well managed contributes to improve the socioeconomic conditions of populations that do not have access to credit in traditional banks. The research was carried out in Xipamanine Market in Maputo City and the data collection on the survey was carried out based on interviews with the sellers of this market. In general, about 90% of the respondents indicated that, in fact, whenever banks grant microcredit to borrowers and they manage it well, there is a change in their initial situation. According to the respondents, the traditional financial system leads to exclusion of certain categories such as low-income populations and especially the poorest people. Therefore, this article draws the conclusion that microcredit has a significant impact on the Mozambican economy, since, in addition to being able to generate individual wealth, it contributes significantly as an instrument to fight against poverty.},
 year = {2019}
}

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TY  - JOUR
T1  - The Role of Microcredit Activities as an Instrument for Poverty Reduction: An Analysis from Mozambique
AU  - Jochua Abrão Baloi
Y1  - 2019/07/01
PY  - 2019
N1  - https://doi.org/10.11648/j.ijfbr.20190503.11
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JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
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PB  - Science Publishing Group
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AB  - This article comes about with the objective of analyzing the role of microcredit activities as a tool for poverty reduction in Mozambique, and specifically to sellers of the Xipamanine Market in Maputo City. The central thesis to be defended is that: microcredit if is well managed contributes to improve the socioeconomic conditions of populations that do not have access to credit in traditional banks. The research was carried out in Xipamanine Market in Maputo City and the data collection on the survey was carried out based on interviews with the sellers of this market. In general, about 90% of the respondents indicated that, in fact, whenever banks grant microcredit to borrowers and they manage it well, there is a change in their initial situation. According to the respondents, the traditional financial system leads to exclusion of certain categories such as low-income populations and especially the poorest people. Therefore, this article draws the conclusion that microcredit has a significant impact on the Mozambican economy, since, in addition to being able to generate individual wealth, it contributes significantly as an instrument to fight against poverty.
VL  - 5
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Jochua Abrão Baloi

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APA Style

Jochua Abrão Baloi. (2019). The Role of Microcredit Activities as an Instrument for Poverty Reduction: An Analysis from Mozambique. International Journal of Finance and Banking Research, 5(3), 36-47. https://doi.org/10.11648/j.ijfbr.20190503.11

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ACS Style

Jochua Abrão Baloi. The Role of Microcredit Activities as an Instrument for Poverty Reduction: An Analysis from Mozambique. Int. J. Finance Bank. Res. 2019, 5(3), 36-47. doi: 10.11648/j.ijfbr.20190503.11

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AMA Style

Jochua Abrão Baloi. The Role of Microcredit Activities as an Instrument for Poverty Reduction: An Analysis from Mozambique. Int J Finance Bank Res. 2019;5(3):36-47. doi: 10.11648/j.ijfbr.20190503.11

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@article{10.11648/j.ijfbr.20190503.11,
  author = {Jochua Abrão Baloi},
  title = {The Role of Microcredit Activities as an Instrument for Poverty Reduction: An Analysis from Mozambique},
  journal = {International Journal of Finance and Banking Research},
  volume = {5},
  number = {3},
  pages = {36-47},
  doi = {10.11648/j.ijfbr.20190503.11},
  url = {https://doi.org/10.11648/j.ijfbr.20190503.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20190503.11},
  abstract = {This article comes about with the objective of analyzing the role of microcredit activities as a tool for poverty reduction in Mozambique, and specifically to sellers of the Xipamanine Market in Maputo City. The central thesis to be defended is that: microcredit if is well managed contributes to improve the socioeconomic conditions of populations that do not have access to credit in traditional banks. The research was carried out in Xipamanine Market in Maputo City and the data collection on the survey was carried out based on interviews with the sellers of this market. In general, about 90% of the respondents indicated that, in fact, whenever banks grant microcredit to borrowers and they manage it well, there is a change in their initial situation. According to the respondents, the traditional financial system leads to exclusion of certain categories such as low-income populations and especially the poorest people. Therefore, this article draws the conclusion that microcredit has a significant impact on the Mozambican economy, since, in addition to being able to generate individual wealth, it contributes significantly as an instrument to fight against poverty.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - The Role of Microcredit Activities as an Instrument for Poverty Reduction: An Analysis from Mozambique
AU  - Jochua Abrão Baloi
Y1  - 2019/07/01
PY  - 2019
N1  - https://doi.org/10.11648/j.ijfbr.20190503.11
DO  - 10.11648/j.ijfbr.20190503.11
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 36
EP  - 47
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20190503.11
AB  - This article comes about with the objective of analyzing the role of microcredit activities as a tool for poverty reduction in Mozambique, and specifically to sellers of the Xipamanine Market in Maputo City. The central thesis to be defended is that: microcredit if is well managed contributes to improve the socioeconomic conditions of populations that do not have access to credit in traditional banks. The research was carried out in Xipamanine Market in Maputo City and the data collection on the survey was carried out based on interviews with the sellers of this market. In general, about 90% of the respondents indicated that, in fact, whenever banks grant microcredit to borrowers and they manage it well, there is a change in their initial situation. According to the respondents, the traditional financial system leads to exclusion of certain categories such as low-income populations and especially the poorest people. Therefore, this article draws the conclusion that microcredit has a significant impact on the Mozambican economy, since, in addition to being able to generate individual wealth, it contributes significantly as an instrument to fight against poverty.
VL  - 5
IS  - 3
ER  -

Copy | Download