Data Analysis on Emerging Performance of Micro Finance in Zambia-Chipata District

Micro finance is an essential pre-condition for sustainable economic development. The process of provision of financial services has been gaining importance for the overall economic development of the country. Micro finance became alternative source of loans to the poor people with the goal of creating financial inclusion and equality. Informal sector constitute an important part of the economy. Therefore the study was conducted to investigate the impact of Micro Finance in Zambia, the case of residents of Chipata district. The study was guided by the following research objectives: to determine the level of awareness on micro finance products, to assess the level of development of MFIs within Chipata, to assess the impacts of microfinance on Chipata District residents, women in particular and to assess challenges Chipata residents face in accessing credit. The study came up with the several results, among the few are that MFIs have a positive effect on the people of Zambia as MFIs increase the household income levels. It has been noted that, access to credit which is a major challenge in the SME sector has been reduced to a large extent through the operations of MFIs. It was also concluded that MFIs have contributed largely in the area of mobilizing savings through their saving schemes that make saving more accessible, less costly and ready to receive little amounts. The practice helps to improve capitalization as most of these saving are ploughed back in their businesses.