Microfinance Credit and Empowerment of Rural Women in Nyanza, Rwanda

ABSTRACT 

This study was an investigation on microfinance credit and empowerment of rural women in Nyanza, Rwanda. This was guided by the following objectives: i) to determine the relationship between education loan and rural women empowerment in Nyanza district, Rwanda; ii) to establish the relationship between business loan and rural women empowerment in Nyanza district, Rwanda; and iii) to determine the relationship between agriculture loan and rural women empowerment in Nyanza district, Rwanda. This study employed descriptive cross-sectional survey design. The study population was 5600 participants. The sample size of 373 was determined using Solven’s formula, however. 289 respondents participated. The main data collection instruments were questionnaires and interviews. Data was analysed using frequency and percentage tables; mean and standard deviations; and regression analysis; while qualitative data was descriptively analysed. The study found a positive, moderate and significant relationship between education loan and rural women empowerment. Similarly, the study found a positive, moderate and significant relationship between business loan and rural women empowerment. In addition, the study found a positive, moderate and significant relationshin between agriculture loan and rural women empowerment. The study concluded that nucrofinance credits are important in promoting rural women empowerment economically and socially. The study made the following recommendations: microfinance institutions should try to extend more credit f’acilities to clients to expand their businesses; microfinance institutions should provide training programs to rural women to improve women’s entrepreneurial skill and reduce the problems which hinder their access to microfinance; microfinance institutions should conduct usual meeting with the beneficiaries to make them aware about the use of loan in proper business; and microfinance institutions should ensure that they monitor their clients to find out if the money given to them is been used as intended. The contribution to new knowledge by this study is that education loan, business loan, and agriculture loan significantly affect rural women empowerment.

TABLE OF CONTENTS

DECLARATION I

APPROVAL

DEDICATION iv

ACKNOWLEDGEMENT V

LISTS OF ACRONYMS AND ABBREVIATIONS vi

TABLE OF CONTENTS Vii

LIST OF TABLES X

£kBSTRACT

CHAPTER ONE 1

INTRODUCTION 1

1.1.1 Historical Perspective 1

1.1.2 Theoretical Perspective 3

1.1.3 Conceptual Scope 4

1.1.4 Contextual Perspective 5

1.2 Statement ofthe Problem 5

1.3 Purpose ofthe Study 6

1.4 Objectives ofthe Study 6

1.5 Research Questions 6

1.6 Hypothesis 7

1.7 Scope ofthe Study 7

1.7.1 Geographical Scope 7

1.7.2 Theoretical Scope 7

1.7.3 Content Scope 7

1.7.4 Time Scope 7

1.8 Significance ofthe Study 8

CHAPTER TWO 10

LITERATURE REVIEW 10

2.0 Introduction 10

2.1 Theoretical Review 10

2.2 Conceptual Framework 15

2.3 Related Studies 16

2.3.1 Women Empowerment 16

2.3.1.1 Economic Empowerment 17

2.3.1.2 Increased Well-Being .18

2.3.1.3 Social Empowerment 19

2.3.2 Microfinance Credit 20

2.3.2.1 Loans 21

2.3.2.1.1 The Relationship Between Education Loan and Rural Women Empowerment 22

2.3.2.1.2 The Relationship Between Business Loan and Rural Women Empowerment 23

2.3.2.1.3 The Relationship Between Agriculture Loan and Rural Women Empowerment 24

2.3.3 The Relationship Between Microfinance Credits on Rural Women Empowerment 24

2.4 Research Gaps

CHAPTER THREE 29

METHODOLOGY 29

3.0 Introduction 29

3.1 Research Design 29

3.2 Study Population 29

3.3 Sample Size 29

3.4 Sampling Technique 30

3.5 Data Source 31

3.6 Research Instruments 31

3.6.1 Questionnaires 31

3.6.2 Interview Guide 32

3.7 Validity and Reliability 32

3.7.1 Validity Test 32

3.7.2 Reliability 32

3.8 Measurement of Variables 33

3.9 Data Gathering Procedure 34

3.10 Data Analysis 34

3.11 Ethical consideration 35

3.12 Limitations ofthe Study 35

CHAPTER FOUR 37

DATA PRESENTATION, ANALYSIS AND INTERPRETATION 37

4.0 Introduction 37

4.1 Response Rate 37

4.2 Demographic Characteristics ofthe Respondents 37

4.3 Microfinance Credit in Nyanza District, Rwanda 39

4.4 Rural Women Empowerment .44

4.5 The Relationship Between Education Loan and Rural Women Empowerment in Nyanza District, Rwanda 50

4.6 The Relationship Between Business Loan and Rural Women Empowerment in Nyanza District, Rwanda 51

4,7 The Relationship Between Agriculture Loan and Rural Women Empowerment in Nyanza District, Rwanda 52

CHAPTER FIVE 54

DISCUSSION, CONCLUSIONS AND RECOMMENDM iONS 54

5.0 Introduction 54

5.1 Discussion ofthe Findings 54

5.1.1 The Effect of Education Loan on Rural Women Empowerment in Nyanza District, Rwanda....54

5.1.2 The Effect of Business Loan on Rural Women Empowerment in Nyanza District, Rwanda,..... 55

5.1.3 The Effect ofAgriculture Loan on Rural Women Empowerment in Nyanza District, Rwanda .56

5.2 Conclusion 58

5.3 Contribution to New Knowledge 58

5.4 Recommendations

5.5 Areas of Further Studies 60

References 61

APPENDIX 1: QUESTIONNAIRE 70

APPENDIX 11: INFORMED CONSENT 71

APPENDIX Ill: INTERVIEWS 75