The Impact of Microfinance Services to Household Livelihood: A case study of PRIDE Arusha Branch

Benedict Anselmi


Microfinance programmes have been considered as
one of the main instrument in poverty reduction in recent
development agenda. It’s a means to support the marginalized
active poor of the society. The main objective of this study was
to find out whether the provision of microfinance services of
Promotion of Rural Initiatives and Development Enterprises
(PRIDE) has brought changes on the livelihood of its clients. The
study was carried out at PRIDE Tanzania Arusha branch where
clients those who received credit for more than five years were
studied. It focused on the result of microfinance programmes at
household level. A case study design was used in this study. A
probability sampling technique was adopted in this study to
select respondents to be included in this study. Finding revealed
that microfinance programme has made a positive impact on
household’s income, asset ownership and domestic appliances
ownership, food condition, education, medical facilities and
saving at the household level. Therefore, strengthening the
developments of microfinance in Tanzania especially in rural
areas is an appropriate and appreciated policy instrument to
realize the objectives of Poverty Reduction Strategy of Tanzania.

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