Contribution of Microfinance Services on Performance of Cooperatives in Rusizi District, Case Study of KOIMUNYA
DOI:
https://doi.org/10.53819/81018102t2381Abstract
This study had to determine the contribution of microfinance services to performance of cooperatives in Rusizi district, with a case study of KOIMUNYA, through identifying the contribution of microcredit, assessing the contribution of saving services and the contribution of money transfer services, as offered by microfinance, in addition to analyzing the contribution of financial trainings organized by microfinance, to the performance of KOIMUNYA, from June 2023 up September 2023. The literature review defined key concepts and developed conceptual review related to microfinances services and cooperative performance, and theoretical review such as Financial Intermediation Theory, Agency theory, Social Capital Theory, Social Exchange Theory and Resource Dependence Theory. Moreover, empirical review and conceptual framework regarding the contribution of microfinance services, in terms of independent variables, on performance of KOIMUNYA, in terms of dependent variables, were provided to finally end up with a research gap. This study was conducted on 1804 members of KOIMUNYA, among whom a sample size of 327 respondents was selected, to respectively answer to questionnaire for a descriptive and correlative analysis, with the help of SPSS computer packages, version 20. The study revealed that microcredit, saving services, money transfer and financial trainings as offered by microfinance institutions, with respective (β=0.539), (β=0.597); (β=0.593) and (β=-0.593) and with significance (all p<0.05) had significant contribution to the performance of KOIMUNYA. So, the study concluded that microfinance services had been significantly contributing to the performance of cooperatives in Rusizi district. However, the study recommended, for cooperatives, to further develop and expand its microcredit offerings to better meet the diverse financial needs of cooperative members, to consider introducing innovative savings products that incentivize regular saving and provide competitive interest rates, and assess the content, format, and delivery of financial training programs to identify potential areas for improvement.
Key words: Microcredit, Saving Services, Money Transfer and Performance of Cooperatives
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