Working Document Series Open Access 2012 RUF-31600

Microfinance and the Growth of Small-Scale Agribusinesses in Malawi

J.K. Dzanja

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Abstract

144 words

This research is investigating the impact of microfinance institutions on the ability to enhance the local credit systems and performance of the small and medium enterprises in Malawi. The focus of the assessment will be on agricultural group based businesses. The study was inspired by the success of the Grameen Bank in Bangladesh in reaching the poor through access to microfinance facilities. Using group-based lending strategy microfinance institutions are becoming important institutions in breaking the vicious circle of poverty in many developing countries today. Nevertheless, there are several aspects of microfinacing that remain unclear especially the ability of the local credit systems under smallholder settings in most African countries, which forms the premise of this project. Two students, pursuing their MSc in Agribusiness Management have been recruited to undertake different components of the study under the supervision of the Principal Investigator and other supervisors.

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