Abstract:
The study was carried out in Kibaigwa Township and immediate hinterlands at
Kongwa district. The specific objective of the study were to: identify and
characterize savings and credit services in the study area; assess rural-urban linkages
between Kibaigwa emerging urban centre and immediate rural areas and to
determine the role of savings and credit on development of Kibaigwa urban centre.
Primary data were collected using structured questionnaire administered to 120
respondents.
Microfinance
institutions
present
includes:
KIFISSACOS;
UMAKISSO; KAMCOs and Cargo porters. These institutions are important
instrument helping microenterprises and farmers to access savings and credit
services. Credit and savings to poor enterprises create potential for the growth of
business investments and help in rural-urban linkages which leads to emergency of
Kibaigwa Township.
Based on the findings of this study the following
recommendations were made: The government in collaboration with various
development partners should consider the possibility of establishing credit
institutions to provide specific credit and savings needs to small farmers and small
businesses; Land registration by the government must be immediately carried out to
allow the majority of poor farmers to have legal land ownership rights and be able to
use it as collateral when they apply for credit from formal financial institutions. The
government should instate policy that creates favourable conditions and investment
opportunities in urban areas through: Improving and increasing roads, health centers,
primary schools and secondary schools, rural electrification; water services and
transportation services between villages and townships.
