An examination of the drivers of uptake of microcredit services by customers: the case of South Sudan Microfinance

Manyuon, Daniel Athior Atem
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Strathmore University
The study examined utilization of microcredit from South Sudan Microfinance institution at the group and individual levels to minimize poverty in South Sudan. This has been intended to determine the effects and what drives various persons to seek for microcredit. In so doing, three main objectives were used which included to examine; the levels of uptake and effect of microcredit on the households’ income and savings; the drivers for the uptake of microcredit and assess interventions of South Sudan Microfinance Institution (SUM) and Government of South Sudan in enhancing the uptake of microcredit as main stakeholders. Financial intermediary and stakeholders’ theories were used together with a pragmatic approach to underpin the study. Therefore, qualitative and quantitative methods were used to collect the data from this descriptive case study with a sample size of 400 participants. These methods included interviewing and administering questionnaires. Qualitative data were descriptively analyzed to suit the themes under the study objectives. Quantitative data were coded and entered the Scientific Package for the Social Scientists (SPSS). The analysis was done by the t-test to establish the differences in minimizing poverty among groups and individual borrowers. ANOVA was also used to analyze the drivers and the extent to which stakeholders’ approaches have been essential to the borrowers. The mean results indicate a high difference in effects among the group borrowers in comparison to an individual. The findings also show that the household drivers are significant differences but institutional drivers remain significant to all borrowers. It is also indicated that drivers used like grace period and interest rates are friendly to most poor women. The study concludes by recognizing efforts made by SUM for having been one of the best intermediaries between the people and commercial banks so that those outside the criteria of such financial institutions can also access microcredit. Upon this, the study recommends continued working with the government so that it can establish more branches in rural areas to enable poor people to access credits and employ the citizens.
A dissertation submitted to Strathmore Business School in Partial fulfillment of the requirements for the award of Master of Science in Development Finance Degree of Strathmore University
Microcredit Services, South Sudan Microfinance, Microfinance Institution