Rural - urban linkages and microfinance services: a case study of Igowole in Mufindi District
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Date
2012
Authors
Journal Title
Journal ISSN
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Publisher
Sokoine University of Agriculture
Abstract
The study analysed the role of microfinance services in the development of rural - urban
linkages for poverty reduction at Igowole in Mufindi district Iringa. The specific objectives
of the study were to (i) identify opportunities and challenges of rural - urban linkages and
its impact on poverty (ii) examine the effect of microfinance services on rural - urban
linkages (iii) examine the effect of rural - urban linkages on poverty reduction (iv)
examine factors affecting household access to microfinance services. A sample of 80
households from Igowole EUC and 70 household from immediate hinterland were
interviewed. Logistic regression was used to examine factors affecting access to
microfinance in both rural and urban areas. Majority 66.7% and 54.8% of none migrant
and migrant at immediate hinterland, respectively; had access to informal microfinance
services. Nonetheless 55.3% and 38.1% of none migrant and migrant at Igowole EUC,
respectively; had access to informal microfinance services. Among many reasons
household were accessing informal microfinance due to accessibility and timeliness. Rural
- urban linkages increase opportunities for income generating activities in both urban and
rural areas. Hence development interventions aimed to alleviate rural and urban poverty
should target to facilitate these linkages at all level of planning. Microfinance services
boosted the transfer of financial capital from rural to urban and vice versa though savings
and credit. Rural - urban linkages provided farm and non-farm employment opportunities
and improved social services like education and health services.
Description
Master's Dissertation
Keywords
Microfinance, Urban linkage