Rural microfinance: a strategy for reducing aid dependence for poverty alleviation in rural sub-Saharan Africa

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Periodical article

Title:	Rural microfinance: a strategy for reducing aid dependence for poverty alleviation in rural sub-Saharan Africa
Authors:	Mago, Stephen Hofisi, Costa
Year:	2012
Periodical:	Africanus (ISSN 0304-615X)
Volume:	42
Issue:	1
Pages:	85-97
Language:	English
Geographic term:	South Africa
Subjects:	microfinance poverty reduction rural poverty
Abstract:	Africa, for four decades, has received billions of dollars in foreign aid, but has failed to develop. Aid is mottled with the 'dependency syndrome', which causes people to remain underpowered to escape poverty. Access to financial services by the poor is one strategy for increasing their incomes and productivity for poverty alleviation. This paper focuses on rural microfinance in South Africa. It relies on a literature review to show that microfinance can reduce aid dependency. The findings reveal that many poor people lack access to basic financial services. Microfinance is one way of fighting poverty in rural areas. Traditional financiers require physical collateral that poor people do not have. Microfinance is viewed as a useful intervention that can help to economically empower rural people Bibliogr., note, sum. [Journal abstract]