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Periodical article | Leiden University catalogue | WorldCat |
Title: | Microfinance Programs in Uganda: An Analysis of Household Participation and Investment Behavior |
Authors: | Kiiza, Barnabas A. Pederson, Glenn D. |
Year: | 2003 |
Periodical: | Eastern Africa Journal of Rural Development |
Volume: | 19 |
Issue: | 1 |
Pages: | 66-80 |
Language: | English |
Geographic term: | Uganda |
Subjects: | credit household budget Development and Technology Economics and Trade |
Abstract: | This paper examines low-income household participation in microfinance credit programmes in Uganda and the effects on investment behaviour from repeated access to these institutions. A survey was conducted of Pride Africa and the Uganda Women's Finance Trust (UWFT) borrowers for the calendar years 2000-2001 in the districts of Mbale, Jinja, Mukono and Masaka. Primary household data were collected for 150 borrowing and 235 nonborrowing households. The major occupational categories of the respondents included civil servants, traders, farmers, other self-employed persons, farm labourers and landlords. The results indicate that the most significant factors influencing the decision of a household to participate are proximity to microfinance institutions (MFIs), dual sources of household income, and income stability. Once the decision has been made to participate, repeated use of the financial services of MFIs has a positive impact on household investment in health, education, and consumption. Repeated access to credit from an MFI significantly raises the likelihood that a household will invest more in nutrition, health and education. Through repeated access to credit, income and wealth effects are generated that may reduce vulnerability to poverty. Bibliogr., sum. [Journal abstract, edited] |