The impact of micro finance institutions on poverty alleviation in Uganda: A case study of Commercial Micro Finance Limited in Pallisa District
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Poverty alleviation is a contentious issue that is highly debated in all circles of life; be it political, social or economic. Even more contentious is the issue of poverty eradication. Governments the world over have highlighted poverty eradication as a top priority subject. The most recent remedy believed to have a probable positive impact is the idea of micro finance. The abundance of literature on micro finance and the various institutions practicing it build a firm background for thorough assessment of the actual impact of the institutions on the ground. The study also employs an ethical view on the real motive of the operation of MFIs, particularly in Uganda. The study focuses on the impact of MFIs on poverty alleviation, with particular reference to C.M.F.L in Pallisa district. C.M.F.L is one of the MFIs in Uganda, with a considerably wide coverage of the country. The study utilises both qualitative and quantitative methods. The direct beneficiaries constituted the primary respondents. Key informants were drawn from the policy makers on micro finance from B.O.U and the UMFA as well as the top management and staff of C.M.F.L and U.W.F.T that were apparently the only operational MFIs in Pallisa district besides NGOs like Action Aid. Focus discussion groups, in-depth interviews, questionnaires and observation techniques were utilised. Chapter one presents an overview of the problem in question highlighting the aspects of the proposal like the background to the study, the statement of the problem, the objectives and scope of the study, the justification, and significance of the study and the conceptual framework. In Chapter Two, literature that relates to the topic of study has been reviewed. This review is presented in a systematic and coherent manner with relevant elaborations. In some cases, the researcher used the knowledge and experience gained about micro finance over the years, including actual involvement, to corroborate what other scholars and writers have observed. The methods that were utilised to collect, analyse and document data are presented in Chapter Three. The chapter also precisely highlights the actual intentions of these institutions in the administration of credit, and the problems encountered by the researcher. From the analysis of the study, the relevant deductions have been made and a number of recommendations drawn in the hope that the findings and their analysis might help MFIs achieve their goal in an ethical and more humane manner. All in all, it is hoped that this study shall further provide guidelines as a basis for techniques on the application of micro finance in the country.