Global Journal of Commerce & Management Perspective
Open Access

Abstract

Evaluation of the Effectiveness of Zimbabwean Micro-Finance Institutions in Promoting Entrepreneurs in Bulawayo: Post Dollarisation

Sindiso Mpofu, Tendekayivanhu Mutambanadzo , Lungisani Mpofu and Oliver Chiremba

The Reserve Bank of Zimbabwe (RBZ) in 2004 promulgated micro-finance policy with the aim of promoting entrepreneurship activities in small and medium scale enterprises (SMEs) in Zimbabwe. The study investigated the effectiveness of Micro Finance Institutions (MFIs) in promoting entrepreneurs in Bulawayo in the period 2009 to 2012. A descriptive survey research design was adopted. The research revealed that only a few entrepreneurs had accessed loans from MFIs, due to high interest rates, ignorance of the existence of MFIs as well as lack of trust and confidence in the MFIs. It was concluded that MFIs in Bulawayo are less effective in promoting entrepreneurs. The researchers recommended that the RBZ and Zimbabwean Association of Micro Finance Institutions (ZAMFI) must ensure transparency and integrity in MFI operations to increase their outreach. In addition, ZAMFI and its members must enhance public awareness about MFIs operations through various promotional strategies.