The Role of Microcredit Activities as an Instrument for Poverty Reduction: An Analysis from Mozambique
International Journal of Finance and Banking Research
Volume 5, Issue 3, June 2019, Pages: 36-47
Received: Apr. 28, 2019; Accepted: Jun. 3, 2019; Published: Jul. 1, 2019
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Author
Jochua Abrão Baloi, Faculty of Ethics, Human and Legal Sciences of the University of Saint Thomas of Mozambique, Maputo, Mozambique
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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.
Keywords
Credit, Microfinance, Poverty, Mozambique
To cite this article
Jochua Abrão Baloi, The Role of Microcredit Activities as an Instrument for Poverty Reduction: An Analysis from Mozambique, International Journal of Finance and Banking Research. Vol. 5, No. 3, 2019, pp. 36-47. doi: 10.11648/j.ijfbr.20190503.11
Copyright
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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