NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Wednesday, April 9, 2014

Microfinance institutions in Uganda have over time increased especially after the liberalisation of the economy in the 1990s.

Since independence, the government has initiated credit funding, anticipating a significant reduction in household poverty. However, recent studies indicate that poverty is more of a socio-cultural problem that manifests itself economically to its victims.

With microfinance support coming on board, it had been anticipated that poverty would reduce significantly. However, the current structure of micro financing may not reduce household poverty in the short and medium terms. There are a number of reasons why this cannot happen.