Rural Transformation Through Off-Farm Enterprises: Micro-finance Projects in Murinye Village, Zimbabwe

Abstract

The article assesses the contribution of Micro-Finance Project (MFPs) on the rural livelihoods development in Murinye village, Masvingo District. The significance of micro-finance project was undermined by rural development practitioners and benefactors of Murinye community who were overwhelmed by agrarianisation. Both quantitative and qualitative research methodologies using questionnaires and interviews respectively, were employed in the survey. The results indicated that MFPs enable people to build assets and save in advance. MFPs improve the living standards of rural people through increased household incomes, social capital, human and financial capital. Mismanagement of funds, defaults, lack thereof, risk of administration costs  in loan assessment, follow up and repayment are  challenges encountered in the running of MFPs. The research recommends that the government and NGOs should educate people on how to run their projects and use funds more effectively and efficiently. For the sustainable management of MFIs experts should be incorporated to improve the chances of success especially when they participate from the very earliest stage of project conceptualization.

Keywords: micro-finance, rural transformation, off-farm, poverty reduction