The Impact of Financial Inclusion on Poverty Reduction in Tanzania: Evidence from Mbozi District

Abstract

The study assessed the impact of financial inclusion on poverty reduction among rural people in Tanzania; the sample of 541 was drawn from Mbozi distinct. The study used multiple regression analysis to analyse the data, poverty reduction was assessed in terms of increase in consumption expenditure and household income as outcomes of credit acquisition from financial organs. The findings showed a positive correlation between access to financial services and increase in consumption expenditure as a factor in poverty reduction. It concludes that, among other factors, consumption expenditure would be an appropriate measure upon judging and monitoring the poverty levels among rural households in Mbozi District. The policy implication is that microfinance organs should not turn to hard terms that can prevent that rural household from accessing services.

Keywords: financial inclusion, financial institutions, financial services, and poverty

DOI: 10.7176/EJBM/12-25-09

Publication date:September 30^th 2020