THE EFFECTS OF MICROFINANCE PROGRAMS ON POVERTY REDUCTION IN BAFIA-MUYUKA COMMUNITY, SOUTH-WEST REGION-CAMEROON

Abstract

Poverty reduction has been a major concern for successive governments in Cameroon over the years because it is believed to be the universally accepted way of achieving economic growth in the country. The intended purpose is to raise the living standards of the people and improve upon their quality of life.  The Cameroonian government has been implementing polices to expand financial access to the poor including promoting microfinance credit access to the poor. Despite these programmes, about 50% of Cameroonian still live below the poverty line. Microfinance programmes are increasingly publicized as one of the most successful tools for development with the ability to positively affect its participant’s economic and social status. However, the effect of access to microfinance credit in Cameroonians remains unknown. Based on this knowledge, the study sought to find out the effect of microfinance credit on poverty alleviation at household level in Bafia-Muyuka Community. The study employed descriptive research method. The population consisted households accessing microfinance credit in Bafia-Muyuka Community. Purposive sampling was to select households that were studied. The study used questionnaire to collect data which was then summarized, coded and tabulated and analyzed using SPSS version 21. The study found that microfinance credit access positively contributes to alleviation of poverty at household level in Bafia-Muyuka Community by providing finance access to low income earners, less educated and those in the informal sector which helps in expansion of business, acquisition of better residential places, and acquisition of education, health and improved welfare. The study also found that access to microfinance credit significantly increases household income and provide avenues for people to save. The study recommends that microfinance institutions to continuously improve their outreach to enable them reach more deserving low income earners in all Counties in Cameroon and households education on use of finances obtained enhanced.

TABLE OF CONTENT

Title page- – – – – – – – – i
Approval page – – – – – – – -ii
Dedication – – – – – – – – -iii
Acknowledgement – – – – – – – -iv
Abstract – – – – – – – – – -v
Table of content – – – – – – – -vi

CHAPTER ONE
INTRODUCTION – – – – – – – -1
1.0 Background of the study – – – – -1
1.1 Statement of the problem – – – – -5
1.2 Purpose of the study – – – – – -6
1.3 Significance of the study – – – – -8
1.4 Research questions – – – – – -9
1.5 Scope of the study – – – – – – -10

CHAPTER TWO

LITERATURE REVIEW – – – – – – -11

CHAPTER THREE

Research methodology – – – – – – -39
Design of study – – – – – – – -40

CHAPTER FOUR

Presentation, analysis and interpretation of data – -48

CHAPTER FIVE

Summary of findings – – – – – – -60
Conclusion – – – – – – – – -61
Recommendations – – – – – – – -62
Suggestions for further research – – – – -64
References – – – – – – – – -65
Appendix I – – – – — – – – -68
Questionnaire. – – – – – – – -69

THE EFFECTS OF MICROFINANCE PROGRAMS ON POVERTY REDUCTION IN BAFIA-MUYUKA COMMUNITY, SOUTH-WEST REGION-CAMEROON