CONTRIBUTIONS OF INHLANYELO FUND MICROCREDIT TO RURAL by 6I7Ey7Ks

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									    CONTRIBUTIONS OF INHLANYELO FUND MICROCREDIT TO RURAL
                MICROENTERPRISES IN SWAZILAND


                          M. B. Masuku1* and H. Motsa1


ABSTRACT
Poverty remains the country’s greatest challenge and is viewed as the
main source of the country’s development challenges. Microenterprises
play an important role in employment generation, poverty alleviation, and
economic empowerment. They also provide potential opportunities for
economic benefits to developing countries, such as Swaziland. These
potential benefits, are often not realised due to a number of factors, such
as the size of small- and medium-size enterprises and lack of credit. This
study investigated the contribution of Inhlanyelo Fund microcredit on the
economic development of the microenterprises in Swaziland. Using a
stratified random sampling method, personal interviews were conducted
on a sample of 99 entrepreneurs. The results revealed that, by accessing
credit from Inhlanyelo Fund, the entrepreneurs’ income improved by
E17,875.51(57%) in Year 1, E4,601.15 (15%) in Year 2 and E9,052.24
(29%) in year 3. The value of assets improved by E3,900.00 to E5,992.86.
It is concluded that Inhlanyelo Fund made a significant improvement to the
livelihoods of the entrepreneurs through income generation and assets
accumulation. It is recommended that Inhlanyelo Fund should provide a
pre- and post-loan training on business management for their clients, so
that they would make effective use of the loans provided.




1   Department of Agricultural Economics and Management, University of Swaziland,
     Private Bag Luyengo, Luyengo M205, Swaziland Email: mbmasuku@uniswa.sz

								
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