Micro finance Support Initiatives and Poverty Reduction in Nsagi Subcounty, Wakiso District Uganda: A case of Opportunity bank

Abstract

The study examined the relationship between microfinance support initiatives and poverty reduction among Opportunity Bank clients in Nsangi Sub County. It was guided by the following objectives: to assess the relationship between credit services and poverty reduction among Opportunity Bank clients in Nsangi Sub County; to assess the relationship between saving services and poverty reduction among Opportunity Bank clients in Nsangi Sub County and to assess the relationship between financial literacy services and poverty reduction among Opportunity Bank clients in Nsangi Sub County. A cross sectional research design was used. The study predominantly employed a quantitative approach but also used a qualitative approach. The study population consisted of 357participants but a sample size of 269 was selected using Morgan and Krejcie Table (1970). A convenience sampling technique and purposive sampling were used to choose respondents. Quantitative data analysis mainly consisted of descriptive statistics (percentages) and inferential statistics (Pearson correlation, coefficient of determination and regression). Content analysis was used to analyze qualitative data. Findings revealed that there is significant relationship between credit services and poverty reduction among Opportunity Bank clients in Nsangi Sub County; there is a significant relationship between saving services and poverty reduction among Opportunity Bank clients in Nsangi Sub County and there is a significant relationship between financial literacy services and poverty reduction among Opportunity Bank clients in Nsangi Sub County. It was concluded that the more the microfinance support initiatives are provided, the higher the reduction of poverty. It was thus recommended that Opportunity Bank to review their interest rates, improve on the turnaround time for loan processing, revise the collateral requirements and emphasize saving through mobile money among others. Such changes would increase on access of these services to the clients and help them to have maximum benefit from the bank hence leading to poverty reduction.